Architects and engineers sit at the centre of construction risk. Your drawings, calculations, specifications, site inspections and professional advice influence safety, buildability, compliance and cost. When something goes wrong—cracks, water ingress, cladding issues, structural movement, fire safety non-compliance, delays or budget overruns—claims often follow the professional trail back to the design team.
Professional indemnity (PI) insurance is built for that reality. It helps protect your practice if a client alleges negligence, breach of professional duty, misrepresentation, or errors and omissions in your professional services. In the UK, PI is also commonly required by:
Clients and funders (as a contract condition)
Main contractors and framework agreements
Professional bodies and regulators
Landlords, developers and public sector buyers
This guide explains what PI for architects and engineers typically covers, what it doesn’t, how to choose limits and extensions, and how to present your risk well to insurers—especially in today’s tighter construction PI market.
Professional indemnity insurance covers your legal defence costs and potential compensation if a third party (usually your client) claims they suffered a financial loss because your professional services were negligent or inadequate.
For architects and engineers, “professional services” can include:
Design, drawings, calculations and specifications
Advice, reports, surveys and feasibility work
Project management and contract administration
Site inspections and certification (where applicable)
Value engineering recommendations
Building regulations guidance and compliance advice
Coordination with other disciplines (MEP, structural, fire, façade, civils)
PI is generally written on a claims-made basis. That means the policy in force when the claim is made (and notified) responds—provided you have continuous cover and the claim relates to work done after the relevant retroactive date.
PI is only one part of a construction risk programme. It’s often confused with other covers:
Public liability (PL): covers injury or property damage to third parties caused by your business activities (e.g., a visitor trips in your office). It usually does not cover pure financial loss from professional advice.
Employers’ liability (EL): covers injury/illness claims from employees.
Contract works (CAR): covers physical damage to the works during construction (usually arranged by the contractor or employer).
Structural warranty / latent defects insurance: long-term cover for certain defects, usually for residential or funded projects.
Directors’ & officers’ (D&O): covers management liability, not design negligence.
In practice, an architect or engineer may need PI plus PL/EL as core covers. Depending on your activities, you may also need cyber, management liability, and (for larger practices) office insurance and business interruption.
While wordings vary, PI policies commonly respond to claims arising from:
Examples:
Incorrect structural calculations leading to remedial works
Inadequate drainage design causing flooding and property damage
Poor detailing leading to water ingress and mould
Incorrect specification leading to premature failure of materials
Missing key information on drawings
Coordination errors between disciplines
Incorrect setting out information
Failure to meet the standard of care expected of a competent professional
A client alleges they relied on inaccurate statements in a report or proposal
Solicitors, experts, court costs and (often) alternative dispute resolution costs
Some policies include limited cover for loss, damage or destruction of documents, including electronic data—often with sub-limits.
Some PI policies include cover for unintentional infringement of copyright in professional materials, again often limited.
Insurers look closely at the types of projects you work on and the nature of your role. Common triggers include:
Fire safety and cladding-related allegations (especially on multi-occupancy residential)
Basement and underpinning movement claims
Water ingress and façade performance disputes
Structural cracking, deflection, vibration and serviceability issues
MEP coordination errors causing rework and delay
Delay and disruption claims linked to design changes or late information
Cost overruns where advice is alleged to be negligent
Certification disputes (e.g., sign-off statements, practical completion advice)
Even where you believe you did nothing wrong, the cost of defending a claim can be significant. PI is as much about funding the defence as it is about paying damages.
Understanding exclusions is just as important as understanding cover. Common exclusions include:
If you knew about an issue before the policy started and didn’t disclose it, insurers may decline.
If you agree to onerous contract terms (e.g., fitness for purpose, unlimited liability, collateral warranties with broad obligations), you may create liabilities PI won’t fully pick up.
Many PI policies exclude liabilities you assume by guaranteeing an outcome rather than providing reasonable skill and care.
Often excluded or heavily restricted.
Typically excluded.
Regulatory fines are often excluded.
Intentional wrongdoing is excluded.
PI is primarily for financial loss. Some policies provide limited cover for property damage arising from professional negligence, but it’s not universal. This is a key point to check.
If a ransomware incident causes project delays or data loss, PI may not respond unless you have cyber cover or a specific extension.
Because PI is claims-made, continuity is everything.
Your policy may show a retroactive date (sometimes “unlimited” or “full prior acts”). Claims arising from work done before that date may not be covered.
If you retire, close the practice, merge, or stop offering services, you still need PI run-off to cover claims made later. Construction defects can take years to emerge.
If you become aware of a circumstance that could lead to a claim (e.g., a client complaint, a defect allegation, a dispute letter), notify your insurer early. Late notification can prejudice cover.
Limits are often driven by contract requirements, but you should also consider your real exposure.
