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PROFESSIONAL INDEMNITY FOR DESIGN, DRAWINGS & SPEC RISK
Why Metal Fabricators Need Professional Indemnity Insurance
Metal fabrication is often viewed as a “make and supply” trade - but in reality many fabricators provide technical input that influences the final outcome. You might interpret drawings, propose substitutions, select materials, advise on fixings, create shop drawings, produce fabrication details, confirm tolerances, or help solve site problems when the design doesn’t quite work in practice.
The moment you provide advice, design input, drawings, calculations, specifications or sign-off, you can create a professional duty of care. If a client alleges that your advice or design caused them loss - even when no one is injured and nothing is physically damaged - that claim is typically not a public/products liability claim. That’s where Professional Indemnity (PI) comes in.
Insure24 arranges PI cover specifically suited to fabrication businesses - including architectural metalwork, sheet metal, structural elements, guarding, plant housings, platforms, stairs, handrails, balustrades and bespoke assemblies. We help you combine PI with the rest of your manufacturing insurance so your cover matches the way you actually work.
What Professional Indemnity Covers for Metal Fabricators
Professional Indemnity insurance is designed to protect your business if you are accused of making an error in professional services - such as a mistake in design, drawings, specification, advice, or documentation - that causes a client financial loss.
PI commonly responds to allegations such as: “your drawings were wrong”, “you specified the wrong material”, “you advised the wrong fixing method”, “the tolerances caused an installation failure”, “your design created rework cost”, or “your sign-off caused us to proceed and incur loss”. These claims can be expensive even when they are unfounded, because the cost is often in expert reports, engineers, solicitors and project delay.
In metal fabrication, PI is particularly relevant where you supply: shop drawings, fabrication drawings, bespoke design proposals, value engineering, design-and-build packages, or any form of design responsibility in contract terms.
- Claims for negligence, errors or omissions in professional services
- Design, drawings and specification mistakes (including tolerances and detailing)
- Allegations of faulty advice, interpretation or sign-off
- Legal defence costs, experts and investigation expenses
- Cover for claims made during the policy period (claims-made basis)
Design, Drawings & “Shop Drawing” Liability
Many fabrication businesses produce shop drawings to translate a concept into something that can actually be manufactured and installed. Shop drawings can include dimensions, interfaces, hole positions, weld symbols, material thicknesses, edge distances, load assumptions, finish notes, and assembly sequences. Even if the original design comes from an architect or engineer, the act of producing drawings can create professional exposure.
Examples of situations that often trigger PI concerns include:
• You receive incomplete or ambiguous drawings and “fill the gaps” to keep the project moving.
• You propose a change (value engineering) that reduces cost but later causes performance issues.
• You set tolerances that work in the workshop but fail at installation due to site constraints.
• You interpret a specification incorrectly and fabricate to the wrong standard or finish.
• Your drawings are used by installers and a measurement error causes rework and delay costs.
PI insurance is designed for these “professional service” exposures - it protects you when the allegation is about design/documentation/advice, rather than physical injury or damage.
- Protection when clients rely on your drawings and technical documents
- Suitable for design-and-build and design-assist scopes
- Covers allegations related to tolerances, interfaces and detailing
- Useful for architectural metalwork, platforms, stairs, balustrades and bespoke assemblies
- Supports tender and contract requirements where PI is mandatory
Specification Risk: Materials, Grades, Finishes & Compliance
Fabrication projects can fail due to specification problems rather than workmanship. A small specification error can lead to major cost: a wrong stainless grade for a coastal environment, an unsuitable coating system, incorrect fixings, incompatible metals causing galvanic corrosion, or a finish that doesn’t meet a client’s aesthetic or durability requirements.
If you recommend or specify materials and finishes - even informally via email - you can create professional liability exposure. PI insurance helps protect your business if the client alleges your advice caused them financial loss.
Professional Indemnity is particularly relevant where you: advise on coatings/powder coating specs, propose substitutions, provide technical sign-off, or work on safety-related installations such as handrails, guarding, platforms, stairs, and public-facing structures.
- Errors in material selection, grade, thickness or compatibility
- Incorrect finish systems, coating specs or durability assumptions
- Misinterpretation of standards, drawings or client requirements
- Design responsibility in value-engineering or substitutions
- Claims involving rework costs, delay costs and professional disputes
Professional Indemnity vs Public & Products Liability
A common misunderstanding in manufacturing is assuming that public/products liability covers “everything”. Liability insurance generally responds when there is bodily injury or property damage caused by your activities or products. Professional indemnity responds when the allegation is about professional services causing financial loss.
For example:
• If a fabricated bracket fails and damages property, products liability may respond (subject to policy terms).
• If your drawing dimension is wrong and causes rework costs and delay, PI is usually the relevant policy.
