The global insurance market is experiencing a hardened market cycle. Australia has been hit particularly hard due to limited competition among insurers, a history of under-priced insurance products, and high-profile project failures in certain industries. All these factors are leading to issues with the affordability and availability of professional indemnity insurance (PII).
As the peak body and trusted voice of the profession, Engineers Australia recognises that the current insurance situation is not sustainable. We are working proactively to address the problems faced by the profession and to develop and facilitate possible solutions.
We have developed a three-staged action plan (PDF) to guide the activities needed to support our members and improve the risk profile of the profession.
- Stage one: includes short term goals such as forming partnerships with key stakeholders, organising industry discussions to focus on the most affected engineering sectors ad helping members gain a better understanding of the insurance market.
- Stage two: is set for the medium term and will include working with insurers to identify key risk area and develop risk management protocols, and encouraging insurers to determine fair risk allocation linked to Engineers Australia's membership grades.
- Stage three: the long term plan is to promote a culture shift surrounding risk allocation and accountability in targeting engineering industries.
To inform Engineers Australia's ongoing advocacy work in the PII space, we would like to hear from you about your experience with PII. To provide your feedback, email [email protected]
Continue to check back to this page for updates on Engineers Australia's work and progression with PII in Australia.
- Preventative Law Series: helping engineers manage personal liability
This series of webinars aims to show how to use preventative law and associated techniques. Across three sessions running from 28 September–1 December 2021, you will explore engineering contracts, avoiding negligence liability and the importance of relationships and communication in engineering projects.
What is the future prospect for PI insurance and engineers?
Leaders from the Insurance Council of Australia, Consult Australia and Engineers Australia provide engineers an update on the relevant work underway to improve the PII situation. Available to view via EA OnDemand.
- Professional Indemnity Insurance (PII) information sheet and checklist (PDF)
- PI insurance in engineering: beyond the rising premiums
- Guide for design practitioners and engineers: contract terms, professional indemnity insurance and the Design and Building Practitioners Act 2020 (PDF)
- Practice guide: façade and external wall fire safety design (PDF)
- Insurance articles and information – EngInsure