Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Commercial Property Insurance will provide coverage for your properties in case damage renders them impossible to rent or lease.
Cyber Liability Insurance protects you from the theft of sensitive data. If you suffer a data breach or software attack, Cyber Liability Insurance will cover the costs of notifying and restoring affected customers, recovering data and repairing security systems.
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused sobody financial loss. PLI covers your legal defense costs, damages and settlements.
Umbrella Policy adds an extra layer of protection to professionals if a serious event or cumulative claims exhaust your current polcy limits. It also covers you for events that would otherwise be excluded from your other policies.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Why does an Engineer need insurance?
Professional Liability insurance is all about protecting the engineer's professional services risk. Many scenarios exist where engineers are in need of insurance like claims of poor project management, inadequate design or specification, incorrect certification and these can pose great financial risk when their client files a lawsuit. Insurance is the safety net to make sure you financially survive a lawsuit, win or lose.
What are risks Engineers face?
Engineers deal with higher-stake risks than most other businesses because their work can affect the safety of their clients and the people around them. A common source of lawsuits against engineers is miscommunication. When clients expect one thing and engineers expect another, the stage for a claim is set. Engineers are liable for contracted work done. They are legally responsible for mistakes and oversights that can occur.
How much does Engineer insurance cost?
For starters, General Liability is often required when renting an office space. It costs around $400-$500 annually. To protect your professional service, Professional Liability (Errors & Omissions) insurance is needed, which can start as low as $1,000/year. Depending on the nature of your services the cost can climb above $10K annually. When you drive a car for business purposes, Commercial Auto insurance is recommended with a cost varying depending on vehicle and coverage requests.
How can I reduce my risks as an Engineer?
Following industry best pracitces and staying up to date with the profession's newest ways to work is a good start. Implementing clear contracts and setting customer expectations also helps. After that, a comprehensive insurance program can keep you in business when the rainy days come.