Texas engineers provide vital services that help maintain the state’s infrastructure, contribute to scientific innovation, and keep the state on the cutting edge of technology. Clients in many industries rely on your knowledge and expertise to make important decisions. This makes engineers important to the state’s economy, but also means that you face unique risks on the job.
Engineers in Texas may need to protect themselves against liability claims stemming from mistakes, negligence, and other types of professional misconduct. Professional Liability insurance is one way to do this.
Let’s take a closer look at Professional Liability insurance and other forms of coverage that engineers in Texas may need.
Professional Liability insurance for engineers
A Professional Liability insurance policy (also known as Errors and Omissions or E&O insurance) is an essential policy that protects you and your company in case of a lawsuit due to alleged professional wrongdoing.
What does Professional Liability insurance cover?
Professional Liability insurance provides coverage for a range of liability claims that engineers and other professional service providers may face on the job. These include:
- Missed deadlines
- Undelivered services
- Allegations of negligence
- Breaches of contract
Your Professional Liability policy will also cover you if a claim is without merit, which can be just as expensive as a valid claim to defend in court.
Why do Texas engineers need Professional Liability?
Engineers often use their professional knowledge and expertise to provide advice to clients. If your recommendations cause a client to suffer a financial loss, you might be found liable.
The resulting lawsuit could be expensive, particularly if it stretches on for months or years. Paying these costs from your own pocket can have a devastating effect on your business finances—and even your personal savings. This could lead to filing for bankruptcy, business closure, or other negative consequences.
In the case of baseless claims, Professional Liability can help you defend your professional reputation without damaging you financially.
Is Professional Liability insurance required in Texas?
Texas law does not require engineers or other businesses to have Professional Liability insurance. However, if you are a member of a professional association, they may require their members to have this form of coverage. They might also set minimum levels of coverage that you must maintain.
Even if it is not required, your clients may expect you to have a Professional Liability insurance policy. This helps lower their own insurance costs and liability, but also speaks to your reputation and skill as an engineer. A Professional Liability policy signals to clients that you value your professional reputation and are prepared to defend it, if necessary.
How much does Professional Liability insurance cost?
The cost of Professional Liability insurance varies. Insurers use many factors to calculate premiums (how much you pay for a policy), including:
- The industry or industries you work with
- Your business revenue
- The amount of coverage you need (or want)
- Your claims history
- The risk management procedures you’ve put in place
When applying for Professional Liability insurance, it’s important to be clear and honest about the work that you do. Not only will this affect the price, but it will help ensure that your policy provides appropriate coverage that includes all your business activities. For example, the work done by a civil engineer is different to that of a chemical engineer. Their policies will likely differ in price to reflect the unique risks that each face in the workplace.
Other types of insurance to consider
Professional Liability insurance is not the only coverage that Texas engineers frequently consider. You may also choose to protect your business with:
General Liability – Also referred to as Commercial General Liability (CGL) or “slip and fall coverage”, this insurance can protect your business against bodily injury or property damage lawsuits from outside parties.
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.
Where can Texas engineers find Professional Liability insurance?
There are dozens of insurance companies offering Professional Liability policies to Texas engineers. Compiling and comparing these can be time-consuming for busy business owners, particularly if you are looking for more than one type of policy.
This is where BizInsure can help. Our site lets you quickly and easily compare multiple insurance products from multiple insurers at the same time. You can then select the policies that fit your needs and buy online in minutes—no complicated paperwork required. We’ll even send you a proof of insurance instantly by email, so you can get back to work!