Why is Professional Indemnity Insurance for Engineers So Expensive?
Professional Indemnity (PI) insurance for engineers has become increasingly expensive in recent years, particularly for those involved in higher-risk areas such as fire safety, cladding, or basement design. Many firms are seeing significant premium increases at renewal, often with reduced cover or additional restrictions.
So why is this happening and what can you do about it? For a tailored quote or review, see our Professional Indemnity Insurance for Engineers page.
Why premiums have increased
The key reason is simple: The insurance market for engineers’ PI is still limited
Following high-profile losses and regulatory changes (particularly around fire safety and construction), many insurers have:
- withdrawn from the market
- reduced their appetite for certain risks
- imposed tighter underwriting criteria
This has created: Less competition and higher pricing
High-risk areas drive pricing
Certain activities now attract much greater scrutiny from insurers, including:
- Fire safety and cladding work
- Basement and substructure design
- High-rise or complex projects
- Design & build or turnkey responsibilities
Even if these only form a small part of your work, they can significantly impact your premium.
Cover is no longer automatic
Historically, many policies would include broad cover as standard.
Now:
- These areas are often excluded initially
- Or only offered with:
- inner limits
- endorsements
- strict conditions
This is why two quotes can look very different.
Why engineers are seeing restrictions
Insurers are focusing heavily on:
- past claims experience
- type of work undertaken
- contractual obligations
- risk management procedures
If there is uncertainty, they will either increase premium or restrict cover
What can you do?
While the market is challenging, there are still ways to improve your position:
- Present your risk clearly (proposal forms matter)
- Highlight project controls and QA processes
- Review contracts before agreeing terms
- Work with a broker who understands engineering risks
The cost of PI insurance for engineers is unlikely to return to previous levels in the short term. However, understanding how insurers assess risk — and presenting your business correctly — can make a significant difference to both pricing and cover.
If your renewal has increased or cover has been restricted, we’re happy to review your current terms. Send your policy or renewal details to info@clarkewilliams.co.uk or speak to our team for a no-obligation review.
Further Reading
If you’re reviewing your Professional Indemnity Insurance, the following guides may also be useful:
- Professional Indemnity Insurance Assignments Explained
- Fire Safety PI Insurance – Why 21 December 2018 Changed Everything
- How to Choose the Right Limit of Indemnity for Professional Indemnity Insurance
- How the Building Safety Act Relates to Insurance
- Understanding Collateral Warranties in Insurance
- Understanding Your Professional Indemnity Insurance Contract




