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Site User
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jfitzgerald@wtf.ie
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23/01/2013 17:23:06
RE: PI Insurance for non-chartered engineer
Why don't you remain an employee as long as you can till your up and running as a sole trader for starters. Then move onto a Ltd company when you have enough of your own clients. You will get most of your work from doing good work and getting referrals. I run my own company as well as being an employee. It's a question of life balance. My PI was circa €700 per year but I'm chartered. I'm guessing yours will be £1,200 depending on the amount of design you do and what level of cover you go for. £500K cover should be loads for starting off. I know loads of Engineers that operate with no cover and transfer the design risk onto the client. Not sure many clients will go for this though. Best of luck, go for it.
John Fitzgerald BEng(Hons) CEng MIEI FConsEI
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Member (MIStructE)
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Jason Burstow
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25/01/2013 09:51:57
RE: PI Insurance for non-chartered engineer
Hi John
Thanks for that. I am also a Chartered Structural Engineer and I am in the process of making enquiries for PII. Like you say I have had estimates of £1,200 for £500k cover. However, the policy excess is £5,000 which seems high. This is for structural design for mainly domestic alterations, survey reports, preparing schedule of works, possibly some contract administration, dealing with party wall etc... I was hoping for a policy excess of no more than £500. Do you have any insurance brokers that I could contact as I may have to consider reducing the level of service until I am up and running..
Cheers
Jason
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Site User
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jfitzgerald@wtf.ie
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25/01/2013 12:15:39
RE: PI Insurance for non-chartered engineer
Hi Jason,
That Excess is way to high for the type of work you will be doing, I think mine is €500.
I'm responding from the ROI so you might be better talking to the local brokers. Just google them and shop around, most of them have the same form you fill in and send off.
Sorry I could not be of more help.
John.
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Member (MIStructE)
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Christopher Somerville
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05/02/2013 00:15:00
RE: PI Insurance for non-chartered engineer
Jason,
I only just seen your post so I'm not sure if this is still relevant
Having obtained my Chartership last year I recently setup my own company, I found obtaining PI cover an interesting experience!
After approaching about a dozen insurance companies and brokers; only about 5 would actually quote me and the variance in their quotes was crazy £650-£3000 for 500K cover.
In the end I contacted a friend, who had set up his own consultancy a couple of years ago, he recommended John Heath Insurance Brokers LLP. They were very informative on the phone and there website has a very useful online quotation system, I was quoted £770ish for 500K with £500 excess!
I actually took out my policy with them today, and spent an extra £50 for £1m cover with the same £500 excess! Which should cover me for some time … I hope
Also if you cash flow is tight you can pay in 10 monthly instalments.
Hope it helps and all the best
Chris
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Member (MIStructE)
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Jason Burstow
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22/02/2013 09:21:53
RE: PI Insurance for non-chartered engineer
Hi Christopher,
Thanks for that - I shall definetely bear them in mind when it comes to renewal next year.
One other question - I am looking to work with builders for simple alterations to domestic and small commercial properties. Do you find it best to have the builder as your client or the owner of the building. Personally I would prefer to have the building owner as my client. However, I can see that there are pros and cons for having either.
Regards,
Jason
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Member (MIStructE)
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Christopher Somerville
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22/02/2013 10:13:21
RE: PI Insurance for non-chartered engineer
I don't think there is definitive answer to this, and you will have to make the judgement on a project by project basis. I do a lot small works myself and once you start to develop relationships with your builders and architect it will become easier to make that judgement.
My preference is to be appointed directly by the main client, as it keeps lines of communication and responsibility clear also you usually get paid quicker.
However some builders and architects offer a 'complete' building regs service, so they want to appoint you directly, and there are also occasions when the client just doesn’t want the hassle of appointing another professional.
Either way it is vital that you have a good relationship with whoever appoints you, if it is someone you have not worked with before and you’re not sure about them, you may want to request payment up front, or prior to issuing your calculations.
Me personally unless I know someone really well or it is a large project, I note in my T&C that calculations will be issued upon receipt of payment, however I will provide any pertinent design information, for tendering purposes etc. This way I give myself some security, that if I am having difficulty being paid I still have some leverage.
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Member (MIStructE)
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TTT
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13/01/2010 00:00:00
RE: PI Insurance for non-chartered engineer
Hi Simon C, so hows your own consultancy goes? Is '1 man band' limited to things like loft converstion, kitchen extention...etc? Hope everything goes well with you...
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Guest
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Mr Daniel Brown
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15/01/2010 00:00:00
RE: PI Insurance for non-chartered engineer
I fit the bill as a one-man-band and have been self-employed since the 70's. I have never had a PAYE job and I do specialise in loft-conversions, through-lounges and simple stuff. I love it. Everything I do is checked by the building control officer who, I might add, has been the major shaper of my expertise. To get work, I simply placed an ad in the local paper. Free papers were the best. More expensive than yellow pages but I got loads of work. In one street in Kingston, I drew six loft-conversions that I obtained by word of mouth and I always get work, even in the deepest recessions - 1989! I wouldn't want the responsibility of paying wages, offices, etc. but I have to admit, now I am getting older, I wish I had expanded just a bit (a partner would have been good)
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Member (MIStructE)
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TTT
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15/01/2010 00:00:00
RE: PI Insurance for non-chartered engineer
so tempted to give it a try...
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Guest
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Mr Daniel Brown
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15/01/2010 00:00:00
RE: PI Insurance for non-chartered engineer
Do not give up your job.
Find a paper that is free or every body reads (Surrey Comet). If there are other people offering the services: Building Plans and Calculations, then that is a good sign - there's work. Put in the ad and wait for the phone call. If you know your stuff and can communicate it back to the clients (that can be very hard) you are on your way. Eventually, you will be snowed under. Learn to say no and look out for the psychic leeches. They keep you on the phone all day and pay you nothing.
You will probably have to do everything - drawing, building reg's, supervising the builder (not advised - do a good drawing and let them get on with it) even Planning Applications. You will never be bored.
Then give up your job.
Oh! and keep the wife; better than an answer-phone.
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