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As with other traditional professions, insurers will look
for details of qualifications, experience or a combination of
both when considering cover. If a consultant is unqualified
the Insurer will want to see a CV, and usually require at
least 5 years relevant experience.
Differing activities warrant variable rates and premiums
being applied by insurers – detailed below are areas of
activity and most insurers general view of risk that attaches
to each area:
High Risk
Soil and Foundation work
Any form of survey or valuation work
Medium Risk
Civil Engineering
Structural Engineering
Low Risk
Mechanical
Electrical
Heating & Ventilating
Other areas of interest for underwriting purposes include:
Contract sizes. There is a direct relationship between the size and complexity of the job and the exposure.
Technology. Is the firm using 'cutting edge' technology or standard, tried and tested processes?
Overseas exposure. Does the practice carry out work for overseas clients? Careful consideration would be paid to such work carried out for US or Canadian clients.
Retroactive exposure. Does the practice have an exposure to claims arising from past work, whether in the current firm or a former practice?
Questions & Answers
I only undertake a little work for friends and family without charge?
It makes no difference whether as a professional person you provide advice for a fee, for benefits in kind or free of charge – you still have the same duty of care to their client and exposed to the same liabilities and can be sued for negligence.
Do I need cover for private work I do outside my employment?
Yes. Unless you are covered by your employer's PII for your own private work (which is highly unlikely) you will need to buy your own insurance.
I am employed by a practice so surely I do not have to worry about Professional Indemnity Insurance?
As an employee you need to be aware that if appropriate insurance is not in place then you could be responsible for outstanding liabilities at some time in the future. This potential liability was recently highlighted by the case of Merrett v Babb in the Court of Appeal. It is therefore important for employees to raise the issue with their employers and if necessary as part of your contract of employment.
Useful Links
DUTIES AND LIABILITIES OF CONSTRUCTION PROFESSIONALS
THE INSTITUTION OF CIVIL
ENGINEERS (ICE)
The Institution of Civil Engineers Royal Charter granted in 1828 aim was to promote the art and science of civil engineering – it has some 70,000 members
THE INSTITUTION OF MECHANICAL ENGINEERS (IMECHE)
The Institution has been the home of Mechanical Engineers for 150 years and has around 83,000 engineers world-wide as
members
INSTITUTE OF CIVIL ENGINEERS (ICE)
The ICE is an independent engineering institution. It was established in 1818, and has over 80,000 professionally qualified engineers worldwide
THE ENGINEERING COUNCIL (UK)
[EC(UK)]
Created on 22 March 2002, this is a direct successor of the chartered institution first established in 1982 to promote and regulate the engineering profession in the UK
INSURANCE
GUIDE FOR PROTECTING SMALL BUSINESSES
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