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Why Engineers Need E&O Insurance

Professional engineers are expected to provide mistake-free work to their clients. However, at times, errors occur when least expected and may cause serious damage to property or severe injuries. When this happens, the engineer who’s responsible for the project stands to lose a lot and may even be sued. To safeguard against such losses, engineers should take out an errors and omissions policy, also known as an E&O policy.


Even the most qualified engineer can make mistakes while carrying out his or her job, which may lead to serious repercussions. Sometimes, these mistakes arise from the failure of tools and equipment, accidental omissions, or design errors that result in structures that do not satisfy the client`s specifications. When this happens, the client may decide to sue the engineer. If the engineer is covered by an E&O insurance policy, then the insurer covers the cost of damages and reparations.

Workers’ Protection

The owner of an engineering firm may not personally be available to accomplish the projects or even inspect them, especially when the firm expands and there are several operations. This means that the owner must delegate projects to the engineering employees, which increases the risk of errors and omissions for which the company could be sued. An errors and omissions insurance policy comes in handy, since it covers errors caused by engineering employees in a firm.

Clients’ Protection

Sometimes, a contractor can undertake an enormous project and hire an engineer as one of the subcontractors. In such a case, the contractor who does the hiring becomes the engineer’s client. The client expects the engineer to perform and inspect the work to ensure that it is done correctly. An errors and omissions insurance policy protects the client in case the engineer ends up making costly mistakes.

Legal Charges

Professional engineers face a higher risk of being sued than people in other professions because most of their work is of a highly technical nature. A small error may occur, either accidentally or as a result of negligence, and lead to serious problems. Additionally, an engineer could be sued for designing a structure that causes property damage or physical injuries to members of the general public. If the engineer has an errors and omissions policy in place, then the insurance company will cover the cost of legal expenses. For more information on the benefits of having an Errors & Omissions Insurance policy or for help finding the right one, please contact Insurance By Design at 972-499-3414.

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