Insurance for Engineers
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Professional Liability Insurance (aka E&O insurance) for Engineers
Also known as Errors and Omissions insurance (E&O), Professional Liability insurance is designed to protect engineers in the event of causing a professional mistake which results in causing injury to someone or damage to their property.
If you were to have a lawsuit filed against you or your business, Professional Liability insurance is there to provide financial protection even if you have done nothing wrong. Depending on your level of coverage, Engineers Professional Liability insurance can cover your legal expenses when defending your claim.
It may also pay for losses of income while you spend time on your defence and can pay settlements which may also be awarded to the claimant.
A&E insurance policy provides the following standard coverages:
- Architects and Engineers Professional Liability
- Architects, Engineers and Contractors Pollution Liability
- Technology Based Services
- Technology Products
- Computer Network Security and Privacy Liability
- Multimedia and Advertising
In addition to standard coverages, engineers often need the following coverage features:
- Technology risk coverage for:
- electronic transfer of data
- copyright infringement
- web-hosting functions
- privacy liability
- ADA/FHA/OSHA regulatory actions reimbursement extension
- Defendants’ reimbursement extension
- Disciplinary proceedings reimbursement extension
- Reputation management reimbursement extension
- Broad definition of insured – includes insured’s participation in joint ventures
- Automatic 60-day coverage for acquired entities
- Blanket waiver of subrogation provision for clients of the insured as required by contract
- Punitive damages extension – where insurable by law
- Mediation deductible credit
Did you Know?
Some of your clients may require that you and your subcontractors carry professional liability insurance.
Engineer liability insurance covers a broad range for professions
Civil Engineer inclusive of Traffic/Transportation/Hydrology
Electrical Engineering inclusive of Lighting/Illumination/ Telecom/Communications
Forensic Engineer inclusive of Expert Witness Services
Mechanical Engineering inclusive of Plumbing design
Why do engineers need it?
The profession of an engineer is held in high regard, you’re an expert when it comes to bridging the gap between technology, science and society. You create change with your designs and implementations, something which your clients entrust will you deliver without fail. But with innovative projects comes a level of risk, as new processes are tested for the first time, there is always the possibility for something to go wrong.
When mistakes happen, they can have a devastating impact on your finances and your reputation. Professional Liability insurance is there to provide protection from the risks you face as an engineering professional.
Insurance for Engineers FAQs
How much does engineer insurance cost?
The cost of engineer insurance can vary greatly from one engineer or engineering firm to another. Insurers use many factors to determine policy premiums, so even engineers working in the same area are likely to pay different amounts for their Professional Liability and other business insurances.
Some of the factors used to calculate engineer insurance premiums include:
- Your business’ geographic location
- How long you have been in business
- The business’ revenue
- Your claims history
- The risk management procedures in place
- The amount of coverage you need
Comparing quotes for engineer insurance can give you a better idea of what a policy that fits your business’ needs will cost.
What types of insurance do engineering firms and companies need?
Engineering firms may need different types of insurance to adequately cover the risks they face as a business. These may include:
Professional Liability – Otherwise known as E&O insurance, this protects your business against claims of negligence, misrepresentation or mistake, as well as document or paperwork errors.
Due to the nature of their work, engineers often buy Professional Liability insurance to help protect them against claims of mistake, omission, breach of contract, and other liability claims.
General Liability – This policy can protect you against any claim by an outside party regarding injury or damage to their property. In these instances, your policy will cover your legal expenses as well as your cost to replace or remedy the situation up to the limits of liability.
Engineers often seek General Liability insurance if they frequently work on-site and/or meet with clients in their offices or another third-party location.
Business Owner’s Policy (BOP) – This is a combination of policies, combining covers such as General Liability insurance and business personal property coverage, to help protect small businesses from costly interruptions to service.
Workers’ Compensation – This protects you against medical expenses and lawsuits that can arise from employee workplace injuries and illnesses. It could also pay lost wages as a result of the work injuries that an employee sustains.
Every state (except Texas) requires you to have Workers’ Compensation insurance if you have employees. Some states may require engineers working as sole proprietors to also have a policy.
BizInsure makes it easy to quote and compare multiple types of insurance from multiple insurers at the same time, so engineers can create an insurance package that fits their individual needs.
Why do engineers need a comprehensive insurance policy?
A comprehensive Professional Liability insurance policy can help protect engineers against common liability claims they may face on the job. These include claims regarding:
- Errors and mistakes
- Omissions in your work
- Professional negligence
- Undelivered services
- Missed deadlines
- Breaches of contract
Without this insurance coverage, you could be responsible for costly legal expenses that could potentially destroy your business finances (and personal savings, as well). Professional Liability insurance for engineers can cover these costs, including settlements and judgements, so that you don’t have to.
Is engineer insurance required by law?
Engineers are legally required to have certain types of insurance in some states.
Professional Liability insurance is legally required for some types of engineers in certain states. You may need to purchase a policy to become licensed. Additionally, professional associations may set minimum coverage requirements for their members.
Workers’ Compensation insurance may also be required by law for some engineers. States may require engineers working as sole proprietors to have their own policy, as well as engineering firms that employee a staff.