CASE STUDY - STRUCTURAL ENGINEER PI
Increasing PI to $10M. The Spread Was 2.6x.
A structural engineer wanted to increase his PI limit to open up larger project work. His existing insurer couldn't accommodate it. We mapped the market and found a 2.6x difference in pricing for identical cover.
THE SITUATION
A structural and civil engineer based in New South Wales operated a small two-person firm, with revenue of just under $200,000. The scope of work covered small residential projects, temporary works for demolition, council work including stormwater, footpath extensions, and kerb design. Flooding assessments and geotechnical work were explicitly outside scope, referred to specialists where needed.
His existing PI policy was $2 million, arranged through an online platform. He wanted to increase his limit to $10 million to be able to take on larger project work - the kind of work that requires higher cover as a condition of engagement.
We took the $10M PI to the market.
OUR APPROACH
We approached the market through both specialist underwriting channels and platform-based access, reaching a broad spread of underwriters including ProRisk and Progress.
Each submission included the full scope of work - the structural and civil split, the council work, temporary works for demolition, and the explicit exclusions around flooding and geotechnical. The $10M limit was stated upfront in every submission.
We also ran a $2M parallel quote to give the engineer a comparison point for his existing coverage level.
THE CHALLENGE
One underwriter was willing to quote at $2M but, at the time, its appetite had a ceiling and didn't extend to the $10M limit. Several other underwriters referred or couldn't accommodate the dual occupation - the 50% structural and 50% civil split required manual assessment rather than a straightforward platform quote, and some couldn't price it at the $10M level at all. Insurer appetite varies.
That left two workable quotes from specialist underwriters - one at around $14,600, one at around $5,700. Same occupation, same limit. A 2.6x difference in premium.
This isn't unusual. Different underwriters apply different rate tables and rating algorithms to the same occupation combination. Structural and civil work at $10M PI sits differently in each insurer's pricing model. Without running both, the engineer could easily have paid $14,600 for cover that was available elsewhere at $5,700.
THE OUTCOME
We obtained the best available terms in the market at $10M through a specialist underwriter at around $5,700. The only other workable quote came in at $14,600 - roughly 2.6 times higher for identical cover.
The project the engineer was targeting ultimately fell through, so he didn't proceed with the $10M policy. He asked to be followed up at renewal to review his ongoing $2M arrangement. The submission work was complete - the market was fully mapped and terms were on the table - when the need dissolved.
The broader pattern is common for structural engineers. Many practices carry a base $2M policy for day-to-day work and then want to increase their limit to pursue larger or more complex projects. The gap between what an existing insurer can offer and what's needed is often what brings engineers to a broker. And as this case shows, the spread between the cheapest and most expensive quote for that uplift can be very significant.
Put this placement in context
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