Design Engineering Professional Liability Insurance
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What is professional liability insurance for design engineers?
Today’s design engineers are at the forefront of developing new products, processes and prototypes for a variety of clients. However, if you’re a design engineer, you also run the risk of facing legal action if a client or third party accuses you of making a mistake or leaving out vital information on an engineering project.
Unfortunately, your commercial general liability insurance won’t cover claims based on the professional services or advice you’ve provided as a design engineer. That means you could be sued and held personally responsible for any financial damages that result from your work.
Fortunately, EasyCover offers coverage design engineers need. Our professional liability insurance insurance can help cover legal expenses stemming from any professional services or advice you’ve provided.
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 design engineers professional liability insurance cover?
EasyCover by Acera insurance offers essential protection for engineers involved in technical, product and system designs. If a client alleges that a design error or omission in your work led to a financial loss, failure or other issues, you could be held legally responsible.
Having professional liability insurance helps to shield you from legal action as long as there has been no intentional wrongdoings or illegal activity. To protect your career and limit your risk, we recommend securing professional liability coverage.
How much professional liability coverage do design engineers need?
Our professional liability coverage can protect you from lawsuits related to the design service you’ve provided. This critical insurance could cover your legal expenses costs along with any settlements or judgments (up to your policy limits).
With EasyCover by Acera Insurance, you can select from three levels of coverage:
- $1 million
- $2 million
- $5 million
These are the maximum payouts for any claims within a 12-month policy period. Design Engineers will require varying levels of coverage depending on the industries and clients you work with and the financial implications of potential lawsuits.
When it comes to claims, you’re responsible for paying the deductible cost for each covered claim. Your deductible amount is determined by your annual revenue is generally in the range of $250 to $1,500. Let’s say your deductible is $500 and you have two covered claims in a one year policy period. That means you’d pay $1,000 in deductible costs and you’d be covered for the remaining legal expenses, up to your policy limits.
E&O Insurance for Design Engineers
EasyCover insures various roles in design engineering, including:
- Mechanical Design Engineers
- Product Design Engineer
- Manufacturing Engineers
- CAD Technicians
- Design Release Engineers
If you don’t see your profession listed here, chat with us and we’ll see what we can do!
Common
claims scenarios for design engineers
Delivery delay
A new project schedule requires the testing to evaluate design and identify issues. Unfortunately, you could not meet the number of tests required as per schedule causing a delay in the project. The company will seek compensation for this delay.
Machine issue
A machine breaks down due to excessive weight. When investigating the company confirms that the weight is correct. Later they realize that the material used to build the parts of the machine did not meet the requirements. They will need to pause production to fix the problem. The client holds you responsible.
Inspections
When the project was at 50% completion, it is realized that there is a construction issue. Your client believes it could have been prevented if sufficient visits and inspections had been done. They hold you responsible for the financial loss.
Top factors influencing design engineers professional liability insurance rates
Professional liability insurance rates for design engineers can vary – this depends on factors like:
- The clients & industries you specialize in
- Your scope of services
- Your annual revenue & contract values
- Your claims & insurance history
- Your coverage limits, options & deductibles
- The province(s) you operate in
With our online quote tool, you can get an online quote and an idea of your professional liability insurance costs in only a few minutes.
How much does E&O insurance for design engineers cost?
On average, design engineers in Canada can anticipate paying between $990 to $1,320 per year for their professional liability insurance. Insurance premiums will vary based on your own specific details.
Use our quick quote tool to generate your own online E&O estimate. If you are comfortable with the price, continue to the next step to complete your purchase online. It’s that easy.
Risk management strategies for design engineers
While professional liability insurance for design engineers provides crucial protection, the most effective strategy is to prevent issues before they arise. By implementing proactive risk management practices, you can reduce liability risks, safeguard your professional reputation, and stay focused on delivering precise, innovative designs and solutions for your clients.
Clear Communication
Maintain transparent and proactive communication throughout every project. By clearly defining responsibilities and deliverables with all stakeholders, you can set expectations and help to avoid misunderstandings.
Quality Assurance
Establishing strong quality control measures and staying updated on evolving engineering practices ensures your designs meet professional and industry standards.
Thorough Documentation
Regularly back up all design and project data and ensure these backups are stored securely. To document communications and key decisions, always follow up any phone or in-person meeting with written confirmation.
Why design engineers rely on Acera Insurance and EasyCover for their E&O coverage
Canada’s design engineers look to EasyCover by Acera Insurance because we make it simple to get dependable and affordable professional liability coverage. With our online quote tool, you can get a free quote and buy your insurance in only five minutes. Just like the EasyCover name implies, we make things easy and efficient. And if you ever have questions about your coverage or need support after a claim, we’ll be there when you need us.
We also offer additional liability coverage options for design engineers.
Commercial General Liability Insurance (CGL)
A standard commercial insurance, CGL helps cover expenses if a third party is injured or has their property damaged as a result of negligence. A common example is someone slipping in your office. Be mindful that employee injuries and property damage are not covered by CGL.
Cyber Liability Insurance
Cyber liability is a coverage we strongly recommend for design engineering firms of all sizes. It helps cover costs (up to your policy limit) after a cyber-attack or data breach. This could include legal expenses, public relations fees, and regulatory fines.
Directors and Officers (D&O) Liability Insurance
If you run or manage a design engineering firm, this insurance can help cover expenses when you’re held personally liable for a breach of your duties (excluding criminal offences). It helps protect your personal assets when there are claims from employees, clients and regulators.
Ready to get your free design engineers professional liability insurance quote?
Simple answer a few questions to immediately receive a quote, bind your policy and pay online in only a few short minutes.