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The following article was published in our article directory on May 2, 2010.
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What an Engineer's Professional Liability Insurance Covers

Article Category: Legal

Author Name: Robert McDonough

While some engineers do not believe that insuring themselves from possible claims against their work is necessary, a lot of others think that the minimal sum that they pay every year for an engineer's professional liability insurance is well worth it. There are a lot of things that can go wrong with engineering projects, regardless of whether or not you are careful with what you are doing. Having a professional insurance policy can help you cover not only the cost of defending your work and your firm or yourself, but it also helps cover any possible costs you may need to face when you are indeed found to be at fault. Having such an insurance coverage for yourself or your firm does not in any way say that you are not competent in your field. It only says that you are careful enough to cover all bases when it comes to unavoidable circumstances that may occur with any projects that you work on.

What does an engineer's professional liability insurance policy cover? When you obtain an insurance policy such as this, you are basically trying to cover yourself from problems that may arise with the projects you and your team take on. This kind of a policy is called an E&O Insurance or errors and omissions insurance and this will help cover you from the monetary headaches you might expose yourself to should a client sue you for negligence and for not doing your professional duties as well as you are expected to. This kind of an insurance policy also helps to keep you from losing money should you be found guilty and need to pay for the damages that your client claims you should pay for.

An engineer's professional liability insurance also helps keep your business afloat despite these problems since you won't have to pay for any of these damages and litigation costs, your insurance policy covers this for you. The cost for defending your firm's name or your name is shouldered by your policy and this means that you won't have to dole out a single dollar when it comes to these things. This is one of the reasons why engineering firms big or small and individual contractors try to secure an engineer's professional liability insurance, to protect themselves from the possible costs that these claims can bring them.

Some contractors that hire an engineering firm or an independent engineer to work on a project that they have require that this firm or independent engineer that they hire have an engineer's professional liability insurance policy to show them. This does not mean that this contractor does not trust the engineering firm's abilities or that they fear the engineer will make a mistake. These contractors are merely making sure that these firms or engineers can cover any possible damages that may result from inadvertent errors or unforeseen circumstances. These contractors also try to encourage the engineers and firms they work with to keep up with their policy payments for years to come to help them avoid shouldering any possible claims that may emerge a few years down the line.

Keywords: architects liability insurance, engineers liability insurance, civil engineers liability insurance, geotechnical engineers liability insurance, soils engineers liability insurance, structural engineers liability insurance

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