Insurance For Engineering Firms

Insurance Policies to Consider For Engineering Firms

Why Do You Need Engineering Insurance?

Here are the main reasons insurance is crucial for engineering firms: 

Risky Work Environment

Although there are different types of engineers, such as civil, mechanical, and electrical, nearly all of them often deal with powerful equipment and heavy materials.

This implies that engineering workplaces are prone to various risks that are not found anywhere else. If you are heading an engineering firm, there is always a possibility of an accident happening. This may result in expensive liabilities. 

Involvement with High-Stakes Projects

Engineers need to gain and maintain the trust of their clients. This is important because engineers are often involved in high-stakes projects with a matching budget.

In case of mistakes, clients may file a lawsuit against your engineering firm, which can lead to a negative image. Without a reliable insurance policy, this may cost your firm considerable time and money. 

Closeness to Third-Party Individuals or Property

For some engineers, projects may be close to third-party individuals, such as the general public, clients, and suppliers. At times, projects may be close to third-party properties, too.

Engineering firms are required to ensure that the nearby individuals and third-party properties remain safe. If they are damaged by any of your employees, your company may face a lawsuit.

Insurance for Engineering Firms

Here are different insurance policies that are vital for your engineering firm:

Professional Liability Insurance

This insurance is required by engineers who are independent as well as engineers who work for a firm. It is also known as errors and omissions insurance. Professional liability insurance takes into account claims of:

• Negligence: If your firm is accused of negligence, such as inability to meet industry criteria, then it is at risk of a professional liability lawsuit.
• Missed deadlines: A missed deadline can have major negative consequences for a client. This can cause your client to sue your business.
• Undelivered services: If your business is unable to deliver a service, a client may file a lawsuit.
• Work mistakes and oversights: A client could lose money in case of an error made by your company. As a result, they may sue your business.

At times, even if you did not make a mistake, a client may file a lawsuit against your company if they believe you were at fault. Without sufficient coverage, you would have to bear the high defense costs yourself. 

General Liability Insurance

Engineers often work on projects in commercial areas. General liability insurance offers compensation in case of damage to a client’s property or bodily injury to a third party. Coverage typically includes: 

Third-Party Bodily Injury

In case a client sustains an injury by slipping or falling on your business premises, they may sue your business. General liability insurance can compensate for their medical bills, and the legal costs for defending your engineering firm. 

Third-Party Property Damage

If engineers in your firm are working at a client’s property, there is a risk of property damage. General liability insurance takes into account repair and replacement costs in case a client’s property is damaged. 

Reputational Harm

A third-party may file a lawsuit against your business for libel or slander. If this occurs, general liability insurance can compensate for the legal costs to defend your engineering firm.

Advertising Injury

Your firm may get sued for copyright infringement. For instance, if you use someone’s pictures in your advertisement without permission, the photographer may file a lawsuit against your business. 

Workers’ Compensation Insurance

Workers’ compensation insurance safeguards your employees and offers medical care, and disability, death and rehabilitation benefits for workers who sustain an injury or die on the job. This policy’s coverage includes:

Medical Expenses

Workers’ compensation insurance offers coverage for your employees’ medical bills due to injury or illness at work. This can pertain to prescriptions, required surgeries, and emergency room visits.

Missed Wages

Another important aspect of workers’ compensation insurance is that it can help replace a staff member’s lost income if they require time to recover from a work-related illness or injury.

Ongoing Care

At times, injuries sustained or illnesses contracted at work can be serious enough to need more than one kind of treatment. For instance, if your employee gets injured while handling powerful equipment, workers’ compensation insurance can compensate for ongoing care expenses such as physical therapy.

Funeral Costs

An employee may end up passing away due to a work-related accident. In such a scenario, worker’s compensation insurance can take into account the funeral costs as well as death benefits to the beneficiaries.

Illness

At times, conditions at work can make your employees vulnerable to allergens or harmful chemicals which cause illness. If an engineer falls sick to a work-related condition, workers’ compensation insurance can take care of the treatment and ongoing care expenses.

Repetitive Injury

Work-related injuries are not always sustained as a result of a single event. Repetitive injuries, like carpal tunnel syndrome, develop over months or years. This insurance policy can compensate for the required treatment and care costs.

Disability

An injury sustained at work may be serious enough to temporarily or permanently disable an employee. In this case, workers’ compensation insurance can cover the medical expenses and even replace a portion of the lost income.