New Project Manager - Navigating Limited Experience

A project manager working in property and construction contacted us needing Professional Indemnity insurance. They had been operating for approximately one year, providing project management services across property and construction developments.

The requirement was $1M PI cover. Straightforward on paper, but the limited trading history made this a harder placement than the cover amount might suggest.

For construction project managers early in their career, finding PI can be genuinely difficult. Many insurers set minimum experience thresholds, and one year often falls below them.

We went to market across six insurers to find the best available terms:

• Woodina: approximately $3,100
• Vero: approximately $3,150
• DUAL: approximately $4,150
• Hutch: referred - minimum experience requirements not met
• Allianz: referred, no terms offered
• QBE: referred, no terms offered

Only three of the six insurers were willing to provide formal quotes. The other three all referred the risk, primarily due to the limited trading history.

The core challenge was experience. With only one year of trading history, half the market wouldn't quote. This is a common barrier for newer construction managers - insurers want to see an established track record before they're comfortable providing terms.

Among the three insurers that did quote, there was a significant pricing spread. DUAL came in at roughly $4,150 - more than 30% above the cheapest option. Without comparing properly, the client could have ended up paying considerably more or, worse, been told by a single insurer that cover wasn't available.

The experience issue also meant the client had fewer options to negotiate on policy terms. When only three markets are willing to quote, you work with what's available.

We placed $1M PI through Woodina at approximately $2,900. They offered the most competitive premium and were comfortable with the one-year trading history where others weren't.

As the client builds their track record over the coming years, the market will open up and premiums should come down - similar to what we see across other construction management placements.