Engineering work is complex and involves unique expectations and financial risks. Then, of course, there are the general risks that all businesses face. So, it’s important for engineering firms to assess their risks and get business insurance to cover them.
There are six types of insurance that, as a group, we call engineering insurance. They are: professional liability insurance (also called errors and omissions insurance), general liability insurance, business owners policies (BOPs), workers’ compensation insurance, commercial auto insurance, and umbrella insurance. Each protects engineering firms from different types of risk.
It’s important to get all of the policies that are relevant to your business, since the cost of an incident that isn’t covered by engineer insurance can be more than a small engineering firm can take on. Sadly, many small companies go out of business every year as a result of large financial burdens from lawsuits and other expenses they hadn’t prepared for.
This article explains engineer insurance—what it is, what it costs, and what kind of real-world incidents it covers.
At biBERK, we offer the six types of small business insurance for engineers below. You might require some or all of them, and your coverage can be customized to meet your specific needs.
Something that surprises many business owners about small business insurance for engineers is that the policies are very affordable—and even more so if you buy insurance from biBERK, since we sell directly to you and not through brokers so our policies can be up to 20% less than those from other providers.
Your engineer insurance cost will depend on factors like the size of your business, your claims history, and others. However, you can get fast, free, self-service engineering insurance quotes for the policies you need online whenever it’s convenient for you. You can also purchase policies in as little as five minutes, manage them, and report claims on the biBERK website. And, of course, if you have questions, our licensed insurance experts are happy to assist you.
Professional liability insurance (or engineering errors and omissions insurance) is critical for engineering firms. Imagine that you design a bridge with a flaw that subsequently causes it to fail and people are injured. Your policy can cover what’s called “contingent bodily injury and property damage,” meaning that costs related to lawsuits over the bridge collapse can be paid. You may also be covered if you’re a mechanical engineer, you design a product for a manufacturer, and that product causes harm to someone.
Then there are things like slip-and-fall accidents, which happen every day. Say someone making a delivery to your office suffers a fall when the handrail on a stairway breaks. They might sue you for the cost of their medical care. A general liability policy or a BOP can cover the costs associated with this type of incident.
Commercial auto insurance provides important protection if your engineering firm owns or leases vehicles. Let’s say you accidentally back into another vehicle in a parking lot and the owner sues you. Your commercial auto policy can cover the cost of that lawsuit and also can pay for repairs to your vehicle.
The real-world claims examples above are just a few of the kinds of incidents that can impact engineers and engineering firms. Fortunately, with engineering insurance from biBERK and a team of licensed insurance experts that’s eager to assist you, you can be confident that your business is protected and keep your attention on delivering great work.