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Insurance Considerations for Engineering / Construction Projects

For most engineering projects, the standard policies your business already has in place should address most of the risks you'll face on the job. Take, for example…

  • General Liability Insurance. This policy covers accidental injury or property damage to third parties. So if you accidentally damage someone's property while working on a nearby project, this policy helps cover the repair costs.
  • Workers' Compensation Insurance. If your project manager is injured while observing an excavation, your coverage can pay for their medical expenses. (Worth noting: nearly all states require employers to carry this coverage.)
  • Errors and Omissions Insurance. Say once a project is complete, the client claims they were misled about the cost of your services, and they sue your business for damages. E&O coverage helps mitigate legal expenses when you're sued for professional negligence, breaches of contract, or defects in your work.
  • Property Insurance. Maybe you don't have construction equipment to worry about, but chances are you probably bring a laptop or tablet when you supervise projects. Good thing your Property Insurance can pay for repair or replacement costs if your gear is stolen.
  • Cyber Liability Insurance. Much of your work takes place on computers these days, which means you face risks without even stepping out of the office. For example, when you handle sensitive data or work on a computer network as part of your project, a cyber criminal can steal your information. This policy can help your business recover after a data breach.
  • Commercial Auto Insurance. If you drive a company car or your business provides vehicles so employees can drive to worksites or client meetings, your Commercial Auto policy can cover property damage and liability expenses stemming from accidents.

As wide-ranging as these policies are, however, they may not provide enough coverage for firms working in certain fields.

Project-Specific Insurance for Engineers

Project-Specific Insurance for Engineers

When starting certain types of engineering work, you may confront exposures that aren't covered by your standard small business insurance policies. For large-scale construction work or civil engineering projects, you'll likely collaborate with construction professionals who require specialized insurance coverage.

Depending on your employment arrangement, you may need to look into acquiring project-specific policies that cover…

  • Builder's risk (i.e., damage to a building during construction).
  • Machinery breakdown.
  • Start-up delays.
  • Project cargo.
  • Latent defects and inherit defects.

Not all insurance carriers provide these specialized policies. Often, you'll need to find a carrier that works exclusively with heavy industry. These policies can be in place for the life of the project or longer, if need be. Make sure you review your insurance requirements before signing on to a large-scale construction or civil engineering project.

Engineer Insurance for Small Businesses

Engineer Insurance for Small Businesses

If your firm still needs standard insurance policies — either for the life of your business or in anticipation of a project — fill out an online application. Our agents can help you determine which policies your engineering business needs.

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