Engineers working on projects perform many tasks, and they may need liability insurance to protect themselves. From the design stage to the production and testing phases, there are many essential components along the way that must go smoothly. However, mistakes made during the process can result in potential injuries, property damages, and other liabilities.
Liability Insurance
Business insurance protects your company from many scenarios, including financial losses if lawsuits arise. Likewise, it is vital to safeguard your professional and personal assets with liability coverage in our increasingly litigious society. When someone files a legal claim against you citing an error, oversight, delay, or design flaw, the attorney fees alone present a significant expense.
Do Engineers Need Liability Insurance?
The job tasks of your engineering firm involve numerous aspects. Also, engineers design, build, analyze and maintain complex structures, products and systems. An error or miscalculation in one of the steps can result in costly delays or damages. Clients may sue for compensation related to negligence, mistakes, or failure to deliver contracted services.
The cost of legal fees, settlements, and judgments against you can be overwhelming for your company. Alternatively, with the right coverage in place, your insurance carrier responds to claims against an employee, manager, or partner acting within the scope of their employment. Without an adequate insurance policy, you could face staggering losses.
Why Should Engineers Consider Liability Insurance?
Regardless of the size of your engineering company, a liability policy shields you from monetary losses. Likewise, lawsuits can quickly incur expenses your business cannot afford. Due to your various professional responsibilities, you need customized coverages specific to your operation. A specialized insurance policy can cover:
- Consulting errors
- Design mistakes
- Management flaws
- Deadline delinquencies
- Equipment breakdowns
What Protections Does Business Insurance Provide?
Working with an experienced insurance company allows you to maintain a thriving operation in many ways:
- Legal verdicts: Your liability coverage helps you pay compensatory or punitive damages, settlements, and other legal judgments.
- Legal expenses: Besides paying monetary awards, your insurance policy can cover the associated court fees and attorney charges. These expenses can be substantial even if you win the case.
- Client security: Having a way to pay any potential damages offers protection for clients’ investments and gives them peace of mind while working with your firm.
When you own a company, the financial obligations stemming from legal claims can be devastating. Also, you could face having to sell assets to meet judgments against you. Depending on the scope of your project and the subsequent damages, a lawsuit could put you out of business entirely. Protecting your specific industry needs with risk management strategies and comprehensive business insurance is essential to safeguard your livelihood. Then, liability coverage guards against possible engineering mishaps or oversights, keeping your operation running with its good reputation intact.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
