Engineering Liability Insurance
Professional liability insurance for engineers is specifically designed to protect their unique set of risks.
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Insurance for engineers
Engineers have truly shaped the world we live in today. From designing bridges to microwaves and dating sites – plus a million other examples in between – we have the technical expertise of engineers to thank for many things we use daily.
As an engineer, you play a crucial role in ensuring the design and implementation of a project goes to plan – and your clients depend on your expertise. While you can do everything in your power to ensure a safe and successful outcome, there’s always a risk that an accident could happen beyond your control. That’s why it’s important to protect yourself, your clients, and your business with the right coverage.
Your business has unique risks – and that’s where we can help. At 2autoinsurance, we’ve helped more than 100,000 entrepreneurs protect their businesses with insurance policies designed to cover their specific needs. Below you’ll find helpful information to answer your top questions about engineer insurance.
What is engineers insurance?
Engineers insurance is a policy package specially designed to protect engineering professionals against specific risks associated with providing their services, including, errors and omissions, negligence and third-party-related accidents and injuries.
What does it cover?
Engineer Insurance describes several insurance policies that are combined to provide comprehensive coverage. Typically, an insurance program for professional engineers will include the following coverages:
- Professional Liability Insurance: Also known as Errors & Omissions Insurance (E&O), Professional Liability Insurance offers coverage for misconduct, negligence, or failure to deliver a service as advertised. If your client feels your professional advice or service didn’t have the expected results, they could sue. Within the engineering space, there are many scenarios where you’ll need professional liability. For example, an engineering error could mean that a computer program doesn’t work as advertised or suppose a new sunblock doesn’t provide adequate protection. Professional Liability Insurance could cover the legal fees and damages, including monetary judgments.
- Commercial General Liability Insurance (CGL): Commercial General Liability Insurance is a basic form of coverage that protects against day-to-day risks you may encounter while running your business, such as third-party bodily injury (e.g., slip-and-fall) or property damage. CGL generally covers medical fees and legal expenses, regardless of the lawsuit outcome.
- Cyber Liability Insurance: Cyber Insurance is essential for anyone who stores client information or confidential data. It could cover costs associated with cybercrime involving your technology systems and customer data, such as incident response and breach management fees.
You should also consider the following coverage based on your services:
- Equipment and Tools Insurance: This policy covers loss or damage to the equipment you use to complete your job – whether you own the equipment or it’s in your care. For example, if your toolset was stolen overnight from a job site, Equipment and Tools insurance coverage could cover the cost to replace the stolen tools.
- Pollution Liability Insurance: Pollution liability can be necessary for specific Engineers (i.e Chemical or Industrial). This insurance provides coverage for third-party bodily injury, property damage, and environmental damage due to both gradual and sudden pollution events that occur on a job site. This coverage could cover civil fines or penalties, assessments, emergency response costs, and clean-up costs.
Who needs it?
Any professional or business providing an engineering service should protect their business from common risks with an engineers liability insurance policy package.
We’ve insured more than 1,000 engineers. Some of our clients include:
- Mechanical Engineers
- Chemical Engineers
- Civil Engineers
- Electrical Engineers
- Management Engineers
- Geotechnical Engineers
How much does it cost?
Many factors go into the total cost of your engineers insurance policy. You can expect to spend approximately $500 annually on a Professional Liability Insurance policy with a limit of $250K.
To make sure you get the best price for your business, we’ve partnered with more than fifty insurance providers offering you a variety of options that will suit your business needs.
Here are some of the main factors we take into consideration:
- Number of Employees
- Project type
- Years of Experience
- Location
- Tools & Equipment Owned
- Annual and Projected Revenue
When you apply for a free quote, we’ll ask questions about your business that will help us to determine what coverage you should have.
Common claims scenarios
Problem: As a civil engineer, you approved cosmetic design changes to a small bridge, including additional material for the railings. During a heavy windstorm, some of the bridge’s railings become detached from the deck, causing the bridge to be unsafe to use.
Outcome: The municipality successfully sues you for professional negligence and the damaged bridge. Your Professional Liability Insurance coverage may cover the legal fees and the cost to fix the broken components of the bridge, totaling $200,000.
Problem: As a computer engineer, you’ve been working on building a new app for your clients’ food delivery service. When you were nearly at completion, you noticed an error, delaying the project several weeks beyond its well-published launch.
Outcome: Your client alleges that your failure to complete the project on time has cost them potential business revenue, including losing a contract from a large restaurant chain due to the delay. Your Errors and Omissions Insurance coverage could cover the legal fees, totaling $150,000.
Problem: As a chemical engineer, you help a small beauty store create a new anti-aging moisturizer for sensitive skin. Once it hit the shelves, many loyal shoppers purchased it. Unfortunately, several people have bad reactions to it, which inevitably created the need to recall the product.
Outcome: The beauty store owner sues you for your failure to produce a safe and effective anti-aging moisturizer. Your Professional Liability coverage could cover the legal fees, product expenses, and medical costs of customers, totaling $50,000.
Frequently asked questions
Will my insurance policy cover all phases of the engineering project?
Yes. While you (or one of your employees) are working on the project, you will be covered by your insurance policy. However, it is best to discuss with your broker the specific details of the different phases of your engineering project.
Does my policy cover engineers in training?
Yes. Engineers-in-training would also be covered under your policy. Please note, your policy limit typically applies to all employees under your policy rather than each individual employee. You can increase your limit, or ask employees to hold their own coverage.
Does Engineering Insurance cover all types of engineers?
Yes. Engineering Insurance combines several insurance policies to provide comprehensive coverage that’s right for your business. Our brokers will work with you to understand your unique risks. This will ensure you’re covered for what you need and you’re not paying for policies that don’t apply to your business.
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