Engineering insurance is carefully tailored to suit the requirements of both engineers and their firm. Due to work being conducted, standard business insurance policies will not fully cover all of the potential risks that those working in engineering face. As such, it is important to find the right coverage that will suit the needs of your engineering business and cover you in the event of an incident.

When you look to create a safety net for yourself or your engineering business by investing in insurance, here are just a few insurance types to consider that can help with protecting your business.

1. Public Liability Insurance

Often a vital coverage for both engineers and most of the other traders, public liability insurance could protect you if someone sustained an injury or if their property is damaged due to the work you have conducted. Having public liability insurance in place will help top cover you at your business premises, as well as when you or your employees are working at a client’s site or if you are working in a public place.

2. Professional Liability Insurance

Obtaining professional liability insurance for engineers is essential as it covers you in the event of any claims regarding negligence. For instance, if a client you worked with feels as though their expectations for the work conducted were not met. Having professional liability insurance for engineers in place will help with covering the cost to defend your engineering services business.

3. Workers’ Compensation

Having workers’ compensation in place will cover your employees should they fall ill or sustain an injury whilst working. It will cover any medical expenses as well as a portion of their lost wages due to not being able to work. An employee will only be able to claim workers’ compensation if they were to fall ill or get injured due to their work, not for injuries sustained for unrelated work activities such as sports.

4. Employer’s Liability Insurance

If a worker has sustained an injury or suffered an illness due to their work, it is not covered by workers’ compensation. Instead, employer’s liability insurance is a legal requirement to have if your business has employees. It will cover your business against claims made by employees for things such as sustaining an injury or suffering from an illness as a result of the work they do. Whether they are part-time employees, or full-time, it is a requirement to have this cover protects you in the event of any of these claims.

The bottom line:

From professional liability to employer’s liability, having insurance in place will help you and your engineering business to continue working, despite any issues or claims that may arise. If you were a small engineering company, a lawsuit filed against you by a client could be detrimental to your finances, causing you to potentially severely struggle if you do not have insurance in place acting as a safety net. Countless risks can occur when operating without insurance in place. Whilst it might seem like an investment to obtain insurance, it will be a worthwhile investment should you encounter a lawsuit.