GEOTECHNICAL ENGINEER INSURANCE CASE STUDY
Sole Trader Geotechnical Consultant, $2M PI Placed After Nine Occupation Declines and Renewed
Site classification and foundation inspection work by a one-person consultancy. Nine PI markets declined the occupation. One quoted at two limits, and the client took $2 million. A year later the renewal was tested against three markets and held.
THE SITUATION
A sole-trader geotechnical consultant in metropolitan NSW came to Tank Insurance for professional indemnity. The work was site classification, foundation inspection and site inspections on new construction, split evenly between single and double-storey residential and single-storey commercial, with expected turnover of around $190,000 and no subcontractors.
The client wanted $2 million PI priced alongside $1 million, and also asked about $20 million public liability.
OUR APPROACH
- The occupation was corrected before submission. "Geological engineering" was not going to be rated correctly; the work was geotechnical consulting and the submission said so.
- The submission went wide. Nine PI markets declined on occupation, including one that referred the risk and declined the next day. One specialist market quoted both limits: approximately $8,500 at $1 million and $9,700 at $2 million.
- The client took $2 million for a step of around $1,300.
- At renewal, with turnover revised to $150,000, the incumbent offered terms, a second market indicated $15,000 plus, and two markets declined. Excess options of $15,000 and $20,000 inclusive of defence costs were priced, at around $12,000 gross either way.
THE CHALLENGES
Foundation and site classification advice carries long-tail structural exposure, and nine PI markets declined it on occupation here. A sole trader with no reports yet issued and no claims history adds to the caution. The specialist market that quoted did so on the corrected occupation, the project split and confirmation the business would operate full time.
THE OUTCOME
$2 million professional indemnity was placed with About Underwriting at approximately $9,700 in year one, with the NSW small business insurance duty exemption applied on the client's declaration, and renewed with the same market at around $12,000 with a higher excess after the alternatives were tested.
Final Solution: $2 million geotechnical PI for a sole trader at around $9,700, after nine declines, renewed at around $12,000 against an alternative of $15,000 plus.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our geotechnical engineer insurance guide and the engineers insurance hub.
GEOTECHNICAL CONSULTANT QUESTIONS
What this placement answers for other geotechnical consultants
How much does PI cost for a sole trader geotechnical engineer?
Why do so few insurers quote geotechnical PI?
Does the occupation description matter on a PI proposal?
GEOTECHNICAL ENGINEER INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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