RISKPRO Professional Liability Insurance Blog

The most important type of insurance for engineers is professional liability insurance, also known as errors & omissions insurance. 

It is a wonderful moment when you are able to hand over a completed schematic and then watch as your  work comes to life.  Unfortunately, this is also when your exposure to professional liability claims begins. Though we would all love to go about our day without having to deal with anything but our primary business at hand, statistics show that risk management is one of the most vital aspects of an engineering firm's financial well-being.

As we understand, the Tennessee Department of Commerce and Insurance (www.tn.gov) requires home inspectors to provide proof of general liability and professional liability/errors and omissions (E&O) insurance in order to maintain their license.  The general liability insurance must have a minimum limit of $500,000.  The professional liability/errors and omissions insurance does not have a specified minimum limit requirement.

Sometimes change can affect more than you think. Your life insurance needs, for instance, are as dynamic as your life itself.  Does your life insurance policy still fit current circumstances and objectives?

Many professionals work hard during their working years and build up a retirement income plan for their retirement years.  There can be nothing more devastating to a retirement income plan than unexpected costs from chronic illness.

Many small business owners believe putting a small business retirement plan into action will either cost too much money or take up too much of their time in administration duties or compliance with government regulations.

Design professionals and other professional services firms will understand the risk management needs met by professional liability insurance but often overlook the importance buy-sell agreements.  If you are an owner, or co-owner, of a professional services business, or any other type business that wants to plan for success, you need to be aware of the benefits provided by the inclusion of buy-sell agreements in your risk management portfolio.

In the legal field, there are multiple duties that must be completed each and every day that could be covered under your professional liability insurance. Although you may feel as though you have everything covered, there are times when the job becomes so chaotic that even the most experienced lawyer can forget a small detail. Unfortunately, even a small, seemingly unimportant detail can turn into a bigger issue if your client claims negligence. The expenses related to a lawsuit of this size will not only compromise your professional credentials, but they can cripple the finances of your company.

As we understand, the Arizona Board of Technical Registration (www.azbtr.gov) requires home inspectors to provide proof of professional liability insurance or a surety bond in order to maintain their license.  The insurance must have a minimum limit of $100,000 per occurrence, $200,000 aggregate or the bond must be in the amount of $25,000. 

Beyond providing what is basically malpractice coverage to policyholders, professional liability insurance often includes a number of potential cash benefits that can easily go unnoticed, especially during the rush of the claims process.  The terms and availability of these benefits, called supplementary payments, vary widely between insurance companies and are often presented as a footnote to primary limits on a professional liability policy.  Five of the more common and/or useful supplementary payments are discussed below.