Professional liability insurance protects professionals like engineers, physicians, and accountants against negligence and other claims initiated by their clients. Professionals with expertise in specified areas need this kind of insurance, as general liability policies do not provide protection against claims that arise because of negligence, mistakes, misinterpretation, or any kind of malpractice.

Professional liability insurance works based on the kind of business, and its name also depends on that. For instance, engineering professional liability insurance is for engineers, and medical malpractice insurance is for medical professionals. Professional liability insurance is a special coverage not provided under endorsements of homeowners, in-home business policies, or any business owner policies.

Professional liability insurance policies are primarily claims-made, which means coverage is best for claims made and events that occur when the policy is active. You may also get occurrence policies, which means you will get coverage when any incident occurs while you had coverage, even if you allow your policy to expire and a client files a claim against you after its expiry. However, occurrence policies are very rare in such sectors.

In general, professional liability policies will cover the insured against any loss that arises from claims made during the policy period because of covered errors, negligent acts, or omissions in the conduct of the insured profession’s business during the policy period. Engineering companies and business owners usually work in close association with clients to design several kinds of projects. In some cases, such work can give rise to mistakes, and when it happens and causes a client to suffer a financial loss, they may sue your business. This is the reason professional liability insurance for engineers is important.

Professional liability insurance for engineering assists in protecting your business and design professionals from all kinds of lawsuits regarding professional services. You might also hear other names for this coverage, such as:

• Professional indemnity insurance
• Errors and omissions insurance
• E&O insurance

This kind of business insurance is vital to have. Even if you do not make any mistakes in your professional services, you could still get sued. Without coverage, you might be responsible for expensive claim costs.

Professional liability insurance for engineers can assist your business when:

• A building is built incorrectly because you had the wrong dimensions in the blueprint.
• The storage building of your client collapsed as a result of the design of your firm.
• Your engineer offers incorrect advice after not doing a complete inspection of the property before construction.

Conclusion

Professional liability insurance offers the required coverage to small businesses to protect them against all kinds of professional mistakes. It is an important coverage, as mistakes happen no matter how careful or experienced you are as a professional. As an engineer, you often offer clients advice and apply your expertise to projects. This forms a unique set of risks, as any acquired issues or misunderstandings between you and a client can result in a liability claim. This is where professional liability insurance for engineers could assist.