The Importance of Insurance Coverage for Engineers

Insurance
Insurance
Jul 28, 2017 · 2 min read

Engineers are trusted with various critical roles in different sectors from construction to telecommunications. As with a majority of other professionals, engineers carry some liabilities as they go about their duties and this is why insurance coverage is so essential. The level of risk that an engineer comes with depends on the type of work. Most of the tasks that engineering professionals are responsible for involve public safety. Whether intended or not, an engineer may handle a project that poses some danger to the public, and in such instances, they have to protect themselves when problems arise.

Coverage Types

One kind of policy that an engineering company can get is public liability insurance. This coverage applies in cases where engineers are held liable for the injury of a third party or property damage. For instance, if an engineer designs a structure poorly then it collapses and results in personal injury, the victim may sue the company that did the work. Such a lawsuit falls under the umbrella of public liability insurance. Engineers can also get professional indemnity policies, which apply when damages occur due to the expert advice given by an engineer. Other products are available for engineers but picking the right one may not always be straightforward so the expertise of an insurance broker may come in handy.

Why get Insurance

A lot of situations can lead to an engineer being sued by a client. Faulty designs are some of the complaints that engineers may get from customers. A single miscalculation when constructing a product can result in severe consequences. For instance, an engineer who models a vehicle with defective parts that cause accidents can be sued.

Poor project management can leave an engineer in a murky legal battle with a client. The engineer may not necessarily be at fault. Maybe a subcontractor misled the engineer, or unexpected delays interrupted a project. A customer can sue if it’s thought there was wrongdoing.

Engineers who work as consultants can also find themselves dealing with legal troubles. A client who got information or advice from an engineer and used it to make decisions that resulted in damages has a right to legal action. Say, a structural engineer consults on a construction project that ends up incurring financial losses due to the information that was given may have to pay compensation.

Many more examples apply when evaluating the necessity of insurance for engineers. The monetary penalties in these cases can leave a company bleeding financially hence the need to get the right coverage.

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