Insurance Requirements for Engineers

  • Compare Free Quotes

  • Buy Online, No Paperwork

  • Get Instant Coverage

As an engineer, are you officially required to get insurance? What about if you own an engineering company? What if you’re an engineering consultant? The short answer is yes. Irrespective of what kind of work you do as an engineer, whether you’re an independent contractor or part of a firm, insurance is necessary.

But the kind of insurance you get will depend on your specific requirements. Insurance protects you against costs related to legal claims and Court proceedings.

Any time there is a legal battle, even if you aren’t to blame, you’ll still have to pay a substantial amount of money out of your own pocket. Protect your interests as a professional with the right engineering insurance.

What are the Insurance Requirements for Engineers?

There are certain kinds of insurance coverages that you’re expected to have as an engineer. If you do to a lender for example, they are going to ask you for details on your insurance plans before they proceed any further. If you and your engineering business aren’t insured, you probably won’t get the loan.

Insurance is also crucial if you want to work with other engineering companies or businesses. If you’re an engineering consultant and you advice an engineering company, this also applies to you.

When you’re working with another professional or company, and you or they get sued, then you may not be covered under their insurance scheme. In this situation, you may get roped in to paying thousands of dollars in legal fees while the other party pays nothing as they are insured.

Protect Your Engineering Business today.

Keeping this in mind, there are two main kinds of insurance coverages you should always get as a professional engineer. These are:

1) Professional Liability Insurance

If you, or your employee, during or through work, brings damage to the client or a third party, then you can be sued. A professional liability insurance protects you in this situation by providing payment for the litigation process, as well as settlements and claims.

Even the best employees and professionals can make mistakes or be held back by factors outside their control. If bad weather causes delay at work, and you can’t finish your project in time, you may not be at fault but the client can still legally sue you. A professional liability insurance for engineers will protect you in this case.

2) General Liability Insurance

A professional liability insurance doesn’t include claims for damages from situations that fall outside the purview of your professional duty. But these are more likely to result in legal battles and settlement claims.

Say a third party trips and falls on a property you rented for your client’s project. In this situation, you could get sued by the third party. Similarly, if someone trips over a wire in your office and gets hurt, they can sue you as well. In this way, there are many scenarios outside work where physical injury and accidents can result in you getting sued.

A general liability insurance protects you if you get sued for being negligent, spreading slander, misrepresenting the client, and more. It can be extended to include all employees within the same scheme, if you own an engineering company. Everyone included in the insurance policy can benefit from a general liability insurance for engineers.

While these two are the most important insurance coverages you need as an engineer, there are two others that are just as important. They are:

3) Workers’ Compensation

If you own an engineering company or a small business, then you’ll need to invest in workers’ compensation insurance. In the United States, many states have made it compulsory under the law for employers to invest in workers’ compensation insurance.

This insurance protects your workers in case they suffer from any injury or accident as a result of work. A person who does repetitive work every day, like many engineers do, can over the long term suffer the consequences of that. Here, a workers’ compensation insurance will step in and provide them with financial help.

4) Business Owners Policy

If you own an engineering business, then a Business Owners Policy (BOP) can be necessary for you. This insurance policy brings together business insurance and property insurance under one umbrella. The main need to get this insurance arises if there are any natural disasters, fire, accidents or other unexpected scenario. Since your business and property are both insured, you can claim your compensation as getting back to business as soon as possible.

What Should Insurance for Engineers Include?

Engineers who aren’t insured don’t realize the risk yet. An insurance scheme is a preventative measure that protects your professional interests and expands doors to greater opportunities. If you want to acquire funds to expand your engineering business, you’ll need to first get insurance before a lender will help you, for example.

Engineers Insure provides insurance to engineers, engineering firms as well as independent engineering contractors. Get yourself insured today and obtain the peace of mind that a secure career can bring you.

Even if you get sued, you can find peace in the knowledge that your financial health and business interests will continue to remain sound irrespective of the outcome of the case.

Insurance is necessary for engineers, especially as the work they do often involves technical details where the smallest error can have expensive consequences. Get insured with Engineer Insure and protect your engineering business!