Engineers face a changing job as it is, but they also face the risk of being sued by clients. Even though engineers are widely respected for their knowledge and skills, they can still make mistakes that cost clients money. Errors & Omissions (E&O) coverage allows engineers to focus on their work and let E&O insurance pay for lawsuits.
The main reason to carry E&O insurance is that no business is perfect, and mistakes are bound to happen. Instead of letting mistakes lead to costly lawsuits that drain a company's capital, an engineering firm can protect against high court costs because E&O coverage pays for it. This coverage pays even settlements.
E&O insurance protects engineers and other professionals against legal claims such as misrepresentation, missed deadlines, flawed design, and negligence. When services are not delivered as described in a signed agreement, it can lead to a breach of contract claim, which E&O covers as well.
Engineer clients may complain if an engineer's design confuses builders and leads to improper construction. Several other mishaps may cost the client extra time and money, which can trigger a legal complaint. Many engineering projects get delayed for numerous reasons, but if the delay leads to losses for the client, it can result in a lawsuit. E&O insurance simplifies the issue and can repair the engineer's relationship with the client.
Engineers earn a high income for their expertise and skills. Since project developers hold them in high regard, many clients are steered in a direction based on an engineer's advice. Companies that contract with engineers often require them to carry E&O insurance as a risk management solution.
Client satisfaction is at the core of every successful business, so engineers need to aim to meet client expectations. Even if you are a freelance engineer, it's a good idea to carry E&O insurance because it demonstrates professionalism and responsibility. Successful engineers rely on building reputations that reflect quality. But they also need to fix troubling situations that can damage relationships. Be aware that many seasoned clients may request proof of E&O coverage before signing a contract.
Engineers should be equipped with plenty of liability insurance beyond E&O. They can either purchase a commercial general liability plan or buy a Business Owners Policy (BOP) if they own their property. Many small businesses choose BOP because it provides a deal for combining general liability with commercial property insurance.
You never know when one of your clients might suddenly decide to sue your company because they don't like something about it. That's why many professionals, such as engineers, protect themselves with Errors & Omissions insurance. At CF&P Insurance Brokers, we make it easy to create an insurance policy that matches your business. Contact us today for more information on how E&O insurance can financially protect your business.[gravityform id="1" title="true" description="false"]