Insurance Coverage for Engineers
As an engineer, your services are significant in the lives of many people. Therefore the engineering activities that might include designing, operating machines, or constructing various structures can subject your profession to both seen and unforeseen risks. Hence, engineers employed by engineering firms, hence working as agents, don’t have to worry about business risks. On the other hand, if you are a sole service provider, protecting your engineering business with the right insurance should always be a priority. It takes consultation with the relevant knowledge on insurance to help you secure adequate coverage for your business. Working with one of our insurance agents is the best way to find the right coverage suited for your business.
Further, it is in your best interest that you understand the top causes of liability claims against engineers before professional liability lawsuits start hitting your business.
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Top causes for liability claims against engineers
- Avoidable errors: A simple miscalculation can lead to a mistake in the design of a structure. The more the miscalculations depending on the number of client projects you deal with, the higher your business’s risk of liability. Therefore engineer liability insurance is a crucial part of your engineering business if you want to secure your profession and business.
- Disregarding early warnings: In any business, not just the engineering business, a client who is ever complaining is a likely Plaintiff in a professional liability lawsuit against you. Some of the toxic signs you should pay attention to in a client include frequent frustrations in your work, constant questions, failing to understand basic contractual terms, etc. Such clients are likely to take offense to most of your choices, and the result might not be the best thing to ever happen in your engineering career.
- Involving many parties in your projects: It is often a good idea to have other parties on board when handling a big project. Working with experts like professional consultants before taking on a project might be a good fit when seeking to avoid liability claims thereon. However, if you don’t have a budget for such engagements, you might end up with substandard reviews that might misguide you hence liability claims in the long run. Building good relationships with other engineering firms and having them on board in such projects can be the best solution in the long term.
Reasons for acquiring engineering liability insurance
Every business has its challenges whose adverse effects can range from minor to major. As an engineer, your whole career is based on a reputation built from the excellent services you offer and the financial prowess you build over time. A negligence claim stemming from a past client’s services will injure your financial prowess and your business reputation. Therefore working with one of our independent agents will give you a chance to know your business risks and the types of insurance coverage available for you.
Types of engineering liability insurance and their coverage
- General liability insurance: In scenarios where a claim is made against your engineering business for bodily injuries or property damages arising from your business operations, the likelihood of being held liable is high. General liability insurance will cater for compensation and legal cost your business might incur.
- Professional liability insurance: As an engineer, among the services you are likely to offer include advice to clients, among other services, including overseeing the building of structures. If a client incurs losses due to your services, then your professional liability insurance, also known as errors and omissions insurance, will cover the requisite costs. You need to be aware that professional liability insurance is of different types:
- Design liability insurance: This is a professional liability insurance cover that guards against claims where the aggrieved party points towards your design as the sole cause of injuries sustained.
- Design professional liability insurance: When a client raises a claim that a design delivered by you is faulty, this type of coverage will guard you.
- Umbrella insurance: As much as general liability coverage is essential to your engineering business, umbrella insurance can help secure your business against other miscellaneous claims not covered in the general liability cover.
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Things not covered by general engineering liability insurance
The general engineering liability insurance you secure might cover most claims, but it won’t cover everything. For this reason, an independent insurance agent will often take you through the things covered under general liability insurance and subsequently advise on the role of additional coverage, as shown above. Here are some of the most common things not covered:
- Damage arising from an accident caused by an ariel device like an airplane
- Substandard services to a client
- Loss of machines and other work equipment
- Existing defects at the time of securing coverage
Advantages of engineering liability insurance
Legal costs for defending a negligence suit against you or your business can be hefty. With an insurance cover, you will not have to worry about attorney costs because it will settle costs. If a judgment is entered against you in a lawsuit, the funds needed in paying the Plaintiff will be duly settled by your coverage. Generally, engineering liability insurance gives you the peace of mind you require to build your business hence avoiding the constant worry of what is bound to happen if a negligence suit is instituted against you.
In business, time is of the essence, and every minute you spend handling claims can injure your business input. When a claim arises against your business, your insurer will take up the matter, including investigations, all required of you is cooperation.
Why you require the services of an independent insurance agent
Independent insurance agents work for you and not for the insurance company; hence they have your best interest at heart. Their work revolves around finding out more about various insurance companies, the moment you reach out to an independent insurance agent, immediately the process of sourcing the best cover suitable for your business and budget begins. Please speak to one of our independent insurance agents today and save yourself time and money to acquire the best coverage.