Insurance for Engineers

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.

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.

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.

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.