OFTEC Insurance & Risk Guide for Oil Heating Engineers
OFTEC-registered engineers work with some of the most hazardous heating systems in the domestic and commercial market. Oil tanks, pressure systems, burners, flues and commissioning all carry significant risk — meaning correct insurance is essential.
This OFTEC Insurance & Risk Guide, created by SRS Insurance, explains:
- The major risks OFTEC installers face
- The essential insurance protections
- Typical scenarios that lead to claims
- The exclusions that can leave engineers uninsured
- How to protect your business from costly incidents
This guide is not compliance or audit advice.
It is insurance and risk guidance for OFTEC-registered engineers.
Key Risks for OFTEC Heating Engineers
OFTEC engineers work on high-risk systems involving combustible fuels, pressure vessels and heating equipment.
1. Oil Leaks & Environmental Damage
One of the most serious liabilities in the heating industry.
Caused by:
- Damaged tanks
- Incorrect fittings
- Poor siting
- Split hoses
- Faulty filter housing
- Underground oil line leaks
Oil pollution claims can exceed £50,000–£250,000+, especially where soil remediation is required.
2. Fire & Explosion Risk
Oil appliances carry:
- Combustion risks
- Burner ignition failure
- Flue/ventilation faults
- Fuel vapour hazards
Property fires from oil boilers regularly exceed £100,000+.
3. Faulty Installation or Commissioning
Incorrect commissioning includes:
- Wrong combustion settings
- Poor draught readings
- Incorrect nozzle selection
- Pump pressure issues
- Incomplete safety checks
Faulty commissioning often leads to:
- CO production
- Fire
- System breakdown
- Costly damage claims
4. Oil Tank & Fuel Line Installation Risks
Tanks present major exposure:
- Pollution
- Fire
- Structural damage
- Escape of fuel
- Environmental contamination
Insurance must match these risks.
5. Hot Works & Fire Damage
OFTEC engineers often carry out hot works such as:
- Brazing
- Soldering
- Cutting copper
Fire damage from hot works is a top claim type.
6. Water Damage From Heating Systems
Results from:
- Faulty joints
- Incorrect pipework
- Leaks during install
- Faulty valves
- Poor pressurisation
Water damage claims are extremely common.
Essential Insurance Covers for OFTEC Engineers
1. Public Liability Insurance (PL)
Covers injury or property damage caused during oil heating work.
PL for OFTEC engineers should include:
- Oil tank installation
- Fuel line installation
- Burner & boiler work
- Hot works
- Water damage
- Environmental clean-up liability (recommended)
- Flue & ventilation work
Recommended limits:
- Domestic: £2m–£5m
- Commercial/industrial: £5m–£10m
2. Professional Indemnity Insurance (PI)
Important for engineers involved in:
- Heating system design/specification
- Oil tank siting advice
- Flue/ventilation guidance
- Risk assessments
- Commissioning
- Safety inspection reports
PI protects against:
- Incorrect advice
- Commissioning errors
- Design faults
- Documentation mistakes
Suggested limits: £250k – £1m
3. Employers’ Liability Insurance (EL)
Legal requirement if employing:
- Engineers
- Apprentices
- Labour-only subcontractors
- Trainees
Legal minimum: £10m
4. Tools & Equipment Insurance
OFTEC engineers frequently carry:
- Combustion analysers
- Oil testing equipment
- Leak detection tools
- Expensive hand tools
- Power tools
All high-risk for theft — especially from vehicles.
5. Contract Works Insurance
Useful for:
- Oil heating installations
- Tank replacements
- System upgrades
- Commercial plant rooms
Protects materials, installations and work in progress.
Common Insurance Mistakes OFTEC Engineers Should Avoid
No pollution/contamination cover
This is a major exposure in oil heating.
Many policies exclude it entirely.
No hot works protection
If your insurer excludes heat use, soldering or brazing — you’re not protected.
No cover for oil tank installation
Generic tradesman policies often exclude fuel-related work.
Assuming PL is enough
Commissioning, design and specification create PI exposure.
Not checking trade descriptions
Your policy must list:
- Oil heating installation
- Tank installation
- Commissioning
- Burner servicing
- Fuel line installation
Insufficient PL limits
Schools, farms and commercial sites often require £5m–£10m PL as standard.
‘Property worked upon’ exclusions
This exclusion can void claims involving:
- Boilers
- Tanks
- Fuel lines
- Pipework
- Flues
OFTEC engineers should avoid this exclusion.
Typical Claims Faced by OFTEC Engineers
Oil Leak Into Soil (£75,000–£200,000+)
Failed tank connection causes contamination requiring excavation and remediation.
Boiler Fire (£60,000–£150,000+)
Faulty burner causes ignition inside property.
Water Damage (£10,000–£40,000)
Incorrect joint leads to flooding after installation.
Hot Works Fire (£20,000–£80,000)
Soldering ignites insulation or nearby materials.
Faulty Commissioning (£15,000–£50,000)
Incorrect combustion setup causes breakdown or property damage.
Theft of Tools (£2,000–£10,000+)
Van break-in causes loss of essential equipment.
Recommended Insurance Checklist for OFTEC Installers
OFTEC contractors should consider ensuring their insurance includes:
- Oil heating installation
- Oil tank installation
- Fuel line installation
- Commissioning & system testing
- Hot works cover
- Environmental damage & pollution liability
- Professional indemnity (for design/specification/commissioning)
- Water damage
- Property worked upon
- Tools & equipment
- Employers’ Liability (if applicable)
- PL £2m–£10m
This is insurance guidance, not compliance advice.
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