The risk and exposure you face as an expert in construction, development, civil engineering, and other construction occupations, are not just physical , but can also include risk relating to design faults, construction defects, health & safety risks and regulatory compliance. These risks are often overlooked by busy business owners in the construction and civil engineering occupations.
As your skills are highly admirable and essential , clients will seek out your services and expertise which will inevitably expose you to a variety of risks. As a civil engineer, it’s important to protect yourself and your business from unexpected legal issues and financial losses. This is not something you need to worry about when you have the right insurance policy in place – and this comes in the form of Professional Indemnity insurance.
Managing your risks lets your clients know they can trust you when using your services, and we’ve provided all the essential facts you’ll need to know about Professional Indemnity insurance for your business in construction or civil engineering.
What Is Professional Indemnity Insurance for Civil Engineers?
Professional Indemnity insurance is aimed at protecting businesses that provide specialized services and advice – such as accountants, architects, real estate agents, bookkeepers, and off course, Civil Engineering.
Professional Indemnity (PI) insurance will shield you from the risk that is inevitable when working with the public in your occupation within the civil engineering industry. PI insurance is designed to mitigate claims made against you and your business that result in loss due to negligence (actual or alleged), failure to deliver your specialized services, etc.
Professional service providers are at special risk when it comes to legal claims and alleged failure to provide their service, which makes this insurance type a valuable asset in the operations of business owners in South Africa.
Civil Engineering Risks Requiring Insurance Coverage
Within the field of construction and development, your civil engineering projects are unique and present a vast variety of risks and liabilities that are involved in every aspect of your business operations. Being an expert does not mean you are absolved from potential mistakes or incidents. There are several types of incidents that may require insurance coverage, such as:
- Design or construction defects, including design faults or omissions
- Miscommunication or misunderstandings with clients or contractors
- Negligent or incorrect advice
- Incorrect assessment or evaluation
- Failure to advise or evaluate
- Property damage / personal injury
Small claims related to these incidents can be easily mitigated and handled when Professional Indemnity insurance is in place. Most Professional Indemnity policies will also help you through the process of a claim, making the entire ordeal quick and as pain-free as possible.
In addition, a claim may have associated fees, such as investigation and legal defence costs – and without the aid of cover, your business will be at the financial mercy of any legal costs involved with settling any claim.
How Much Professional Indemnity Cover Do you Need as A Civil Engineer
The amount of coverage for your policy will depend on the unique business factors and risks that you are exposed to.
Here are several factors that will determine the extent of your Professional Indemnity insurance coverage:
- What is the collection of risks you face in your business operations, and what are all the situations that expose you to liability?
- The value of your professional services businesses (annual revenue)
- The value of the projects you work on
- The size of your practice, including number of employees
- The requirements for civil engineering projects within your industry
- And other requirements for civil engineering projects through official professional bodies
For any growing business, risk management is one of the most important parts of your business plan, analyzing and monitoring for new and evolving challenges your business may face during the growth of your operations.
Factors to Consider When Choosing Professional Indemnity Insurance
- Cost of the insurance coverage: While it’s important to find an affordable policy, it’s also important to avoid sacrificing coverage for cost. The right protection is essential for mitigating the financial impact of a claim, so it’s worth paying a little extra for peace of mind and a policy that provides the necessary level of coverage.
- Scope or level of coverage needed: It’s vital to choose a policy that provides the right level of coverage based on the specific risks your business is exposed to. Make sure the coverage includes the specific incidents and risks you face as a civil engineer.
- Exclusions in the policy: Read the policy carefully to understand what’s not covered, so you know what risks you’ll still be responsible for.
- Claims process and support: Choose an insurance company that provides clear and easy-to-follow instructions for the claims process, and that has a team available to support you in the event of a claim.
- Policy exclusions and limitations. Ensure you understand your policy exclusions and limitations, because it’s important to carefully review the wording of any policy being considered. This will help ensure that your policy provides the necessary protection to avoid any unpleasant surprises in the event of a claim
- The size of the practice: The size of your practice should also be taken into account when choosing your professional indemnity insurance policy. A larger practice will have more complex insurance needs and may require a more comprehensive policy.
We all know that no matter how much progress is made, one large hit to our finances can cause massive disruptions in business operations. This is why Professional Indemnity insurance is one of the first things business owners in this industry secure and closely monitor. Take the time to research your options, understand the coverage, and choose a policy that meets your needs.
The Best Cover With Bi-Me
Bi-me was formed by seeing the need small businesses and SMEs faced when it came to affordable and accessible insurance. Large insurance institutions don’t like taking the risk of insuring small businesses – and at Bi-Me, we’ve worked around that archaic model.
Find the most competitive and affordable quotes within minutes with our easy-to-use online platform that lets you tailor your results for your exact occupation.
Contact us for in-person communications to sort out any further queries and concerns through our convenient online Contact portal.
*This is general information only and does not take into account your financial situation, needs, or specific objectives. As with any insurance, the cover will be subject to the terms, conditions, and exclusions contained in the policy wording.