Product Design Engineer PI Insurance

Product design engineers need Professional Indemnity insurance for their design and advisory services. This covers claims from clients alleging your design was negligent - causing product failures, injury risk, regulatory non-compliance, or production problems. Note that product liability for physical products you manufacture is separate cover. See our PI FAQs for engineers for more.

Professional Indemnity covers claims from clients about the quality of your design advice and services. Product Liability covers claims from third parties injured or harmed by a physical product. Product designers typically need PI; if you also manufacture products, you'll likely need Product Liability as well.

Yes, if your design doesn't meet required safety standards and a client suffers losses from product recalls, redesigns, or regulatory action, PI insurance covers claims arising from your professional negligence. This includes Australian mandatory safety standards and ACCC requirements.

Some PI policies include unintentional IP infringement coverage. If your design inadvertently infringes an existing patent or registered design, causing your client legal exposure, this may be covered subject to policy terms. Intentional copying is excluded.

Cover of $1M-$5M is typical for product design consultants. Designs for mass-market consumer products, medical devices, or high-value industrial products may require higher limits given the potential for significant consequential losses from product failures or recalls.