Professional Indemnity for Engineers
Published: Monday, 16 February 2026
Engineers Are Seeing a Shift in the Professional Indemnity Market - Here’s Why
For years, Professional indemnity insurance for engineers has been a challenging topic for all engineering firms. Premiums increased sharply, policy wordings became more restrictive, and insurers tightened their appetite for anything perceived as higher risk. Most engineers have found renewals feel less like a review and more like a negotiation. However, the market is now beginning to shift, and for engineers, this change matters. This blog explores why now is the perfect time for engineers to take advantage of opportunities the soft market creates.
What is a Softening Insurance Market?
A softening Professional Indemnity market refers to a change in insurer behaviour. In simple terms, insurers are becoming more willing to write engineering risk again. Capacity is returning to the market, competition between insurers is increasing, and underwriters are showing greater flexibility in how they assess risk. For engineering firms, this can result in:
- More competitive premiums at renewal
- Improved insurer appetite for complex or specialist work
- Higher available limits of indemnity
- Greater flexibility around policy terms and conditions
Crucially, a softening market is not just about price; it is about better-quality cover.
Fewer Restrictions, Clearer Cover
During a hard market, PI policies often become saturated with exclusions such as fire safety, bodily injury and property damage. They also include restrictive endorsements and conditions that significantly limit cover. These can include blanket exclusions for certain types of work, onerous notification requirements, or wording that leaves little room for interpretation when a claim arises.
As the market softens, insurers are more open to removing or relaxing these restrictions. This can mean:
- Reduced reliance on broad exclusions
- Clearer policy intent
- Cover that better aligns with contractual obligations
For engineers, this clarity is critical. A policy that looks competitive on price but fails to respond when a claim arises offers little real protection.
Why This Matters for Higher-Risk Engineering Disciplines
The benefits of a softening PI market are most significant for engineers working in moderate to higher-risk disciplines, such as civil, structural, M&E, design & build, HVAC, plumbing and electrical. Rather than being forced into generic, off-the-shelf policies, firms can now access bespoke cover that better reflects their actual services, experience, and risk profile.
Bespoke Cover vs Off-the-Shelf Policies
One of the most overlooked advantages of a softening market is the opportunity to move away from rigid, standardised policies.
With improved insurer appetite, it becomes possible to:
- Align policy definitions with actual services provided
- Address specific contractual requirements
- Reduce gaps created by generic exclusions
- Structured cover that supports growth into new areas of work
This approach is particularly valuable for firms evolving their service offering or taking on more complex projects.
Are There Any Risks in a Soft Market?
While a softening market brings opportunity, it is not without its risks. Increased competition can sometimes lead to policies that appear attractive on price but quietly reintroduce limitations elsewhere. Engineers should remain cautious of:
- Policies that trade premium reductions for narrower cover
- Inexperienced insurers entering the market without a long-term commitment
- Wordings that look flexible but lack clarity at the claims stage
This is why working with a specialist engineering broker is essential. The goal is not simply to secure a cheaper premium, but to ensure the policy will respond as expected when it is needed most.
Why Now is the Right Time to Review Your PI Insurance
A softening PI market creates a window of opportunity. Firms that review their Professional Indemnity insurance early can often secure broader cover, improved terms, and more competitive pricing, before the market inevitably tightens again.
The key question for engineering firms is simple:
Does your current Professional Indemnity policy genuinely reflect the work you do today?
If your policy has not been reviewed recently or was arranged during tougher market conditions, now is an ideal time to reassess whether it still meets your needs.
Get in Touch
If you would like a specialist review of your Professional Indemnity insurance, working with a broker who understands engineering risk and has access to a multi-disciplinary insurer panel, now is the right time to have that conversation.
James Davies, Client Executive
01454 800 845
james.davies@ntegrity.co.uk