Factors to weigh:
Project size and complexity
Your scope (lead designer vs sub-consultant)
Contractual caps and collateral warranties
Number of projects running concurrently
Potential aggregation (multiple claims from one issue)
Defence cost treatment (costs “in addition” or “inclusive”)
Any one claim: the limit applies per claim (subject to policy terms)
Aggregate: the limit is shared across all claims in the policy year
For construction professionals, “any one claim” is often preferred where available, but pricing and insurer appetite may influence options.
PI excesses can be meaningful in construction. A higher excess can reduce premium, but it also means you must fund more of the claim costs before insurers contribute.
Practical tip: choose an excess you can comfortably pay without disrupting operations—especially as defence costs can build quickly.
Depending on your practice, these add-ons can be valuable:
Collateral warranty / duty of care deed cover (where available)
Contract review support (risk management helplines)
Loss of documents (higher sub-limit)
Innocent non-disclosure (helps protect partners/directors)
Mitigation costs (costs to prevent a claim escalating)
Dishonesty of employees (limited, for civil liability)
BIM and digital design extensions (where offered)
Worldwide jurisdiction (if you work outside the UK)
Always check the wording: extensions vary widely.
Construction PI has been a challenging market, and insurers are selective. Expect questions on:
Percentage of turnover from residential (especially multi-occupancy)
Cladding, fire safety, EWS1 involvement, façade design
Basements, underpinning, retaining walls
Structural engineering on higher-risk buildings
Design & build roles and novation
Use of subcontractors and appointment terms
Quality assurance processes and peer review
Claims history and any notifications
Being prepared with clear, consistent information can materially improve outcomes.
Insurers reward good process. The following also genuinely reduces disputes.
Define deliverables and exclusions
Record assumptions (e.g., ground conditions, existing structure)
Confirm what you are not responsible for
Avoid fitness for purpose obligations
Seek reasonable liability caps
Be cautious with broad collateral warranties
Ensure payment terms and dispute resolution are clear
Independent checks for critical calculations
Formal design review stages
Documented sign-off
Track design changes and client instructions
Confirm impact on programme and cost
Version control for drawings/models
Clear issue sheets and transmittals
Retain records for the long term
Define frequency and limitations of inspections
Avoid language that implies full-time supervision if not provided
Use written appointments
Ensure their PI is adequate and current
Flow down key terms and responsibilities
Your appointment terms can make or break a PI claim.
Watch for:
Net contribution clauses: can help limit exposure to your share of blame
Proportionate liability wording: reduces “deep pocket” risk
Collateral warranties: confirm you can comply and your PI supports them
Novation: clarify responsibilities pre- and post-novation
Limitation periods: align with your record retention and run-off plans
If you’re asked to sign bespoke terms, it’s worth having them reviewed. A small contract change can create a large uninsured exposure.
To quote PI for architects/engineers, insurers typically ask for:
Turnover (last year, current year estimate, next year forecast)
Services provided (design, PM, CA, inspections, certification)
Split of work by sector (commercial, industrial, residential, public)
Largest projects and typical contract values
Use of standard forms (e.g., RIBA, ACE) vs bespoke
Claims/notifications history (5 years is common)
Risk controls (checking, QA, contract review)
Tip: be consistent across proposal forms. Underwriters dislike gaps, contradictions, or vague answers.
There’s no single price. Premium is influenced by:
Turnover and fee income
Claims history
Project types and “higher risk” exposure
Limit of indemnity and excess
Contract terms and collateral warranties
Location and jurisdiction
Experience of principals and staff
If you’re a small practice, the best value often comes from matching the limit to real contractual needs, tightening your scope and contracts, and clearly evidencing your QA.
There isn’t a single universal law that forces every architect to hold PI at all times, but PI is commonly required by clients, lenders, and professional expectations. Many practices find it commercially essential.
If you provide professional advice, design, calculations, specifications, or reports, PI is typically a core cover. Many contracts require it.
“Any one claim” applies per claim, while “aggregate” is shared across all claims in the policy year. The right choice depends on your risk profile and budget.
Some insurers restrict or exclude certain fire safety and cladding-related exposures, especially on higher-risk residential. This is an area to discuss early when arranging cover.
Run-off is PI cover after you stop trading to protect against future claims from past work. The appropriate duration depends on your projects, contracts and limitation periods. Many professionals maintain run-off for several years.
Not if you maintain continuous claims-made cover with appropriate retroactive terms. Always check the retroactive date and ensure there are no gaps.
Professional indemnity insurance is one of the most important protections for architects and engineers. It supports you when a dispute arises, funds a robust defence, and helps you meet client and contract requirements.
If you want a quote or a quick review of your current PI terms, it helps to have your turnover, a breakdown of your project types, your largest contract values, and any contract requirements to hand.
Call Insure24 on 0330 127 2333 or visit https://www.insure24.co.uk/ to discuss professional indemnity insurance for architects and engineers.
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