Engineers need insurance as they are at increased risk of having a sizeable claim brought against them. Due to the nature of the industry, build projects are a massive responsibility and if things go wrong, the sums involved in rectifying a mistake can be eye watering!
The margin of error is a pretty huge one, anything from an error in a design to a simple administrative error could see a claim brought against you. With this said, it clearly makes sense to have a comprehensive insurance plan in place to help protect you from this.
So, what does each insurance cover protect you against? Here is a quick guide to engineers insurance to help to get an idea of what cover you need.
Public Liability Insurance
Any business operating in a work environment requires public liability insurance in case harm is caused to an individual or their property through the fault of the business. This is perhaps most important for freelance engineers due to regularly working on different sites and leaving machinery unattended. The smallest mistake can result in injury, death, or damage to property, and a successful claim could be very damaging to your business and professional career.
Professional Indemnity Insurance
This insurance can cover you against :
- Allegations of professional negligence
- Inadequate design or specification
- Lost or damaged documents
- Incorrect certification
- Breach of data
These are some of the accusations engineers can face when working with a client. It can result in a damaged reputation, stress, and it could be very expensive to put right. That is why freelance insurance is a necessity for professional engineers. Other than being able to pay to rectify the damage, insurance will provide you with expert legal advice.
While professional indemnity insurance is not mandatory in the UK, corporate clients will often stipulate in the contract that you must have it. It is, however, a good idea for all freelance workers as it will give both yourself and your client’s peace of mind that the work will be completed to a satisfactory quality.
Long term future
Although the initial outlay can be hard to stomach, being able to grow your business without having to give up when you are faced with hurdles is vitally important. As a freelance engineer, you are likely to be relying on yourself at all times, and making sure you’re covered will mean you can always rely on your hard work and reputation being protected from life’s mishaps.