How to Choose the Right Level of Cover & Indemnity Limits

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A UK guide to selecting appropriate insurance limits for construction and engineering projects

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Guidance backed by leading UK construction insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

WHY INDEMNITY LIMITS MATTER

Choosing the Right Level of Cover

Selecting appropriate indemnity limits is critical. Limits that are too low may breach contract requirements or leave your business exposed, while over-insuring can increase premiums unnecessarily.

Common Indemnity Limits in Construction

Typical ranges seen across UK construction and engineering contracts.


  • Employers’ Liability: £5m (legal minimum) to £10m+
  • Public Liability: £2m, £5m or £10m+
  • Contract Works: Full contract value
  • Plant & Equipment: Replacement value
  • Environmental Liability: £1m to £10m+

Professional Indemnity (PI) Limits Explained


  • PI limits often required by contract or client
  • Common limits: £250k, £500k, £1m, £2m, £5m+
  • Design & build work increases PI exposure
  • Claims can arise years after project completion
  • Run-off cover often required post-completion

Factors That Influence Required Cover Levels


  • Contract type (JCT, NEC, bespoke)
  • Project value and duration
  • Nature of works and risk profile
  • Client, funder or framework requirements
  • Public interface and third-party exposure

Why Choose Insure24?


  • Specialist construction & engineering advisors
  • Support interpreting contract insurance clauses
  • Access to flexible limits and specialist markets
  • Advice balancing risk, compliance and cost
  • UK-based claims and technical support

FREQUENTLY ASKED QUESTIONS

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How do I know if my indemnity limits are sufficient?

Your indemnity limits should meet contractual requirements and reflect the maximum foreseeable loss from a single claim. Professional advice is recommended for complex projects.

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Are higher limits always better?

Not always. Higher limits increase premiums and should be selected based on contractual needs, project risk and financial exposure.

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