We’ve already covered this topic somewhat in our Insurance For Engineers page, but we’d like to elaborate a bit further. Engineers of all types (structural, mechanical, civil, environmental, etc) all carry a risk of potentially being sued by a client should said client claim that the work performed by the engineer was incorrect or not as agreed upon. Regardless of how low risk an engineer may feel that the services that they provide are, the reality is that any engineer can be sued at any time, even if they didn’t actually make a mistake. So what types of scenarios can lead to an engineer being sued by a client? Making, or simply being accused of making any of the following could potentially lead to a lawsuit with a client:
- Designs or plans that contain mistakes or errors: For example, a mechanical engineer that is accused of designing a faulty product that then leads to consumer injury and/or product recall, an electrical engineer that is accused of designing a faulty electrical system that then results in a building to burn down, or a structural engineer that is accused of making a mistake in the design of the structural integrity of a building that then collapses.
- Giving incorrect advice or bad information: For example, a civil engineer who while consulting with their client makes a recommendation that turns out to be incorrect and results in a financial loss for the client, or a structural engineer who inspects a building for a general contractor or construction manager and the recommendations/advice given turns out to be incorrect and results in damage to the building.
There are countless other examples that can be given for all types of engineers and engineering services, but you probably get the idea. Carrying errors and omissions or professional liability insurance is not just important for engineers, it’s crucial in today’s litigious society. Not only can a policy cover the costs of paying out a claim if you are sued and one is awarded, but just as importantly the policy can pay for defense costs (attorney and other legal fees) even if there is no actual claim awarded. For more information regarding errors and omissions and professional liability insurance for engineers of all types, please visit our Insurance For Engineers page or Contact Us for a no obligation consultation or quote.
