TL;DR
As a structural engineer, you are the unseen architect of our safety. You calculate the forces, assess the materials, and design the frameworks that allow our buildings, bridges, and tunnels to stand strong against the tests of time and nature. Your profession demands precision, responsibility, and an exceptional eye for detail.
Key takeaways
- The percentage of time spent in an office versus on a live construction site.
- The maximum height they typically work at.
- The types of sites they visit (e.g., a standard commercial build vs. an offshore oil rig).
- The countries they travel to for work.
- Frequency: How often are you on site?
As a structural engineer, you are the unseen architect of our safety. You calculate the forces, assess the materials, and design the frameworks that allow our buildings, bridges, and tunnels to stand strong against the tests of time and nature. Your profession demands precision, responsibility, and an exceptional eye for detail.
But have you applied the same meticulous planning to your own financial foundations?
Just as a skyscraper needs a robust structure to protect its inhabitants, you and your family need a solid financial safety net to protect you from life's unexpected events. Life insurance, critical illness cover, and income protection are the essential components of this financial framework.
This guide is specifically designed for structural engineers in the UK. We'll explore the unique aspects of your profession that insurers consider, break down the types of cover available, and show you how to secure the right protection at an affordable price, ensuring your family's future is as secure as the structures you design.
Affordable cover for specialist engineering staff
A common misconception is that working in a specialist field like structural engineering automatically leads to sky-high insurance premiums. While your job can involve site visits, working at height, and significant travel, it doesn't mean affordable cover is out of reach. In fact, for most structural engineers, standard rates are often achievable.
The key is understanding how insurers view your specific duties and presenting your application in the clearest possible light. This is where specialist advice becomes invaluable.
Insurers assess risk on an individual basis. Two structural engineers could receive very different quotes based on:
- The percentage of time spent in an office versus on a live construction site.
- The maximum height they typically work at.
- The types of sites they visit (e.g., a standard commercial build vs. an offshore oil rig).
- The countries they travel to for work.
Navigating this complex landscape alone can be daunting. A specialist broker, like WeCovr, understands the nuances of the insurance market. We know which insurers are more favourable to professions like yours and can help you frame your application to secure the most competitive terms, ensuring you don't pay more than you need to.
Why Do Structural Engineers Need Specialised Insurance Advice?
Your role is far from a standard 9-to-5 desk job. Insurers need to understand the specific risks associated with your day-to-day activities to offer you the right cover. Here are the key areas they focus on.
Site Visits and Working at Height
This is often the primary concern for underwriters. While much of your work may be computer-based design and analysis, site inspections are a critical part of the job. Insurers will want to know:
- Frequency: How often are you on site?
- Environment: Are these standard UK construction sites, industrial plants, or more hazardous locations?
- Height: Do you work at height? If so, what is the maximum height, and what safety equipment is used?
For most engineers whose work at height is infrequent and below a certain threshold (e.g., 10-15 metres), many insurers will offer standard terms. However, if your role involves regularly inspecting tall buildings, bridges, or masts, your application will require more careful consideration. Full disclosure is vital to ensure your policy is valid when you need it most.
Travel and International Work
Does your work take you beyond the UK? Insurers will ask about the countries you visit, the duration of your trips, and the nature of your work there.
- Low-Risk Destinations: Travel to Western Europe, North America, or Australia for meetings or site visits is rarely a cause for concern.
- High-Risk Destinations: Working in regions with political instability, poor safety records, or limited medical facilities can impact your application. Insurers may apply a premium loading or, in extreme cases, an exclusion for death or illness occurring in that country.
The Pressure of Responsibility
The weight of responsibility on a structural engineer is immense. You are legally and professionally accountable for the safety and integrity of your designs. This high-stakes environment can contribute to significant stress and mental health challenges.
According to the Health and Safety Executive (HSE), stress, depression, or anxiety accounted for a staggering number of lost working days in the UK in 2022/23.
- Income Protection becomes critical in this context. If you were signed off work for several months due to burnout or anxiety, this cover would provide a replacement income to cover your bills.
- Critical Illness Cover can also be relevant, as some policies now include benefits for severe mental health conditions.
