Have you dreamed of putting your math- or science-savvy brain to use helping create the building blocks of our society as an engineer? It’s a challenging profession with applications across many industries, from energy to medical, transportation, technology and more. No matter which degree path and specialization you pursue, engineering jobs all require keen problem-solving ability.
Any time you’re providing clients with professional advice or services, there’s a need for financial protection. Why? Because one dispute could end in a costly, reputation-damaging lawsuit. Engineers’ business insurance is a critical line of defense against unanticipated financial catastrophe in many forms. Here are just four reasons why engineers need business insurance.
A client accuses you of faulty designs
It’s impossible to know with 100 percent certainty how successful designs or models will be when they come to fruition. What if a client accuses your design of failure? Or they accuse you of breaching your contract when the drafts you provide them aren’t what they expected? Or did you simply make a mistake in your calculations?
Professional liability insurance (commonly called errors and omissions coverage) “will pay the cost of legal defense against claims and payment of judgements against you, up to the limit of the policy” if you face a lawsuit stemming from unintentional negligence or inaccurate advice.
Your computer network is hacked
The days of pencils and draft papers alone are gone—now you access your most critical information (and your clients’) electronically, perhaps through an internal server or cloud network. But even small businesses—engineering firms included—are not immune from cybersecurity breaches these days. According to one report, hackers have breached half of U.S. small businesses in the last 12 months. The fallout can alienate clients and send costs soaring unless you have a cyber insurance policy in place.
A natural disaster interrupts your business
Come wind, lightning, fire or hail, you still need to make a living. The difference between getting back on your feet after a natural disaster or not can hinge on having property insurance with business interruption coverage. In case an event covered in your policy occurs, you’ll have one less thing to worry about with business interruption coverage to help you relocate and pay your bills in the interim.
You need proof of insurance to lease space
If you ever consider opening your own firm, adequate commercial space in the right location will be crucial for setting up a headquarters. But what if the perfect property slips through your fingers because you lack the required general liability coverage? Landlords and sellers both like to see general liability insurance in place before they hand over the keys in case your operations cause someone injury or property damage (in which case you’ll also be glad to have this financial protection).
As an engineer, you know it’s impossible to predict every single outcome—though you sure can try. The best offense is a good defense, which is why engineers need business insurance to back up their professional endeavors. Compare quotes with CoverHound for free and find the protection you need.