Professional Liability Insurance for Calgary Engineers
Calgary engineers face exposure to risk when designs or specifications are questioned. Professional liability (E&O) insurance helps manage claims tied to errors in technical planning or oversight.
Errors and omissions insurance for engineers in Calgary
As an engineer, failure to meet the terms of your contractual responsibilities can have serious consequences. Professional liability insurance in Calgary, otherwise known as errors and omissions (E&O) insurance, acts as a safeguard from the financial impacts of a lawsuit if a client brings a claim against you for professional negligence, errors or omissions in your services as an engineer. If you are sued as a result of damages that are covered under your insurance policy, E&O would cover the legal costs related to your defence.
Interested in purchasing your professional liability online in minutes?
Acera Insurance offers EasyCover where you can get a quote, bind your policy and pay online in only a few short minutes. Get comprehensive coverage and affordable rates quickly and easily.
Here are some of the benefits of EasyCover:
- Get free online quotes 24/7
- No long, confusing applications to fill out
- Purchase and manage your policy online
- Support by phone, email or chat
- Option to bundle with other coverages
What does professional liability insurance for Calgary engineers cover?
Professional liability insurance helps professionals, like engineers with a specific area of expertise who contract out their services, protect themselves from financial loss due to professional mistakes. The insurance will help cover legal defence costs, settlements and judgments arising from lawsuits.
Coverages include:
- Negligence
- Errors and omissions
- Legal costs
- Financial loss
- Product failure
- Misrepresentation
- Breach of confidentiality
- Failure to deliver services
It’s important to review exactly what type of coverage your professional liability includes when determining the amount of coverage you will need.
How much professional liability coverage does a Calgary engineer need?
Acera Insurance’s EasyCover program offers three limits of professional liability insurance for engineers in Calgary:
- $1 million
- $2 million
- $5 million
The policy limit is the maximum amount your insurer will pay if you have a covered claim. The amount of coverage that you need can really depend on your profession, company and the amount of people potentially impacted by a professional mistake.
While a $1 million limit can sound like a lot, that money can quickly be eaten up by legal costs, settlement and judgments as it moves through the court system. Research the average payout for a professional liability lawsuit in your engineering field and how common they are to help determine what your policy limit should be. In most cases, we advise carrying a minimum of $2 million in coverage.
E&O insurance for Calgary engineers
We’re able to offer professional liability coverage for the following types of engineers in Calgary:
- Acoustic engineer
- CAD/CAE engineer
- Chemical engineer
- Civil engineer (excluding structural)
- Draughtsman
- Electrical engineer
- Electrical inspectors/appliance tester
- Expert witness (engineer)
- Feasibility study consultant
- Geologist
- Health and safety consultant
- Heating and ventilation engineer/HVAC engineer
- Mechanical engineer
- Mining engineer
- Oil and gas engineer
If you don’t see your profession in this list, connect with an EasyCover advisor.
Calgary engineering E&O claims examples
There are a variety of circumstances in which an errors and omissions could lead to a claim. They include:
Mechanical engineer: HVAC system design flaw
You made a miscalculation in the design of an HVAC system for a new hospital that results in inadequate air exchange rates. This causes delays in the building’s occupancy and added construction and remediation costs while the system is being fixed. Your client holds you financially responsible for the costs of corrective work.
Oil and gas engineer: Pressure conditions lead to unplanned shutdown
When designing a refinery upgrade for an oil and gas client, you fail to account for certain pressure conditions that lead to unplanned shutdowns. The operator claims lost revenue and additional engineering costs, and the client sues you to help negate some of the costs.
Electrical engineer: Misconfigured control system
When working on a project for a water treatment plant, a misconfigured control system leads to operational malfunctions, resulting in a lawsuit alleging negligence and demanding reimbursement of corrective costs by your clients.
It’s important to note that all EasyCover policies include retroactive coverage. As long as you have an active insurance policy with us, your policy would still respond even if a former client from a project completed years ago makes a claim against you.
What factors influence professional liability insurance rates for Calgary contract engineers?
Professional liability insurance can start as low as $330 a year if you’re a one-person operation that brings in less than $50,000 in annual revenue.
The cost of your professional liability insurance is influenced by several factors that include company revenue, the size of your team, what type of work you do, if your company operates outside of Alberta and your insurance options.
How much does E&O insurance for Calgary-based engineers cost?
Some examples of what engineers in Calgary could expect to pay include:
- An electrical engineer making $125,000 each year could pay $1,716 per year for a basic $2 million professional liability policy.
- A mechanical engineer earning a yearly income of $230,000 would pay $2,453 annually for a $2 million base level professional liability insurance.
To ensure that you are fully covered against the unexpected, we also offer add-on coverages that include:
- Cyber liability for $150 per year.
- Commercial general liability starting at $275 annually.
- Directors and officers’ liability beginning at $150 yearly.
Risk management strategies for Calgary contract engineers
Risk Assessments
Before starting a project, conduct a comprehensive risk assessment. Identify potential technical, financial, safety and scheduling risks. You can do this through brainstorming sessions, site reviews and stakeholder interviews.
Accurate Records
Keep detailed records of all contracts, agreements, timelines and deliverables. You should have terms that clarify your liabilities, change orders, payment schedules, dispute resolution and intellectual property rights.
Thorough Reviews
Implement robust design reviews to maintain regulatory and code compliance. Schedule peer reviews and third-party evaluations at key milestones of the project so you can identify and correct errors before they escalate.
Clear Communication
Adopt strong communication protocols for reporting issues, approving changes and updating your stakeholders. This helps to improve transparency and supports quick decision-making. Don’t forget to document and save all communications to help protect against disputes and claims.
Additional liability coverage options for Calgary engineers
EasyCover offers engineers in Calgary additional optional coverages to strengthen your protection. They include:
Commercial General Liability Insurance (CGL)
One of the most important types of business insurance, commercial general liability insurance helps protect you from claims of property damage or bodily injury arising from your operations and/or services.
Commercial general liability covers a wide range of incidents and will apply whether the incident happens at your office, at a client’s home or job site, or another location where you’re working. It’s important to note that this coverage doesn’t include your own tools, equipment or business property.
Coverage for EasyCover’s CGL policies start at $1 million but you can choose higher limits depending on your needs.
Directors and Officers (D&O) Liability Insurance
Directors and officers liability insurance provides protection if you face personal lawsuits alleging wrongdoing in your capacity as a director or officer of an organization – whether it’s your own business or another organization. Please note criminal acts or penalties are not insurable under law and therefore not covered under a D&O policy.
Cyber Liability Insurance
Digital threats that include cyberattacks, privacy breaches and data theft are an ongoing concern for engineering firms. Cyber liability insurance can offset the expenses from a security failure that might lead to ransom demands, operational downtime, legal expenses and reputational recovery. Cyber coverage terms can vary by policy so it’s important to examine your wording closely, with the help of your EasyCover broker, to know what is included.
Why Calgary engineers trust EasyCover for their E&O coverage
At EasyCover, you can obtain a quote and buy professional liability insurance within minutes. Our professional liability insurance brokers understand the unique needs and risks that engineers face and are here to help you build a comprehensive insurance plan at affordable prices.
Benefits include:
- Instant online quotes for insurance that you can pay for and confirm in less than 10 minutes.
- The ability to manage your policy 24/7.
- Access to our team of expert brokers who are available by phone, email or live chat.
- Bundling options to ensure you’re fully covered.
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