professional indemnity insurance

N

newbee2

Guest
I'm currently working in full-time employment as an engineer but have come across an opportunity for a nice little earner on the side. It would'nt conflict with work so there should be no problem there. However, I've been told that I will need to get P.I.I. for €2,000,000. To me this seems like a very high figure for low risk work, but how and ever. My question is how does one go about getting such cover and anybody got an idea as to what the premium might be?

Thanks all replies appreciated.
 
You would need to contact one of the larger brokers - we use AON for ourselves. We are required to hold a PI of 6.5m which is massive, and also expensive, but they can organise installment payments.

The questionaire you would need to fill out is extremely detailed so put some time aside for that.

I can't give you a ball park figure as it really depends on how long you're chartered, your experience, the type of job you will be undertaking. It's a how long is a piece of string question.

First stop, call a professional and get some good advice
 
PI Insurance

A firm who deals for members of the Institution of Engineers are Griffiths & Armour. Their number is 01 7996210.

This insurance tends to be expensive. Depending on the individual / organisation for whom you are working, you could organise that you are covered under the employing firms blanket PI policy (if they have one).
 
Re: PI Insurance

Sorry, I meant to say, your best bet might be to contact the IEI (Institution of Engineers in Ireland) or the ACEI (association of consulting engineers in Ireland) both of which have dot ie addresses.

You could ask is there anybody prepared to offer you advice, or to be put in touch with an engineer in your area - their advice on setting up your own practice would be invaluable.

My best advice to you would be not to sell yourself short - especially when you're just setting out, it will make it hard to set realistic fees in the future. Also, engage the services of a very good solicitor and accountant, who will give you a great fall back.

HTH & best of luck in your new venture
 
Thanks lads/lassies for the replies. I've been on to the IEI and subsequently Griffith and Armour but the figures seem particularly high. I have since had an idea that would allow me to kick start the process without having to outlay too much money before I know how lucrative this venture is. The work could be done in conjunction with an established architect under his/her insurance, assuming they are in agreement. I would do the work for a lower premium to compensate for this. Could this be done? Has anybody followed such a route.
 
PI Insurance

There are a few fairly large engineering/architectural firms in the country who have a blanket policy covering their work. This policy covers both full time employees and individual sub-contractors (whether Sole Trader or Limited Company).

Be careful about offering a lower fee, the blanket policy of the architects firm won't change just because they hire one extra person.
 
Public Liability Insurance

By the way, you'll probably need Public Liability Insurance.
 
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