Your clients rely on your designing, planning, and building expertise.
And it's because of that expertise that architects, land surveyors, and engineers can be sued for fraud and negligence in performing their duties.
Because we live in a an increasingly litigious world, creative lawyers with unscrupulous clients may trump up a charge to take advantage of the fact that the architect or engineer has insurance. In fact, in recent years, tens of millions have been awarded to the damaged parties from liability suits against some of the larger architecture and engineering firms.
As an architect or engineer, what would happen if you were hit with a liability suit for more than your current insurance covered?
- Architect Insurance
- Civil Engineering Insurance
- Electrical Engineering Insurance
- Mechanical Engineering Insurance
- Structural Engineering Insurance
- Land Surveyors Insurance
Types of exposure that Architects, Engineers and Land Surveyors need protection from:
Professional liability: This is the big one. There is a huge potential for injury and death due to an error in design that results in structural, mechanical, or process failure. There is also a massive liability with water damage and mold issues due to inadequate design. In order to prevent this exposure, ensure that all employees who design have appropriate accreditation and licensing and that they meet continuing education requirements. The biggest reason lawsuits happen is because of simple mistakes made by the firm. The best way to prevent this is by having someone check the work. Make sure that calculations are checked and designs are reviewed internally by senior personnel. All design specifications must be followed and inspections regularly conducted.
Document everything. Especially document all changes! They must be clearly marked and authorized by both the engineer/architect and the customer. Respond immediately and proactively to concerns expressed by clients both during and after the project is complete.
Property exposure: What would happen if all of your records, computers, and books were destroyed in a fire? All information should be kept in fireproof cabinets. Invest in cloud backup technology.
Inland marine exposures: Do you travel to and from clients' offices carrying your laptop, receivables, valuable papers, and records? First, you will need inland marine coverage. Second, be sure to make duplicate copies of all important information and keep them stored off site.
Premises liability exposure: Do you have clients that come to see you at your office location? Off-site exposure includes having all employees submit to background checks and having a policy/procedure manual explaining how employees are to conduct themselves off site.
Automobile liability exposure: Do you and your employees use vehicles in performing their work? Here are few suggestions. First, do a motor vehicle record check on all employees before allowing them to drive company vehicles. Is there procedure/policy book for all drivers of company vehicles? Be sure to get a commercial auto policy to protect your accounting business.
Workers compensation exposure: Do you have employees performing repetitive tasks? Teach your employees how to reduce eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries. Invest in ergonomically designed workstations. Invest in a workers' comp insurance plan that will protect your employees and your business interests.
Here are the minimum recommended engineering insurance coverages:
- Business owners policy
- Business Personal Property
- Employee Dishonesty
- Accounts Receivable
- Valuable Papers and Records
- General Liability
- Employee Benefits Liability
- Professional Liability
- Errors and omissions
- Commercial Umbrella Liability
- Hired and Non ownership Auto Liability
- Workers Compensation
- Cyber insurance
Other Land Surveyor insurance and Engineers insurance coverage to consider:
- Business Income with Extra Expense
- Computer Fraud
- Money and Securities
- Special Floater
- Employment Practices Liability
- Business Auto Liability
- Physical Damage
How to get a free architect/engineer insurance quote
We offer a complimentary insurance consultation for all land surveyors, engineers, and architects. InsuranceHub will take the time to understand your business, clients, and specific industry-related liabilities and challenges. Contact us today at (877) 341-5728 to schedule your free, no strings attached, engineering insurance consultation today.