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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  • withdrawn from the market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:

Jon Weller profile picture
Jon Weller
3 years ago
Highly recommend Clarke Williams and especially Scott, who helped me find the best cover for both my construction businesses. Answered all questions promptly and helped explain everything easily. Great Service.
James profile picture
James
3 years ago
I received very good service from Clarke Williams and would certainly recommend. Graham was extremely thorough and efficient.
Rachel Gardner-Poole profile picture
Rachel Gardner-Poole
3 years ago
I found Scott Williams particularly helpful in getting my insurance setup for my new business.
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