Errors and omissions insurance for engineers, also known as Professional Liability Insurance, is an essential component of any successful engineering firm. Because the stakes are high for perfect project completion, even minor mishaps can result in financial ruin for you and your engineering firm without the proper insurance coverage. If your engineering firm gets sued for potential errors made, get ready for an expensive legal battle, unless of course you are prepared with errors and omissions insurance.
What are the Deductibles and Coverage Limits?
Because each errors and omissions insurance plan is different, so are the coverage limits and deductibles. Depending on the needs of your engineering firm, you may choose to set up an insurance plan with a low or high deductible, which is the amount you must pay out of pocket before the insurance kicks in. Deductibles for this type of insurance may be anywhere from $1,000 to $25,000 per claim. You will also need to decide which coverage limit amount is best for your business. For this type of insurance, coverage limits are generally sold in increments of one million dollars.
How Can I Ensure Proper Coverage?
While it may be difficult for some small business and startups to qualify for comprehensive errors and omissions insurance for engineers, most engineering firms can easily arrange for proper coverage that will meet their unique needs. For more information about what type of coverage is right for you, contact a trusted insurance agency today.