Indemnity Insurance for Engineering Consultants
An engineering consultant is a professional adviser who with his due diligence and reasonable skills provides assistance in engineering projects. Professional Indemnity Insurance for Engineering Consultants (PLI) covers negligent acts, errors, and omissions, which are inherent in professional services. Engineering projects can lead to defects, low-quality production, measurement errors, copyright claims, damaging reputation and finances.
Giving wrong advice or incorrect information can invite lawsuits from your clients. Be it a small project or a large firm, a slight negligence might result in project delays or breach of contract. This may invite negative results for a professional. In order to protect yourself from such claims, you should consider buying errors and omissions (E&O) insurance policy which is also known as professional indemnity insurance or PI Policy. If you as an engineering consultant do not conform to industries standards and serve unprofessionally, you will be held personally liable for professional negligence. It is the duty of a consultant to protect the interest of the client and provide services with professional care. No matter, if you are a mechanical engineer or a software engineer or an electrical engineer, you are personally liable for your professional actions and services.
Read About: How Is Indemnity Defined Under Professional Indemnity Insurance?
As a mechanical engineering consultant, your wrong measurement suggestion caused design defects and wasted production. In such a case, the incorrect decision of the engineer holds him liable. It is important to buy professional indemnity insurance as lawsuits are increasing day by day against professionals. A professional indemnity or liability insurance will cover you against all such claims resulting from negligent work and any errors while performing the duty. Intentional faults are, however, not covered under errors and omissions insurance. Professionals should take all precautions to avoid apparent emerging probable loss.
Case: Importance of Engineering Consultant Insurance
A civil engineer consultant has got a contract for designing a smart city. The contractor provided all the requirements and specifications regarding the design and structure of the building. The Civil Engineer Consultant disregarded specifications, used lower-grade materials, posing a significant problem. He has been sued by the contractor and was asked to pay for the losses incurred. In this case, the civil engineer consultant will have to bear the financial repercussions for the errors he has committed, as he didn’t buy professional indemnity insurance so he has to fight the court case and pay litigation cost by himself. If the engineering consultant had purchased professional indemnity insurance, the insurance company would have borne all the costs, avoiding negative market impact on his reputation. Error and omission insurance or PI insurance policy offers financial protection to a professional when he does not serve in accordance with the employer’s requirement.
Also read: Is Professional Indemnity Insurance Worth It?
To summarize, Professional indemnity Insurance for Engineering Consultants provides peace of mind and security, enabling professionals to perform services confidently. Safeguard your business services from litigation cost incurred against error or omission or negligent claims. An engineering firm may face claims for design defects, contract breaches, delays, wrong advice, or misinformation, leading to costly expenses. Perform your professional services confidently with the availability of professional indemnity insurance, and don’t worry about such claims.
Keep Reading: How Much Professional Indemnity Insurance Cover Do I Need?
