California’s talented engineers are vital to the state’s growth and innovation. You work across multiple industries, providing important services and contributing expert knowledge that helps move the state forward. While this is an essential part of what you do, it also creates unique workplace risks that could open you up to liability claims and lawsuits.
Engineers in California often seek out Professional Liability insurance to help shield them against these risks.
Professional Liability insurance for engineers
Also known as Errors and Omissions (E&O) insurance, this type of policy protects your business against claims of negligence, misrepresentations, or mistakes. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.
What does Professional Liability insurance cover?
Professional Liability insurance provides coverage for a number of liability claims that California engineers may face on the job. These range from mistakes, errors and omissions in your work to more serious accusations, including:
- Missed deadlines
- Undelivered services
- Breach of contract
Why do California engineers need Professional Liability?
Engineers engage in several workplace activities that may make Professional Liability insurance necessary. Clients often rely on your knowledge and expertise to make important decisions. A mistake in your work, no matter how small, could impact the decision-making process and lead to financial losses for the client. If you are found liable, the resulting lawsuit could be financially devastating for you and your business.
Along with providing important recommendations, some engineers may represent a client’s interests on their behalf. This can also open you up to liability claims if the client alleges you acted negligently or otherwise breached your business contract.
Is Professional Liability required in California?
Engineers in California are not required by law to have Professional Liability insurance. However, some professional associations do require their members to maintain minimum levels of coverage to work in the field. The association’s website will have full details on any insurance requirements it enforces.
Additionally, your clients may require that you have Professional Liability insurance to work with them. They will typically include this condition in the business contract that you both sign.
Even if a policy is not a requirement to work on a project, clients might still expect you to have one. A policy can communicate professionalism to clients, that you value your skill and reputation and are prepared to defend them, if necessary. Clients might be more willing to work with an engineer who already has Professional Liability coverage in place.
How much does Professional Liability insurance cost?
The amount you pay for Professional Liability insurance (referred to as premiums) depends on the work you do and other factors that make you and your engineering business unique. These factors commonly include things such as:
- Your industry (or industries you work within)
- How much revenue your business makes
- The amount of coverage you need (or want)
- Your claims history
- Your risk management procedures
It’s important to be clear and truthful about your work activities when you apply for Professional Liability insurance. The answers you provide will help calculate your premiums, but it also helps the insurer find the most appropriate policy to fit your business needs. For example, a policy that covers a civil engineer may not be the best fit for an electrical engineer.
Other types of insurance to consider
Your engineering business might need other forms of coverage beyond Professional Liability insurance. California engineers also commonly consider:
- 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.
- Business Owner’s Policy (BOP) – This is a convenient package of insurance that protects your business against the common risks it faces every day. The BOP product includes various coverages that may suit the unique requirements of your small business. Insurance included in a BOP can vary but usually they include protection for typical small business risks such as property damage, business interruption and liability.
Where can California engineers find Professional Liability insurance?
Finding and comparing Professional Liability insurance quotes can take a lot of time. That’s why BizInsure has simplified the process of buying business insurance, so California engineers can instead focus on growing their business.
We’ve removed the complicated paperwork that usually comes with buying insurance. Now you can quickly receive quotes for multiple products from multiple insurers—at the same time. Click to buy online and receive your policy documentation instantly. All this can be done in a matter of minutes, so you can get back to work!
Visit our website to learn more about Professional Liability insurance for engineers and start getting quotes from top-tier insurers today.