Project-specific PI cover — when a single engagement needs its own policy

Most UK professional firms hold annual practice-wide PI. But specific high-value projects sometimes require additional cover beyond the practice's standard limit. This page maps when project-specific PI makes sense, how it's structured, and how it interacts with the practice policy.

When project-specific PI applies

1. Project value exceeds practice PI limit. A large construction project, major transaction advisory, or complex litigation may warrant single-project cover above the practice limit.
2. Joint venture or consortium. Multiple professional firms working together on a single project may pool their PI arrangement or arrange bespoke project cover.
3. Client contract requires higher limit than practice holds. One-off client demanding specific cover level for that engagement.
4. Higher-risk activity in one project. Where a specific project involves higher-risk work than the practice's standard book.
5. Cross-border or international project. Where territorial coverage differs from practice-standard.

How project-specific PI is structured

1. Standalone project policy covering that specific engagement, in addition to practice PI.
2. Excess-layer project cover sitting on top of the practice policy for the specific project.
3. Joint-venture PI arrangement where multiple firms are named insureds for the specific project.
4. Named-project endorsement to the practice policy with specific higher limits and cover.
5. Bespoke wholesale placement for complex or difficult-risk projects.

Typical scenarios

1. Construction professional services on a £500m project. Practice PI at £5m; project may require £25m+. Project-specific cover bridges the gap.
2. Corporate finance advisory on a £200m deal. Practice PI at £10m; deal warrants £50m+.
3. Major public-sector engagement. Public sector procurement often requires £25m-£50m specifically for the engagement.
4. Joint-venture on a mega-project. Consortium arrangement with pooled project PI.
5. Higher-risk-building work under BSA 2022 where the specific project's tail exposure warrants project-specific cover.

Cost and structure

1. Project-specific cover priced against the specific engagement value, complexity and tail risk.
2. Premium is typically a small percentage of the underlying project fees.
3. Layered project cover often cheaper per unit than standalone.
4. Duration: from project inception through completion plus a defined tail.
5. Some structures include reinstatement provisions per project phase.

Interaction with practice PI

1. Practice PI typically responds first for practice-wide activity.
2. Project-specific cover responds to the specific project's exposure.
3. Excess project cover sits above practice PI limit for the specific project.
4. Cross-claim scenarios may involve both policies.
5. Aggregation across practice PI and project PI needs specific wording review.

When project-specific PI doesn't make sense

1. Standard practice PI limit is genuinely adequate for all engagement types.
2. Project value or exposure is within the practice's existing capacity.
3. Client contract requirement can be met by practice policy with endorsement.
4. Cost of project-specific cover exceeds the incremental protection benefit.
5. Structural restatement of the practice policy is a cleaner solution.

Frequently asked

Related reading

• PI excess layer programmes
• PI cover limit adequacy check
• PI insurance when using subcontractors
• Engineers annual PI renewal