Achieving meaningful savings.
Achieving meaningful savings is not simply a matter of obtaining more quotes. It requires specialist analysis of the company’s operating structure, revenue composition, work locations, contractual obligations, limitations of liability and the precise scope of services performed.
Thrisk then presents that risk accurately to insurers so it can be properly classified and competitively priced.
Savings Opportunities
The four principal savings opportunities.
- 1
Workers’ compensation
- 2
Professional indemnity
- 3
Specialist equipment
- 4
Public liability
01 — Workers’ Compensation
Workers’ compensation.
NDT businesses are often classified under high-risk construction categories, with premium rates potentially approaching 6% of wages. However, where personnel predominantly work at client sites, classification may instead be determined by the principal activity undertaken at those sites. At an oil and gas facility, for example, the applicable rate may be closer to 1% — creating a potential premium reduction of approximately 80–85%.
02 — Professional Indemnity
Professional indemnity.
NDT companies commonly charge a day rate for personnel, meaning reported turnover includes both the underlying labour cost and the company’s effective fee or margin. If the insurer rates the entire turnover as professional fee income, the premium may be materially overstated.
Thrisk discloses the company’s complete turnover while providing insurers with a defensible calculation of the effective fee-income component on which the professional indemnity risk should properly be assessed.
03 — Specialist Equipment
Specialist equipment.
NDT businesses often hold valuable handheld, testing and other specialist equipment. Thrisk has access to specialist equipment insurers and experience placing technically complex assets, including underwater robotic equipment. Depending on the existing structure and claims history, savings of approximately 30–40% may be achievable.
04 — Public Liability
Public liability.
Public liability pricing can often be improved by clearly documenting the company’s exact scope of work, contractual protections and any limitations of liability. These risk controls are frequently not communicated adequately to insurers. Removing ambiguity enables underwriters to understand the true exposure and price the risk more accurately and competitively.
In-house Contract Review.
Thrisk also has an in-house Contract Review service — unlimited reviews at no cost. It’s all part of the annual service bundle.
That is Thrisk’s expertise.
Other savings may also be available, but these are generally the largest levers. For an NDT company, accepting conventional insurance pricing without specialist review can mean paying substantially more than the actual risk warrants.
The opportunity does not come from asking more insurers for quotes. It comes from knowing what to ask, how to calculate it and how to present the business accurately. That is Thrisk’s expertise.
How can we help?
Let's talk about your insurance.
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Frequently asked questions
Questions you may have.
Short answers for employers, operators, and project teams dealing with specialist insurance, WorkCover, contracts, and claims.
Why are NDT companies overcharged for insurance?
Conventional market classifications do not accurately reflect how NDT businesses operate. Insurers default to high-risk categories and rate whole turnover as fee income, so premiums are priced against a risk profile the business does not actually have.
How much can an NDT company save on workers’ compensation?
NDT businesses are often classified under high-risk construction categories with premium rates approaching 6% of wages. Where personnel predominantly work at client sites, classification may instead be determined by the principal activity undertaken at those sites — at an oil and gas facility, for example, the applicable rate may be closer to 1%, a potential premium reduction of approximately 80–85%.
How does day-rate billing affect professional indemnity premiums?
Day-rate turnover includes both the underlying labour cost and the company’s effective fee or margin. If the insurer rates the entire turnover as professional fee income, the premium may be materially overstated. Thrisk provides insurers with a defensible calculation of the effective fee-income component on which the risk should properly be assessed.
Can Thrisk insure specialist and underwater NDT equipment?
Yes. Thrisk has access to specialist equipment insurers and experience placing technically complex assets, including underwater robotic equipment. Depending on the existing structure and claims history, savings of approximately 30–40% may be achievable.
Is getting more quotes the way to reduce NDT insurance costs?
No. The opportunity does not come from asking more insurers for quotes. It comes from knowing what to ask, how to calculate it and how to present the business accurately.
Does Thrisk review contracts for NDT companies?
Yes. Thrisk has an in-house Contract Review service with unlimited reviews at no cost — it is all part of the annual service bundle.