Case Study Engineers

Professional Indemnity insurance is an important part of many professionals' business risk management.
We asked successful professionals in key sectors about their business, and where PI fits into the work they do.

Jon Oates, CEng MIStructE, owner of JJO Associates, consulting structural engineers

What does your business do?

My practice, JJO Associates, has extensive experience in most fields of structural engineering including commercial, industrial and domestic new build, refurbishment, structural appraisals, subsidence, foul and surface water drainage, highways and so on, and can offer clients a professional service at competitive fee levels. We carry out structural engineering work in Devon and the surrounding area including Exeter, Dorchester, Taunton, and Yeovil. We use traditional methods of design as well as state of the art design and detailing computer software.

What kind of risks do you have to think about in the day-to-day running of your business?

The top priority is to ensure the safety of operators on site and also the safety of the end user once the work is done. We have a code of practice for structural design that we work to and it forms the basis of any design and work that we do. Basically architects come up with the concept but it's down to us to make sure it stands up! Broadly speaking we have to safely transmit all loads to the foundations and that includes wind and snow loads.

When you first set up your business, did you see Professional Indemnity Insurance as an integral part of insurance set up costs or did you buy into it later?

I set up the business in 1988 and ensured that I had PI from day one in order to practice professionally. It’s not mandatory but I think that everyone in the industry should have it.

What are the key benefits of PI cover for engineers?

Peace of mind is the main thing and it also gives protection for clients who often ask if I have cover. You get the legal protection which is mainly for the benefit of clients as when it comes to structural errors the consequences can be disproportionate to the cause. For example, a small mistake within a design can cost a huge amount of money to put right. In addition, the level of PI is often based on the fee income and is therefore proportionate to the size of practice.

What aspects of your business or services you provide are most open to risk?

The structural design concept, correct assessment of loading and sound information on any associated ground conditions. The analytical process that we deploy has clearly got to be accurate. In our business, the risks of potential errors are often more about the financial cost to correct them than any threat to life and limb.

What are your customers' greatest concerns, and how does PI help protect your reputation?

They put their faith in you to have full competence to accomplish the job you're doing for them. They expect us to work efficiently, professionally and economically – they don't want any big surprises half way through the job! The service we provide has established our reputation – PI is a necessary insurance policy but not something that builds reputation on its own. We get most of our clients through word of mouth recommendations.

What's the most interesting case of a negligence claim or horror story you've heard of in your industry – whether founded or false?

The most spectacular horror stories are the ones that everyone hears about like the wobbling Millennium Bridge – a design fault that cost millions to fix. That's a great example of how the consequences of a structural error can be disproportionate to the cause. In domestic projects, it can be excessive deflection of beams that causes some of the biggest problems, or an incorrect dimension.