Does a Project Manager's On-Site Time Affect Both Professional Indemnity and Public Liability?

A construction project manager’s on-site time drives both professional indemnity and public liability exposure at once. That combination is exactly why some insurers are reluctant to quote a heavily on-site role at all. It isn’t just a question of pricing it higher.

Does on-site time increase professional indemnity exposure as well as public liability?

Yes. More site time generally means more judgement calls made in person, inspections, sign-offs, progress assessments made on the spot rather than reviewed later from a desk. If one of those calls turns out to be negligent, that’s a professional indemnity matter. The same site time drives public liability exposure directly too, through physical presence. The two rise together rather than trading off against each other.

Why would an insurer be reluctant to cover a heavily on-site project manager?

Because carrying high exposure under both covers at once is a different risk profile to a predominantly desk-based advisory role. Some insurers comfortable with office-based professional services pull back once the on-site proportion gets high enough. They treat the role as closer to a contracting risk than a professional services one. That’s an appetite question, entirely separate from how the cover ends up priced.

Does this mean it’s harder to get cover for a hands-on project manager?

Often, yes. A role involving a lot of direct site work, running inspections, signing off completed work, coordinating trades in person, narrows the field of insurers willing to quote at all. Specialist market access matters more here than for a purely advisory role. Not every insurer that writes professional services cover wants this particular combination of exposures.

What should be worked out before arranging cover?

The real split between site and office time and what kind of work happens in each setting. This isn’t a detail worth estimating loosely. It determines the premium on offer. It also determines which insurers are willing to look at the risk in the first place. A role undersold as purely advisory, when it genuinely involves heavy site attendance, can end up placed with the wrong insurer entirely.

What shapes the premium once the right insurer is found?

How much of the role is site attendance versus office-based advice, the value and complexity of the projects managed and how much contract administration sits alongside it, signing off variations and payment certificates rather than just advising on them.

Key Takeaways

The information in this article is general in nature and does not constitute legal, financial or insurance advice. Please speak with a qualified adviser about your specific circumstances.