Insurance For Engineers
Macario Insurance Group has extensive experience with assisting engineers in obtaining the right business insurance coverage for their specific needs. We specialize in professional liability, errors and omissions (E&O) and professional indemnity along with all other types of business insurance such as general liability, workers compensation and commercial auto insurance for all types of engineers. We have specialized programs for structural, mechanical, civil and environmental engineers, and are able to provide coverage for all types of engineers such as:
✔ Civil Engineers
✔ Electrical Engineers
✔ Environmental Engineers
✔ Industrial Engineers
✔ HVAC Engineers
✔ Transportation Engineers
✔ Process Engineers
✔ Forensic Engineers
✔ Nuclear Engineers
✔ Illumination Engineers
We currently offer insurance for engineers in Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Utah, Virginia and Washington.
What Types of Insurance Do Engineers Need?
The main type of coverage that engineers should carry is errors and omissions (E&O), which is also know as professional liability and less commonly professional indemnity. Errors and omissions and professional liability are meant to protect an engineer when a customer/client holds them responsible for a service that they provided which did not have the expected or promised results, so this is typically the primary type of policy that most engineers carry, or should carry. Next on the list is general liability, which is often carried by engineers in order to satisfy contractual requirements with a client or landlord. For larger engineering businesses and firms with employees and business vehicles, workers comp and commercial auto may also be needed. Commercial umbrella insurance / excess liability coverage may also be required by client contract, but is more often limited to larger engineering firms or an engineer taking on a high value project. Business property insurance may be needed in order to cover any property, equipment or buildings that are owned by the business. Cyber liability insurance can be useful for engineers that store or deal with sensitive client information, in the event that the information is compromised due to a an incident such as a data breach. For those engineers that have an exposure to claims that may arise due to pollution or other environmental incidents, environmental pollution liability may also be needed.
Why Do Engineers Need Errors and Omissions (Professional Liability)?
Engineering is a complex business, and mistakes can happen. Whether you are a civil engineer, structural engineer or a mechanical engineer, getting sued for an error or mistake can be a terrible thought, as even the best engineers aren’t immune to lawsuits. Just by being accused of making a mistake, whether you actually did or not, can result in a lawsuit. Lawyer fees and other related costs involved in defending yourself or your business against a lawsuit can potentially be enough to put anyone out of business, which is where errors and omissions insurance comes in. Not only can errors and omissions insurance provide coverage in the event that you are sued and a claim is awarded, but can also help to cover the costs of defending yourself or your business even when no claim is actually awarded. Carrying errors and omissions insurance may also help an engineer with obtaining larger projects, as many companies are now requiring that the engineers that they hire carry an errors and omissions insurance policy.
Why Do Engineers Need General Liability Insurance?
General liability insurance typically picks up where errors and omissions (professional liability) policies leave off, as errors and omissions insurance policies in most cases do not offer coverage for claims related to accidental property damage or bodily injury to a third party such as a client or their place of business. While many engineers do not have much of a physical risk exposure as they may only work in an office and rarely visit with clients, there is still often a need for engineers to carry a general liability policy. The two most common reasons that engineers carry general liability insurance are to either meet the contractual requirements of a client, or to satisfy landlord lease requirements if they are renting their office space. However there are some engineers that often work on site at clients’ locations, and therefore may have more of risk exposure to claims arising from physical damage or property damage than an engineer who’s work is limited to an office. These engineers would benefit from carrying general liability insurance in order to fill the coverage gap that is created by the exclusions in their E&O policy. Carrying general liability insurance in addition to errors and omissions insurance can also make an engineer or engineering firm look more attractive to prospective clients and potentially help to obtain more contracts. General liability should never be confused with errors and omissions (E&O) or professional liability, as they are completely different coverages as outlined above. Additionally, most types of engineers must carry or purchase errors and omissions insurance in order to qualify for general liability insurance with many insurance carriers, so purchasing general liability coverage without errors and omissions coverage can often prove difficult. For those engineers that are not interested in carrying errors and omissions insurance (this is not advisable) but need general liability insurance in order to satisfy landlord requirements, a premises liability insurance policy may be the best option.