• If a client says your advice led them to choose the wrong specification and they incurred replacement costs, PI is often required.
• If an installer is injured due to a defective product, products liability may be involved.
• If there’s a dispute about design responsibility and contractual sign-off, PI becomes central.
Many metal fabricators need both covers - and the important part is structuring them so there is no “gap” between design responsibility and product/workmanship exposure.
- Liability = injury/property damage; PI = financial loss from professional services
- PI supports disputes over drawings, advice, sign-off and specification
- Ideal for design-assist, shop drawings and value engineering
- Helps reduce uninsured exposures in complex fabrication contracts
- We can arrange combined packages covering both exposures appropriately
Who Should Consider PI in Metal Fabrication?
Professional Indemnity isn’t only for engineering consultancies. Many fabrication businesses provide professional services without realising it. If your business does any of the activities below, PI should be considered - and in some sectors it is required contractually.
You should consider PI if you:
• Produce shop drawings or fabrication drawings that installers rely on
• Provide design or detailing for stairs, balustrades, platforms or safety-related structures
• Offer value engineering or propose substitutions to materials and fixings
• Provide technical sign-off, calculations or advice on performance
• Provide CAD/CAM outputs that control CNC processes or interfaces
• Work on bespoke one-off builds where “fit for purpose” disputes are common
• Take responsibility for design under “design and build” or “design assist” contract terms
If you’re unsure, we can review your contracts and scope at a high level and advise whether PI is needed and what limit is sensible.
- Architectural metalwork: balustrades, stairs, balconies, railings and bespoke installations
- Sheet metal: enclosures, ducting, panels, guards and assemblies
- Fabricators producing CAD drawings and fabrication details
- Businesses offering design-assist, design-and-build or value engineering
- Suppliers asked for PI by main contractors, OEMs or public sector buyers
Key Policy Features to Get Right
PI is a specialist cover and it works differently to many other business insurances. It is commonly written on a claims-made basis, meaning the policy that responds is usually the one in force when the claim is made (not when the work was performed). This makes continuity of cover and the correct “retroactive date” important.
There are also common areas where fabrication businesses can be caught out: inappropriate activity descriptions, not declaring design responsibility, unclear contract wording, incorrect limits, and not aligning PI cover with products liability where there is overlap.
We’ll help you structure PI properly, including: limit selection, excess options, retroactive date, scope of professional services, and any required endorsements for your client contracts.
- Correct description of your professional services (design, drawings, advice)
- Appropriate limit of indemnity for contract requirements
- Retroactive date and continuity (critical for long-tail claims)
- Contractual liability considerations and reasonable sign-off processes
- Alignment with public/products liability to reduce coverage gaps
How Much PI Cover Do Metal Fabricators Need?
The right limit depends on the size and nature of your projects, and how much downstream cost your drawings or advice could influence. Some small fabricators choose £100,000 to £250,000 for lower-risk advisory work. Others require £500,000, £1,000,000, £2,000,000 or more because they operate in commercial construction, public-facing settings, or higher-risk installations.
To choose a limit sensibly, we look at: your contract values, the cost of potential rework/delay, who relies on your drawings, whether your work is safety-critical, the number of stakeholders on a project (architects, engineers, main contractors), and how disputes are likely to unfold.
PI claims are often driven by professional dispute and expert analysis - so even a “small” claim can become expensive. We’ll help you balance premium cost with realistic risk.
- Limits aligned to project values, tender requirements and exposure
- Ideal for fabricators working on complex or bespoke one-off installs
- Useful for shop drawings relied upon by installers and contractors
- Protects against professional disputes, rework and delay allegations
- We can advise on limits based on your scope and typical contracts
How to Reduce PI Claims and Improve Insurer Confidence
Insurers price PI based on the nature of your professional services, your processes, and how you control design risk. The strongest fabricators combine technical capability with documented processes - not because paperwork is fashionable, but because it reduces misunderstandings and disputes.
Practical steps that can reduce PI exposure include: clear scope statements, version control on drawings, documented approvals, defined tolerances, written assumptions, and clarity on who is responsible for final design sign-off.
Even small improvements can help: storing emails, capturing approvals, tracking revisions, and ensuring “as built” documentation is retained. These steps also help if you need to defend a claim.
- Clear scope: what you are responsible for vs what you are not
- Drawing controls: revision management, approvals and sign-off trails
- Documented assumptions: tolerances, interfaces and installation constraints
- Quality checks: peer review of critical details and measurements
- Contract awareness: avoid accepting unreasonable design liability by default
How to Get a PI Quote for Metal Fabrication
PI underwriting focuses on what professional services you provide - and how you manage that risk. When you request a quote, we’ll ask a few targeted questions that help underwriters understand your scope clearly.