The Rise of Self-Employment and Directorships
Many experienced structural engineers choose to set up their own consultancy or work as a freelancer. This move offers greater freedom and earning potential, but it also removes the safety net of an employer's benefits package.
If you are self-employed or a company director, you are solely responsible for your financial security. There is no sick pay, no death-in-service benefit, and no company pension unless you arrange it yourself. This makes personal and business protection not just a good idea, but an absolute necessity.
Core Protection Products for Structural Engineers
Understanding the main types of insurance is the first step to building your financial defences. Each product serves a different purpose, and they often work best in combination.
Life Insurance
Life insurance pays out a tax-free lump sum if you die during the policy term. Its primary purpose is to provide for your dependents and clear any outstanding debts, ensuring your family isn't left in financial difficulty at the worst possible time.
| Type of Life Insurance | How it Works | Best For |
|---|---|---|
| Level Term Assurance | The payout amount remains the same throughout the policy term. | Covering an interest-only mortgage or providing a lump sum for family living costs. |
| Decreasing Term Assurance | The payout amount reduces over time, usually in line with a repayment mortgage. | Covering a repayment mortgage. This is typically the most affordable option. |
| Whole of Life | The policy is guaranteed to pay out whenever you die, as long as you keep up with premiums. | Covering a future Inheritance Tax bill or leaving a guaranteed legacy. |
Example: Mark is a 40-year-old structural engineer with a wife and two young children. They have a £350,000 repayment mortgage. He takes out a decreasing term policy to cover the mortgage and a separate level term policy for £250,000 to provide his family with a lump sum to live on if he were to pass away. (illustrative estimate)
For those concerned about Inheritance Tax (IHT), a Gift Inter Vivos policy can be a smart solution. If you gift a significant asset (like a share in your business or a property) and die within seven years, the gift may be subject to IHT. This type of life insurance policy is designed to pay out a sum to cover that potential tax bill, protecting the value of the gift for your beneficiaries.
Critical Illness Cover (CIC)
This cover pays out a tax-free lump sum if you are diagnosed with one of a specific list of serious medical conditions. It's designed to protect you from the financial impact of life-altering illness. The 'big three' conditions covered by most policies are cancer, heart attack, and stroke, which account for the majority of claims.
Recent statistics from the Association of British Insurers (ABI) show that insurers paid out over £1.27 billion in critical illness claims in a single year, with an average payout of over £66,000.
This money can be used for anything you need, such as:
- Clearing your mortgage or other debts.
- Replacing lost income while you are unable to work.
- Paying for private medical treatment or specialist therapies.
- Making adaptations to your home.
- Allowing your partner to take time off work to care for you.
Crucially for a specialist professional, the definitions of illnesses matter. A policy that pays out on 'total permanent disability' based on your inability to do your own specific job as a structural engineer is far more valuable than one that only pays if you can't do any job.
Income Protection (IP)
Often considered the foundation of any financial protection plan, Income Protection is designed to replace a portion of your monthly income if you're unable to work due to any illness or injury.
Unlike Critical Illness Cover, which pays a one-off lump sum for a specific condition, Income Protection provides a regular, tax-free monthly benefit that can continue until you recover, or until your chosen retirement age.
Key features to understand:
- The 'Own Occupation' Definition: This is the gold standard of cover, especially for specialists. It means the policy will pay out if you are unable to perform the material and substantial duties of your specific job as a structural engineer. Avoid policies with lesser definitions like 'suited occupation' or 'any occupation'.
- Deferment Period: This is the waiting period from when you stop working until the policy starts paying out. It can range from 1 day to 12 months. A longer deferment period means a lower premium. Self-employed engineers often choose a period of 3-6 months to align with their business's cash reserves.
- Benefit Amount: You can typically cover up to 60-70% of your gross monthly income. This is designed to be enough to cover your essential outgoings without disincentivising a return to work.
Personal Sick Pay is a type of short-term income protection, with deferment periods as short as one day and benefit periods limited to 1, 2 or 5 years. It's a popular choice for tradespeople and contractors who have no employer sick pay to fall back on, but can also be a good fit for freelance engineers on short-term contracts.
