As an experienced engineering manager with many projects under your belt, the idea of having your own practice is appealing. You’ve built your professional network and cultivated important client relationships, giving you a strong foundation for starting your own shop. You’ve planned for several operational needs:
- Office space
- Equipment and business tools
- Investment funding
You’ve even thought about the types of insurance you’d need to secure including general liability insurance for certain workplace incidents and property damage, and workers’ compensation coverage for workplace injuries. Have you considered protection for your engineering firm due to errors and omissions in your work product?
What Is Professional Liability Insurance?
Professional liability insurance, also known as Errors & Omissions insurance protects you and your company against claims due to negligence or mistakes that arise from your designs. As a licensed engineer, you understand the weight of signing and sealing plans to be used for construction. Despite a rigorous QA/QC approach, sometimes mistakes and oversights slip through. E&O insurance covers damages and losses, including legal costs and settlements.
Do I Really Need This Insurance?
One small mistake can lead to millions of dollars in damages which could kill your company as soon as it starts. Having a professional liability plan in place covers you and your business. You’ll find that many clients require consultants and contractors to carry this type of insurance before entering into a contract. Reach out to an insurer that specializes in E&O coverage to come up with a policy that is tailored to your operations.