Insurance for Civil Engineers – what you need to know

civil engineers

You’ve put in the hard-yards to build your engineering business, so it’s important to think about what kinds of business insurance coverage you may need to help ensure it is protected. As much care as you may take to prevent things from going wrong, not everything goes to plan, especially when you’re working on a job or project. Issues with sub-contractors or lengthy delays with construction due to bad weather, are just some of the things that are out of your control. Engineering is a profession that comes with a great deal of responsibility and a certain level of risk.
Some of the typical examples of risks that civil engineers face include allegations of professional negligence, incorrect design or specification, poor time and project management. Having the right business insurance in place is a sound investment when it comes to protecting your business for the long haul.
The world of business insurance can feel a bit overwhelming, but fortunately, it doesn’t have to be. Understanding these key risks and how you can be covered, could save you from being held personally financially responsible for legal fees and compensation costs, which could have a devastating impact on your business.

Professional Indemnity insurance

Professional Indemnity insurance is a type of insurance coverage selected by professionals, including civil engineers. Professional Indemnity (PI) insurance* is an important form of protection for businesses that provide specialist services or professional advice. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. Professional Indemnity insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy.
As an engineer, you are considered an expert in your field, with a duty of care when providing your professional services and advice to your clients. A dissatisfied client may allege that you have breached this duty of care and claim compensation from you. Regardless of whether the negligence is actual or just alleged, the legal cost and time involved with defending a claim can take a toll on your business and its daily operations. Having Professional Indemnity insurance for Civil Engineers means that you and your business can be protected in the event of a costly claim.
It is vital to know the difference between Professional Indemnity and Public Liability insurance, as these are two very different covers that offer protection for different types of risks.

Public Liability insurance

Civil Engineers should also consider Public Liability insurance. Public Liability insurance is designed to provide protection* for you and your business in the event a client, supplier or a member of the public are injured or sustain property damage as a result of your negligent business activities. Allegation of professional negligence are typically excluded from cover.

Business Insurance

Business Insurance can provide cover for your business assets* including its premises, contents, stock and in the event of business interruptions. This could include coverage for unexpected events like the theft of or damage to your portable valuable business assets. Some of the other things Business Insurance can also provide cover for include Building insurance (if you own your building) Contents and Machinery breakdown.

Cyber Liability Insurance

If your engineering business relies on storing sensitive client information and data, then you may want to consider Cyber Liability insurance. A Cyber Liability insurance policy is designed* to help protect you from claims and support your profitability in the event of a cyber breach or attack. Costs associated with defending a cyber claim are also covered. Examples of the types of risks Cyber Liability insurance can assist with are inadvertent loss or release of customer personal information, cyber crime, cyber extortion/ransomware and business interruption due to a cyber event.

Level of Cover

When it comes to the right level of cover for engineering businesses, there’s no fixed answer as each business is different and has its own level of risk. Holding the appropriate level of cover is just as important as having the right type of insurance in place.
Regulatory bodies and clients in their contracts will often outline the type of insurance and minimum level of cover required. This is a good place to start when trying to figure out which level of cover your business requires.
Also have a think about how much a claim may cost if it were made against you, the cost of defending it in legal fees and the potential compensation awarded if you are found negligent. This can help when trying to calculate what level of cover to take out to protect your business.

Get Insured

The next step is getting your engineering business insured. Receive multiple quotes online in minutes or contact our helpful team to have a chat about arranging your cover.

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.

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