Family Income Benefit (FIB)
This is a variation of life insurance. Instead of paying a single lump sum on death, it pays out a regular, tax-free monthly or annual income to your family for the remainder of the policy term.
Example: Sarah, a 35-year-old engineer, has a policy designed to run until her youngest child turns 21. If she were to die when her child is 10, the policy would pay a set income to her family every year for the next 11 years.
This can be easier for a family to manage than a large lump sum and is an excellent way to budget for ongoing costs like school fees, household bills, and childcare.
How Insurers Assess Applications from Structural Engineers
The underwriting process is where the insurer evaluates your individual risk. Being prepared for their questions is key to a smooth process and a fair outcome.
The Golden Rule: Full and Honest Disclosure
It is absolutely essential that you answer every question on the application form truthfully and completely. Failing to disclose something, like regular work at height, could lead your insurer to void the policy and refuse to pay a claim. The consequences for your family could be devastating. A specialist broker can guide you on what information is relevant and how to present it accurately.
Key Questions for a Structural Engineer
You can expect to be asked for more detail about your work than someone in a purely office-based role. Be ready to provide information on:
- Work Split: What percentage of your time is spent on-site versus in an office or working from home?
- Site Activities: What do you do on-site? Is it purely observational, or does it involve physical work?
- Working at Height:
- Do you work above a certain height (e.g., 10 metres)?
- What is the maximum height you have worked at in the last 12 months?
- How frequently do you work at height?
- Is it on open scaffolding, gantries, or via a cherry picker?
- Hazardous Environments: Do you work in any unusual or hazardous locations, such as confined spaces, mines, tunnels under construction, or offshore installations?
- International Travel: Provide a list of countries visited for work in the past year, the duration of the trips, and the nature of the work.
Potential Underwriting Outcomes
Based on your answers, your application (including your health and lifestyle information) will result in one of several outcomes:
| Outcome | Description | Example Scenario |
|---|---|---|
| Standard Terms | Your application is accepted at the quoted price with no changes. The ideal outcome. | A structural engineer who spends 80% of their time in the office and occasionally visits standard building sites, not working above 10 metres. |
| Premium Loading | Your premium is increased by a set percentage (e.g., +50%) to reflect a higher perceived risk. | An engineer who regularly works at heights of up to 30 metres on bridge inspections. |
| Exclusion | The insurer offers cover but excludes claims arising from a specific activity. | A policy that covers death from any cause except while working on an offshore oil rig. |
| Postponement | The insurer delays making a decision, often for a set period (e.g., 6 months), to wait for more information or for a situation to stabilise. | An engineer who is about to embark on a 3-month work project in a politically unstable country. |
| Decline | In very rare cases of extreme risk, the insurer may be unable to offer cover at all. | This is highly unlikely for a structural engineer unless combined with severe health issues or extreme hazardous activities. |
This is why working with a broker is so important. If one insurer applies a heavy loading, we at WeCovr know which alternative insurer might view your activities more favourably and potentially offer you standard terms.
Special Considerations for Business Owners and Company Directors
For structural engineers running their own limited company, a suite of business protection products exists to protect the company itself, as well as you and your fellow directors. These are often highly tax-efficient.
Key Person Insurance
Who is the most important person in your engineering consultancy? It's likely you, or a senior technical director. If that 'key person' were to die or become seriously ill, how would the business cope?
Key Person Insurance is taken out and paid for by the business. The policy pays a lump sum to the business (not the individual's family) to cover the financial fallout, such as:
- Lost profits and revenue during the disruption.
- The cost of recruiting and training a replacement.
- Reassuring lenders and suppliers that the business can continue.
- Repaying business loans.
Relevant Life Cover
This is a highly tax-efficient alternative to a personal life insurance policy for company directors and employees. It works like a 'death-in-service' benefit for small businesses.
- The company pays the premiums, which are typically an allowable business expense.
- The benefit is paid out tax-free to the director's family via a trust.
- It doesn't count towards the individual's lifetime pension allowance.
For a higher-rate taxpayer, this can result in savings of up to 49% compared to a personal policy paid from post-tax income.
