As you already know, each industry has its own set of risks. Engineers, architects, and designers have several unique concerns of their own. Their intricate, precise work means they have to be especially cautious about professional liability lawsuits. Read on to review which policies can best protect these professionals from their common exposures.
Engineers, architects, and designers require a great deal of professional training to provide top-notch services. That expertise is a double-edged sword: it helps your clients grow their business, but it also exposes them to negligence claims if they fail to uphold certain industry standards. With these considerations in mind, your engineering and design clients may wish to carry:
Professional Liability / Errors & Omissions (E&O) Insurance
A miscalculation or design flaw could land your engineering, architecture, or designer client in the middle of a lawsuit over the financial losses their alleged mistake caused. Professional Liability, also called Errors and Omissions (E&O), pays your client's legal fees if a third-party claims their professional services or advice were incongruent with industry standards and resulted in economic losses. E and O can cover attorney fees, court costs, and judgments.
General Liability Insurance
General Liability is the cornerstone of most risk management plans. It protects your clients when a third party, such as a subcontractor or a customer, claims your client is responsible for their physical harm or property damage. For example, if your interior design client accidentally ruins artwork in their customer's home, GL Insurance covers litigation fees if the customer decides to sue.
Property Insurance / Business Owner's Policy (BOP)
Architects, engineers, and design professionals rely on their equipment to deliver their services. For instance, they may have office space, computers, and other business property that requires protection. Property Insurance pays to repair or replace these assets when they are damaged by a covered event, such as a fire or windstorm. You may want to see if your client qualifies for a Business Owner's Policy (BOP ), which bundles Property and General Liability Insurance together at a reduced rate.
Workers' Compensation Insurance
Because most states require employers to carry Workers' Compensation Insurance, your design clients may be obligated to purchase this coverage if they have even one employee. Workers' Comp covers their employees' medical expenses and replacement wages when an occupational injury keeps them from work. It can also include coverage for your client's legal fees if their injured employees sue for negligence.