If you’re an engineer, your work is technical, precise, and high stakes. A calculation error, a design oversight, or a miscommunication with a client can lead to a claim against your firm — even if you did everything correctly.

General liability insurance generally protects you if someone gets hurt on your job site or if your work causes physical property damage. But it does not protect you from claims related to your professional services.  This is where professional liability insurance comes in.

What Is Professional Liability Insurance for Engineers?

Professional liability insurance, also known as Errors and Omissions (E&O) insurance, protects engineers if a client claims your work caused them financial harm due to a mistake, an error in judgment, or a failure to deliver as promised.  Simply put, they are alleging that you breached your professional duty.

This type of claim does not require physical damage to trigger. A structural engineer whose design requires costly modifications of a foundation, a civil engineer whose drainage plan causes flooding, or a mechanical engineer whose specifications result in mold growth in a building can all face significant claims without a single physical injury occurring.

Even if the claim against you is completely frivolous, the cost of defending yourself can be substantial. Professional liability insurance coverage handles both the legal defense costs and any resulting settlements or judgments.  Many times, many of the Professional liability insurance policies will have a pre-claim provision in them which provides help to mitigate a high-risk situation with the hopes of preventing a claim from developing.

Why General Liability Is Not Enough

Many engineers assume that a general liability policy covers everything, which is incorrect.  It is not designed to cover the financial losses a client suffers because of an error in your professional work.  More specifically, these policies typically have a professional services exclusion which engineering services fall under.

In general, general liability insurance policies will not respond to claims which are alleging errors or omissions that result from engineering services.

Most project owners, municipalities, and larger clients will require proof of professional liability insurance coverage before work even begins. Without a professional liability insurance policy you may find yourself unable to bid on the contracts you want.

What Does a Professional Liability Claim Actually Look Like?

Here are a few real-world scenarios where professional liability would respond for an engineer:

A structural engineer designs a building component that fails to meet load requirements. The client must hire another firm to redesign and reconstruct the affected area at significant cost.

A civil engineer’s site drainage plan results in water intrusion into a neighboring property. The neighbor files a claim for damages against the engineering firm.

A mechanical engineer specifies an HVAC system that underperforms for the building’s actual usage. The building owner incurs ongoing energy costs well above projections and seeks compensation.

In each of these situations general liability likely will not respond. Professional liability likely will.

How Much Coverage Do You Need?

Coverage limits for professional liability vary based on the size of your firm, the types of projects you work on, and the contract requirements of your clients. Many engineers carry limits between $1 million and $2 million, though firms working on larger infrastructure or government projects often carry higher limits.

An independent broker can review your client contracts to help you meet the insurance requirements.

Why an Independent Broker Makes a Difference

Unlike agents who represent a single insurance carrier, independent brokers like DKB Group LLC work with multiple carriers to find the coverage at the most competitive rate. We market your account every year, not just at renewal, to make sure you are always getting the best deal available in the marketplace.

With over 50 years of combined commercial insurance experience and licensure in 44 states, DKB Group works with engineers across every specialty including civil, structural, mechanical, electrical, geotechnical, and more.

Ready to make sure your firm has the right coverage in place? Get a quote today.