Executive Income Protection
This works just like a personal income protection policy but is paid for by your limited company. Again, the premiums are usually a deductible business expense, making it a tax-efficient way to secure your income. The benefit is paid to the company, which then pays it to you as salary, subject to normal PAYE deductions. This protects both you and the business if you're unable to work long-term.
Shareholder or Partnership Protection
If you co-own your business with other directors, what would happen if one of you died? The deceased's shares would pass to their estate. Would you want their spouse, who may have no engineering experience, to become your new business partner? Would they want to be?
Shareholder Protection provides a solution. It's a combination of life/critical illness policies and a legal agreement. If a shareholder dies, the policy pays out a lump sum to the surviving shareholders, giving them the funds to buy the deceased's shares from their estate at a pre-agreed price. This ensures a smooth transition, allowing the business to continue under the control of the remaining owners.
Health & Wellness: Proactive Steps for a Long and Healthy Career
While insurance provides a financial safety net, the best strategy is always to proactively manage your health and well-being. A healthier lifestyle not only improves your quality of life but can also lead to lower insurance premiums.
Managing Physical Risks
- On-Site Safety: Always adhere to Health and Safety Executive (HSE) guidelines. Proper use of Personal Protective Equipment (PPE) is non-negotiable.
- Office Ergonomics: Long hours at a CAD station can lead to repetitive strain injury (RSI), back pain, and eye strain. Ensure your workstation is set up correctly, take regular breaks, and stretch.
Nurturing Mental Wellbeing
The high-pressure nature of your work makes mental health a priority.
- Acknowledge Stress: Recognise the signs of burnout – exhaustion, cynicism, and reduced professional efficacy.
- Set Boundaries: Maintain a healthy work-life balance. It's crucial for long-term sustainability in a demanding career.
- Seek Support: Don't hesitate to talk to colleagues, your GP, or use resources provided by professional bodies like the Institution of Structural Engineers (IStructE), which offers a benevolent fund and support services.
The Pillars of Health: Diet, Sleep, and Exercise
The basics are often the most effective. A balanced diet, consistent sleep of 7-9 hours per night, and regular physical activity are proven to reduce the risk of many conditions covered by critical illness policies, such as heart disease and type 2 diabetes.
At WeCovr, we believe in empowering our clients to live healthier lives. That’s why, in addition to finding you the best insurance protection, we also provide our customers with complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. It's a small way we can support you in building a healthier future, which goes hand-in-hand with securing your financial future.
Finding the Best Cover: Why Use a Specialist Broker?
You could approach an insurer directly, but you would only get one price and one set of underwriting criteria. Using an independent, specialist broker like WeCovr gives you a significant advantage.
- Whole-of-Market Access: We compare quotes and policies from all the major UK insurers, not just a select few. We know which providers have more experience with and favourable terms for engineers.
- Expert Application Support: We help you complete the application forms correctly. We know the questions insurers will ask and can help you provide the detailed information they need about your work upfront, avoiding delays and ensuring a fair assessment.
- Navigating Complex Cases: If your work involves more unusual risks (e.g., extensive international travel to hazardous zones) or if you have a pre-existing medical condition, our expertise is invaluable. We can negotiate with underwriters on your behalf to find the best possible terms.
- Saving You Time and Money: We do the legwork for you, saving you hours of research and phone calls. Our knowledge frequently results in securing better cover at a more competitive price than you could find on your own.
Your expertise is in designing resilient structures. Ours is in designing resilient financial plans. Let us help you build a protection portfolio that's as strong and reliable as the projects you work on.
Will my life insurance premiums be higher because I'm a structural engineer?
I'm self-employed. Is Income Protection more important than Critical Illness Cover?
What happens if I don't tell my insurer I work at height?
Do I need to tell my insurer if my job role changes, e.g. I start working offshore?
Can I get cover if I have a pre-existing medical condition?
Sources
- Office for National Statistics (ONS): Mortality, earnings, and household statistics.
- Financial Conduct Authority (FCA): Insurance and consumer protection guidance.
- Association of British Insurers (ABI): Life insurance and protection market publications.
- HMRC: Tax treatment guidance for relevant protection and benefits products.
