An engineer is a person whose occupation involves planning, designing, building and evaluating infrastructures, systems or machines. Although there are many different fields in engineering ranging from chemical to mechanical, they are all subject to the same criticism and unintentional accidents that could happen to anyone. Hence, insurance should be researched to find alternative options to battling claims with hard-earnt business money, which can cost hundreds of thousands of pounds for bigger-sized engineering companies.
Types of Engineer Insurance
There is no one-size-fits-all solution to engineer insurance because each business is vastly different, but some general types of cover would suit any engineer.
1. Professional Indemnity Insurance
Professional indemnity insurance is by far the most popular insurance with engineers because it deals with errors in judgment, confidentiality breaches, and most professional mistakes and bad advice given to clients, which could provoke them to file a lawsuit. In addition to this, libel and slander regarding the third party are also compensated for, which makes this cover even more special and extensive.
Imagine a large engineering company with hundreds of clients to demonstrate this. It can be challenging to keep track of every document that the company keep, and they have not switched to computers yet, so they are all papers. If these confidential documents are somehow lost and contain important information regarding the project or customer, the customer may sue for negligence. Professional indemnity insurance can cover the majority of the legal fees, depending on the level of cover concerning the policy and the cost to rectify any financial damage caused to the client.
2. Public Liability Insurance
Public liability insurance protects the public, like customers, the local community, or even passers-by, should they be physically injured at the worksite or their own home due to the engineering services provided. As professionals in this occupation often work with heavy machinery or sharp objects, this is a safety hazard. Still, even with precautions, a third party like the customer should get hurt if they trip over them or knock them over.
Likewise, if an engineer goes to a client’s house to meet and discuss a project, they could unintentionally break their belongings when entering the house. Public liability insurance provides a payout to recompensate for the broken item or medical expenses if they were hurt.
3. Tools Insurance
Following on from this, equipment and tools insurance is vital. Wrenches, chains, saw, pliers, bolts and screws are just the tip of the iceberg concerning the types of appliances necessary, and thus protecting these can save the business from detrimental financial loss should they be stolen or damaged. Although most tools are inexpensive, there is some more extensive and heavier equipment which is more costly.
So it is worth considering only insuring the most valuable items, as this way the premium would be cheaper and there would still give peace of mind. This often covers natural disaster damage like fire, flood or storm, and if the equipment was stolen on the worksite.
4. Auto Commercial Insurance
Auto commercial insurance is only aimed at the engineers who drive cars for work purposes, but this is the majority as driving to project sites, customer houses, and gathering materials is every day. Business car insurance can also be combined with regular car insurance, which combines the use of leisurely activities and business.
However, this is more expensive. During the workday is when most accidents occur and when an engineer would most likely be driving, making it riskier for an occurrence like a crash. In addition, drivers are prone to accidents caused through no fault of their own but would still need to pay for the damages caused. Auto commercial insurance covers the cost of car repairments and often medical expenses.
The law requires employers’ liability insurance, but only if a business hires employees, and therefore, this would not be compulsory for an independent engineer that works by themselves. Such a cover ensures that if a worker is hurt on the site, which is a high possibility if you work in a more dangerous career that involves using hazardous equipment, their lost income whilst they recover is recompensated. Furthermore, the treatment for the injuries sustained is also covered, as long as they were caused directly due to work purposes.
In conclusion, engineer insurance should cover the worker, client, community, equipment and vehicles. Obtaining all of these covers protects against financial loss that can be prevented, allowing your business to develop worry-free.
Find out more about the importance of insurance here.
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