CASE STUDY - STRUCTURAL ENGINEER PI
Four Declines. One Market. When Your Own Insurer Can't Help.
A WA structural engineer needed a higher PI limit. His existing insurer declined to quote it. So did four others. When one underwriter controls the pricing, the market can feel expensive - even when it genuinely is the cheapest option available.
THE SITUATION
A sole-trader structural and civil engineer based in Western Australia approached us for PI and PL cover. The work was split roughly 80% structural, 20% civil, and included site inspections and pool inspections alongside standard consulting services.
His existing PI policy was through his incumbent insurer. At renewal, his business had grown and he needed a higher limit - $3 million. His existing insurer couldn't accommodate the new limit. He came to us specifically for that reason: his own insurer, who knew him and had covered him previously, couldn't meet his current coverage needs.
We took the $3M PI and $20M PL to the market across six insurers.
OUR APPROACH
We submitted to six PI underwriters and four PL markets. The submission included the engineer's occupation split, geographic footprint, and the specific inclusion of pool inspections and site inspections alongside the standard structural and civil consulting scope.
Pool inspections were highlighted clearly. Structural engineers who inspect pools are assessing existing structures for compliance, safety, or damage - an activity that some underwriters specifically flag as adding liability exposure beyond standard design work.
For the PL, we approached four underwriters: QBE, RelyOn, Hollard, and Vero.
THE CHALLENGE
The existing insurer, despite knowing the engineer's risk profile, declined to quote at the new limit - and couldn't provide competitive terms even at the lower limit. Three further major PI insurers declined on occupation alone. Four out of six declined without quoting.
That left Vero and Ocean Underwriting as the only two markets willing to assess the risk. Ocean Underwriting was cheaper at both limit options. The better terms were clear, but the premium level was the issue: for a practice at this revenue stage, PI costs represent a significant proportion of turnover. The occupation is inherently high-risk to underwriters, and premiums don't scale down meaningfully for smaller books - the potential liability is the same regardless of firm size.
THE OUTCOME
We obtained the best available terms across the market at both limits. Ocean Underwriting was the cheapest option at $3M and $2M. Vero was the only alternative, priced higher at both. On the PL side, QBE was the most competitive of the four markets at just over $1,000.
The engineer ultimately decided not to proceed, with the PI premium the sticking point. That's a legitimate outcome. But the key finding was that his own existing insurer - who knew his risk profile - couldn't quote his new limit. Going to the broader market surfaced two options that the incumbent couldn't match. The most competitive available was Ocean Underwriting. Without a market comparison, that gap wouldn't have been visible.
This case also illustrates a common pressure point for growing structural practices. Renewing with the same insurer year after year can feel like the path of least resistance, but insurer appetite has a ceiling. When your coverage needs change, your existing insurer may not be able to follow you - and you won't know until you ask.
Put this placement in context
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