When Precision Meets Protection: Tailored Insurance Solutions for Engineers

Engineers drive innovation and shape the built world, translating complex ideas into essential systems and structures. Even the most detail-oriented engineer can encounter project setbacks, miscalculations, or communication gaps that result in costly claims. That’s why Professional Indemnity insurance (PI) is important.

At Rollo Insurance, we specialize in helping engineers safeguard their work and reputation. We know the technicality of your profession and the high standards you are held to. Our team is here to ensure you’re protected with tailored PI coverage that addresses your specific exposures so you can focus on building the future with confidence.

What Are the Unique Risks Faced by Engineers?

PI is also known as Errors & Omissions. The work of engineers carries inherent risks that make Professional Indemnity insurance a necessary safeguard:

• Design Flaws: Errors or omissions in designs can lead to structural failures, system malfunctions, or safety hazards, resulting in costly rework, delays, and potential lawsuits.
• Calculation Errors: Mistakes in complex calculations can have significant consequences for project safety and functionality.
• Specification Errors: Incorrect or unclear specifications can lead to improper construction or manufacturing, resulting in financial losses for clients.
• Project Management Negligence: Delays, budget overruns, or inadequate supervision can lead to claims of professional negligence.
• Providing Incorrect Advice: Flawed advice or recommendations can result in financial losses or safety issues for clients.
• Failure to Meet Professional Standards: Not adhering to industry best practices or regulatory requirements can lead to liability claims.
• Breach of Contract (related to professional services): Allegations of failing to meet the agreed-upon professional standards or deliverables in a contract.

What Does Professional Indemnity Insurance Cover for Engineers?

Professional Indemnity insurance for engineers is specifically designed to protect against the financial consequences of claims arising from their professional services. This typically includes coverage for:

• Legal Defense Costs: Even if an allegation of negligence is unfounded, defending against a lawsuit can be incredibly expensive. PI insurance covers the costs of lawyers, court fees, and other legal expenses.
• Settlements and Judgments: If an engineer is found liable for professional negligence, the policy can cover the financial settlements or court-ordered judgments, up to the policy’s limit.
• Compensation for Financial Loss: PI insurance can help cover the financial losses suffered by a client as a direct result of an engineer’s error or omission.
• Civil Liability: Protection against civil lawsuits related to professional breaches of duty.

Why is Professional Indemnity Insurance Essential for Engineers?

• Protection of Personal Assets: Without PI insurance, an engineer’s personal assets could be at risk if they are sued for professional negligence.
• Meeting Client Requirements: Many clients, especially government agencies and large corporations, require engineers to maintain a certain level of PI insurance as a condition of their contracts.
• Maintaining Professional Reputation: Legal battles can damage an engineer’s reputation. PI insurance helps manage the legal process and can mitigate the reputational impact.
• Peace of Mind: Knowing you have PI coverage allows you to focus on your work with greater confidence, without constant worry about potential liability claims.

What are Factors Affecting Professional Indemnity Insurance Premiums for Engineers?

Several factors influence the cost of PI insurance for engineers:

• Type of Engineering Specialization: Certain engineering disciplines (e.g., structural, environmental) may be seen as higher risk than others.
• Size of the Engineering Firm: Larger firms with more employees and projects generally face higher premiums.
• Scope of Services Offered: A broader range of services can increase the potential for claims.
• Project Size and Complexity: Engineers working on larger and more complex projects may have higher premiums.
• Claims History: A history of prior PI claims will likely lead to higher premiums.
• Coverage Limits and Deductible: Higher coverage limits and lower deductibles will increase premiums.
• Risk Management Practices: Implementing strong quality control and risk management procedures can sometimes lead to more favorable premiums.

Is Professional Indemnity the Same as General Liability Insurance for Engineers?

No, Professional Indemnity (PI) insurance and Commercial General Liability (CGL) insurance are not the same. They are different types of coverages that address different types of risks:

• Professional Indemnity (PI): Covers claims arising from errors, omissions, or negligence in the professional services provided by the engineer. It focuses on financial losses suffered by clients due to the engineer’s advice, design, or other professional actions.
• Commercial General Liability (CGL): Covers claims of bodily injury or property damage to third parties caused by the engineer’s business operations. This might include a visitor tripping and falling at the engineering firm’s office or damage caused by an employee during a site visit (unrelated to the engineering design itself).

Engineers typically need both PI and CGL insurance to have comprehensive protection.

Rollo Insurance: Your Insurance Engineers 

At Rollo Insurance, we know engineers don’t just design systems. They help build the backbone of America. Your knowledge and precision are what keep communities running and progress moving forward. That’s why PI is more than a policy. It’s a safeguard for your career, your firm, and your future.

Whether you’re designing infrastructure, overseeing construction, or consulting on complex systems, Rollo is here to help protect what you’ve built. We take pride in forming lasting partnerships with engineers across the country and offering tailored coverage that fits your field and your goals. Let’s build something stronger together. Connect with Rollo Insurance today for a personalized consultation and coverage that supports your practice and the nation you help shape.