Typical information includes: your turnover and split between fabrication and design services, the type of drawings you produce, whether you sign off design responsibility, contract types (supply-only vs supply-and-fit), typical project size, and any prior claims or disputes.
If you also need public/products liability, employers’ liability, workshop cover, tools, stock, and business interruption, we can arrange a combined package so your PI sits neatly alongside your operational covers.
- 1. Confirm your professional activities (drawings, advice, design-assist)
- 2. Share contract requirements and typical project values
- 3. Choose an appropriate limit and excess
- 4. Set continuity/retro date and align cover with your liabilities
- 5. Receive documents for tenders, onboarding and contract compliance
Our PI policy was essential when a client alleged our shop drawings caused rework and delay. Insure24 helped us structure cover properly and guided us through the claim process.
Operations Director, UK Metal Fabrication BusinessPROTECT YOURSELF
- Legal defence costs and expert fees if your drawings or advice are challenged
- Financial loss claims arising from design errors, omissions or incorrect specifications
- Support for contract-driven PI requirements in construction and manufacturing supply chains
- Continuity protection for long-tail claims via correct retroactive dates
- Better alignment between design responsibility and public/products liability exposures
Compliance & Contract Requirements
PI is often requested in supplier onboarding, framework agreements, and construction contracts - especially where you provide design assistance, shop drawings, calculations, or specification advice. Clients may also require confirmation of PI limits, retroactive dates, and continuity.
We help you structure PI so it supports real-world contract expectations without overpaying for cover you don’t need. If you are asked to accept extensive design responsibility, we recommend reviewing the contract terms carefully and ensuring your policy scope matches.
- PI often required for design-assist and design-and-build scopes
- Limit levels (e.g., £250k to £5m+) may be set by contract
- Claims-made basis: continuity and retro date are critical
- Document control and approvals can reduce disputes and premiums
- We can align PI with liability covers to reduce coverage gaps
FREQUENTLY ASKED QUESTIONS
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What is Professional Indemnity insurance for metal fabricators?
Professional Indemnity (PI) insurance protects metal fabrication businesses if a client alleges your professional services caused them financial loss.
This can include errors or omissions in design, drawings, specifications, advice, interpretation of requirements, tolerances, or technical sign-off.
PI is typically needed when you provide shop drawings, design-assist input, value engineering, calculations, or specification advice.
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Is PI the same as public/products liability?
No. Public and products liability generally responds to claims for bodily injury or property damage. Professional indemnity responds when the allegation is
about professional services (such as drawings, advice or specification) causing financial loss - for example rework costs, delay costs, or redesign expenses.
Many fabricators need both covers to avoid gaps between design responsibility and product/workmanship exposures.
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When does a fabricator become “responsible for design”?
Design responsibility can arise when you produce drawings used for manufacture/installation, propose substitutions, provide value engineering,
specify materials/finishes, advise on fixings, confirm performance assumptions, or sign off details. It can also be imposed by contract wording,
even where you believe you are “just fabricating”. If your contracts include design-and-build or design-assist obligations, PI is commonly required.
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What limit of PI cover do I need?
The right limit depends on project values, contract requirements, and the potential downstream cost of a drawing/specification error.
Some businesses choose £100k–£250k for low-risk advisory work, while construction supply chains often require £500k, £1m, £2m or more.
We can help you select a sensible limit based on your typical contracts and scope of professional services.
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Why are retroactive dates and continuity important?
PI is commonly written on a claims-made basis, meaning the policy in force when the claim is made usually responds.
The retroactive date controls how far back your work is covered. If you change or cancel PI without maintaining continuity, you can create gaps.
We help you structure PI with the correct retroactive date and ongoing cover so long-tail claims are properly protected.
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What is not typically covered by PI?
Exclusions vary by insurer, but PI policies commonly exclude deliberate acts, known circumstances, fines/penalties, and certain contractual liabilities
beyond the duty of care you would have in law. Some policies may restrict “fitness for purpose” obligations or certain design activities unless disclosed.
It’s important that your declared professional services match what you actually do to avoid disputes at claim stage.
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How can a metal fabricator reduce PI risk?
Strong document control reduces disputes. Useful measures include: clear scope statements, drawing revision control,
documented approvals, written assumptions, defined tolerances, peer review of critical details, and keeping records of emails and sign-offs.
These steps help prevent misunderstandings and provide evidence if a claim arises.
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Can PI be combined with the rest of my fabrication insurance?
Yes. Many metal fabrication businesses carry PI alongside public/products liability, employers’ liability, workshop/property, tools, stock and business interruption.
We can arrange a joined-up insurance programme so your design/drawings exposure and your operational risks are both properly covered.