There are many challenges that face today’s architects, engineers, and design professionals. While new technology brings vast improvements in the workflow, this comes with the price of expanding liability issues. The expectations of your clients can create many concerns since, while they would love for everything to run smoothly, things simply don’t always go according to plan. An architect or engineer will ultimately have to answer, at times to many different sources, while working to design these projects to their client’s specifications.
An engineer’s future business prospects can be dependent on their ability to deliver. A project could turn sour for any number of reasons and the consequences of a mistake during the process, for example, some mathematical error, could be costly and quite damaging. Errors and omissions (E&O) insurance, under an Axis Professional Liability policy, is of quite some value to engineers because, despite the best intentions, mistakes can often lead to a lawsuit.
E&O insurance coverage is a must
Also known as professional liability or malpractice insurance, E&O insurance provides protection to architects and engineers if a client or customer holds them responsible for poor results or any claims of negligence. E&O Insurance protects in the event of a lawsuit for any mistakes or an omission that a client claims has caused them financial loss.
Most E&O policies cover judgments and settlements as well as defense costs. Even if the allegations are found groundless, thousands of dollars will often be needed to defend a lawsuit. This could obviously bankrupt a smaller firm or individual and have a lasting effect on the bottom line of larger companies.
Any damages resulting from a delay in construction while design flaws are corrected can include interest on debt financing of the project owner or developer. In addition, any costs related to redesigning the project would also be included. In addition to impacting an engineer’s financial stability, litigation winds up damaging the reputation that took so long to build.
As a successful professional, you don’t want to open yourself up to more risk than necessary. Let the Axis Professional Liability team of licensed agents review your policy, analyze it carefully, and help protect you and your business from any unforeseen risks.