Even the best laid plans can go awry. As an engineer, your job is multifaceted and can involve many different types of jobs. There are engineers who build skyscrapers and museums. There are engineers who design machinery and develop new mechanical innovations. There are engineers responsible for city layouts and overseeing public events. Using technology and science, engineers help solve society’s conundrums and work to make life easier, but mitigating the diverse range of risks can be tough. All engineers need insurance, but how do find a comprehensive program designed to meet your specific needs?
Engineering is a multifaceted field that is responsible for innovations in science, aerospace and our daily lives.
While all businesses have unique risks, the engineering field is a bit more complicated. Even within the profession, there are many different types of engineers who work on a vast number of projects.
If you manage an engineering operation, you need a comprehensive insurance policy that can mitigate your specific risks whether you’re assisting with a music festival or heading up a downtown revitalization. You can be held responsible for a number of issues that arise with an engineering project, but your insurance must also handle standard business risks.
It is important to work with an agent who can help evaluate the risks you face in your specific line of work and identify the types of coverage you need whether you and your crew are doing design and build projects, contracting to defense firms or working in the digital industry.
As an engineer, your professional liability risks are significant. It only takes a small mistake or error in judgment to throw off an entire project. A safety concern could be introduced by a change of building plans, or a delay by mismanagement and employee turnover.
"Errors and omissions insurance," or E & O, protects you against legal claims in a wide range of scenarios. For example:
A lawsuit is very expensive and can cause severe financial challenges for your business without the right protection. Engineer professional liability insurance covers your legal defense fees. If the court rules in the client’s favor, your insurance can also help to pay the settlement or judgment amount.
Remember, if you work in the design phase of engineering, there are design professional liability insurance policies developed specifically for your field. Be sure to work with an experienced insurance agent who will ask you the right questions and match you with the appropriate policy recommendations.
You should also be aware of what your coverage limits are and how they work in specific situations. For example, if the settlement amount is $2 million but you only have $1 million of liability insurance, you’re responsible for the remaining $1 million. Some client contracts will specify a desired amount of insurance. You may also want to consider business umbrella insurance for additional liability protection.
From engineer professional liability insurance, to property and equipment coverage, to workers' compensation and design insurance protection, you have some insurance requirements as an engineer depending on the size of your firm and your projects. You may need help evaluating what coverage works best for your needs and risks. Financial advisers, legal professionals and insurance agents can help you understand what coverage you need and what risks you face in your line of work.
Researching the right insurance company to work with might take a little time, but comparing quotes for coverage is well worth your effort. Once you understand what coverage you need, matching up with the right agent and the right policy will be easy.