/ BLOG

Do You Have Engineer Professional Liability Insurance? Here Is Why You Should

Jun 20, 2019 · 5 minutes to read

Why Do Engineers Need Professional Liability Insurance?

There is hardly a more versatile profession than an engineer. Not only there are many engineering specialties (we counted 17!), but many specialties have further subdivisions. For example, a Civil engineering branch includes specialties such as structural and geotechnical engineering; computer engineering includes hardware and software engineering specialties, and so on. As an engineer, you might be involved in everything from designing and building the product to testing, maintenance, and production.

As an engineer, you may be responsible for a product that can cause thousands of dollars in damages and can impact hundreds of lives if it failed or was designed improperly.

It’s easy to see how an architect or an engineer that works on public construction projects such as office buildings, bridges, or other structures hold many lives in their hands. Just imagine a building or a bridge collapsing due to faulty design. Hundreds of thousands of property damage is a virtual guarantee, and that’s if no one was injured or worse.

Of course, these are extreme examples. A mistake an engineer makes can cause thousands of dollars in damages even on the smaller scale projects. Even if you are not involved in major construction and design projects of, say bridges, you are still at risk of something going wrong.

So what happens if something does go wrong? That’s when the blame game begins. In our notoriously litigious society, a lawsuit is often the next step. As an engineer responsible for designing, developing, or maintaining the product, you will likely be a primary defendant or a co-defendant on such a lawsuit.

A Professional Liability insurance policy for engineers (also called Errors & Omissions insurance) protects your business and your personal assets from the financial consequences of a lawsuit brought against you. In basic terms, the policy covers your legal costs such as attorney fees, forensic accounting, etc. as well as any awards, judgments or settlements against you.

Why you should get Engineer Professional Liability insurance?

As the name of the articles suggests, this is the main topic of our discussion today. Most insurance agents that you will talk to, will advise you to purchase a Professional Liability policy. But do you really need it? The short answer is … most likely. Whether you are a small, one-person engineering consulting shop or a big business with many staff members, you likely do not have thousands, or even hundreds of thousands of dollars earmarked for covering a lawsuit.

Below are the three biggest reasons to purchase engineer E&O insurance:

1. Lawsuit Defense

One of the biggest reasons to purchase the policy is to protect yourself from the often-astronomical costs of defending your case in the court of law. It doesn’t matter how good you are in what you do; mistakes are a part of human nature. Many of these mistakes can be caught in time or mitigated to avoid a legal battle. But all it takes is that one error that slipped through the cracks for everything to come crashing down on you. As we mentioned before an Errors and Omissions policy will help offset these costs. Another significant benefit of such a policy is that it will help to defend a nuisance lawsuit as well. Even if the wrongdoing is only perceived and you cannot be faulted for the situation that occurred, it still costs money to investigate and defend your case. This is again, where Professional Liability insurance comes in. The insurance carrier will still pay your attorney fees, the cost of the investigator, costs to file motions with the court, and many other expenses that are typical when you are fighting your case.

2. Contract Requirement

The last but not least reason to purchase this policy has to do with helping you win more contracts instead of protecting you from a financial loss. All business owners want to protect their investment. When your client enters into a contract with you, they put their trust in your company that the product or service they are paying for will be completed correctly and at no loss to them. As we all know, unfortunately, it doesn’t always happen that despite everyone’s best intentions. Professional Liability is not only a way for you to protect your business assets from being liquidated to pay for a lawsuit, but also a way for your client to protect their investment. Without such insurance in place even if sued, you simply might not have the funds to compensate them for damages you caused. If you have an engineer’s Professional Liability policy, they know that they will get reimbursed for any damages. It simply gives your client a piece of mind. Professional Liability insurance as a contract requirement is becoming a widespread practice, and not having it will often preclude you from winning the bigger and better contracts. Not only that but having such policy will position you as a serious company with high standards and will help you stand out amongst the rest.

Conclusion

As a business owner, it is imperative to develop sound strategies to protect what you worked so hard to build. An engineer Professional Liability policy that addresses your unique business needs is one of the strategies to safeguard your business reputation as well as its’ assets.

Of course there are ways to minimize the chance of a lawsuit. A robust risk management plan will help set forth standardized procedures to streamline your operations, ensure quality control, and document steps to be taken to mitigate any errors. An effective risk management strategy helps foster clear communication with your clients and reduce the risk of any misunderstandings.

An example of a risk management strategy is formalizing a contract where you specify the scope of work, how any change to such scope will be handled etc. Your insurance carrier’s loss control representative should be able to help!

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Easy to navigate what you need. Always notify ahead of renewal!
Andrew is an asset to your company!
Liability Insurance is not enough for a smallbusiness. BizInsure also has Professional Liability Insurance to protect my business and team from unintended missteps. Thank you for making the process easy.
I renewed my policies , including a few updates, through the on-line portal. It was quick, easy and completed in a few moments. I will not have to revisit thias until 12 months from now. I printed out my documents and have no questions pertaining to my renewal. It was seamless. Thank you Biz Insure
Fast, Simple, convenient
This company is very efficient, easy to manuever their online renewal, I love it and would recommend to anyone.
Awesome service!
Very easy to work with, cost effective, prompt renewal and easy to get certificates of insurance instantly. I use them exclusively for my professional and general liability insurance needs as a consultant. They simply make my insurance be easy!
VERY PROFESSIONAL STAFF. CALLS ARE RETURNED PROMPTLY!!
Huge thank you to Andrea, she was patient, kind, & caring! Got my quote fast & at best price!
Excellent and Easy service - Thank you.
Amy was a delight to work with she help me with finding he right policy for my business I can't thank her enough for her help
I purchased liability insurance for my home care agency, Unlimited Gentle Care, and the process was seamless and straightforward, ensuring that every aspect of our liability was covered. This company also offers a great value for the extensive coverage my company receives
BizInsure was an easy way to purchase insurance for my business.Kaleb especially was a great help.Thanks,Rich Valentini
awsom service, perfect price and great policy
I have purchased General Liability Insurance for the past 4 years at BizInsure for my wedding videography small business. In these 4 years, it has always been a smooth process.There must've been some sort of technical issue (potentially due to my change in address), so my policy didn't auto-renew. I called Bizinsure and talked to Paulina, who was beyond helpful. She was very polite and explained things very well. One small detail that I can appreciate is that she often said my name, which shows that their customer service is intentional about personalized communication.In just a few minutes, we updated my account + renewed my insurance for a 5th year. I highly recommend Bizinsure!
great customer services.
This company allowed us an amazing experience, including very efficient, detail-oriented, and patient guidance from their commercial sales agent, Jenifer. I highly recommend this service for anyone in need of a business insurance policy.
Jennifer was very helpful and great to work with.
Very professional, fast and reliable. I appreciate their knowledge and experience. They have made this journey easier for me.
Very easy to renew! Thank you
super quick and easy process!
I am very satisfied with Bizinsure. No regrets
Very professional, easy, and thorough application process.
BizInsure is efficient and price friendly. I definitely reccommend them to anyone. Thank you.
Great process and very efficient.
Friendly and very fast service!
Jennifer Whiscombe, is an amazing agent. She was very knowledgeable, thorough and friendly. I highly recommend.
They make it very easy to buy insurance and renew.
As a business owner I love not wasting time. Thank you so much for giving me more time
Very straight forward, the cost of coverage amount made sense, simplicity was appreciated.
Always easy. Thank you.
A Company that is easy to deal with and that I have used for several years. I appreciate the continued support.
Very easy and affordable!
js_loader
Google Rating
4.7
Based on 299 reviews
×
js_loader