When you're an independent engineer or run a firm, you face risks. You could be responsible if someone is injured physically or monetarily as a result of your work. That's why you need business insurance. Without insurance, you could be paying out of pocket for any liability claims against your work. Here are some specific reasons why engineers need business insurance and what types you should consider.
Reasons to Get Business Liability Insurance
Having liability insurance is a good idea for your engineering business. Here are a few reasons why.
Insurance Covers You For Physical Injuries
Insurance will cover you if anyone is injured due to your actions or your lack of action.
Insurance Covers You For Delays
Your insurance will cover the losses of another party due to delays even if those delays are beyond your control.
Insurance Covers You For Design Flaws
Even a small flaw can cost a client time and money. Plus, someone may suffer an injury based on your design.
Insurance Covers Your Business's Assets and Equipment
You should also have insurance to cover your business and equipment in case of damage or theft.
Types of Insurance Engineers Should Consider
Engineers can benefit from most types of regular insurance as well as design-related insurance. Many insurance types also cover legal costs and awards. Here are a few types of insurance you should consider as an engineer.
General Liability Insurance
This insurance covers you and your employees if someone claims you damaged equipment or caused an injury.
Various types of design-related insurance are available. You can get coverage for delays and losses during the design phase or for liability caused by flaws and negligence.
Errors and Omission Insurance
Errors and omission insurance is also known as professional liability insurance. It covers you for claims related to your expertise. For example, you would be covered if you gave faulty advice or left out an important fact.
Workers' Compensation Insurance
If you employ anyone to work for you, then you must have workers' compensation insurance. This insurance covers your employees if they are injured in the course of doing their job.
Engineers are at special liability risk because they design products and structures used by other people. You could face a claim against you or your business even if you didn't do anything wrong. Insurance guards you against financial losses due to those claims. If you are an engineer, you must speak to an insurance agent who knows the risks of being an engineer. You may be able to purchase certain insurance on a per-project basis. Talk to an agent as soon as possible to see what your options are.