Professional Liability Insurance
Professional Liability Insurance
(OP)
I am a mechanical P.Eng. I am just starting to work as a contractor for an engineering consultant company. My contract with the Company states that I am responsible for buying liability insurance. Could anybody tell me how much a typical annual premium for professional liability insurance and the best provider in Canada.
Is it reasonable as a contractor to ask the Company that I intent to work for to cover my liability insurance.
Thanks
Is it reasonable as a contractor to ask the Company that I intent to work for to cover my liability insurance.
Thanks





RE: Professional Liability Insurance
David
RE: Professional Liability Insurance
In Canada, I pay about $350 a year for general liability insurance (this is for breaking something, such as coffee on the computer, dropping your client's laptop, driving through his front door, you get the idea). Lots of companies offer this - State Farm for one.
For professional liability insurance (errors and omissions), well, the pickings is slimmer. Aon is one of 3 or 4 that I know of - can't rembmer the rest. I was quoted about $15,000 per year, depending on my gross. It's not cheap.
Is it reasonalbe to ask the company that you intend to work for to cover you? Well it depends. If they cover you, then Revenue Canada will look less favourably on you as an independent contractor, instead of an employee. Savy? Up to you to decide - are you a contractor or an employee?
"Do not worry about your problems with mathematics, I assure you mine are far greater."
Albert Einstein
Have you read FAQ731-376 to make the best use of Eng-Tips Forums?
RE: Professional Liability Insurance
The rates depend on the type of engineering work that you do. One major factor in price seemed to be "product design". Buildings and bridges didn't seem as "liability prone" in the insurance company's eyes as product design. I actually had a company reject me because I have done about 10% product design for individuals.
Yes, if you do work under contract, you are expected to have your own liability insurance.
RE: Professional Liability Insurance
RE: Professional Liability Insurance
I have a client I am helping through rezoning and if successful, I will do some structural, mechanical, electrical, and plumbing. Small project - hair salon in first floor of a duplex residential.
What scares me is the client. In checking him out, I found his current property was lost in a sherrif's sale but he somehow got it back through his sister - a co-owner. He owns several other similar properties - probably rentals, and he has had many civil cases - mostly evictions it seems, that he initiated.
I am thinking I need protection to ensure I get paid, filled out the EJCDC contract for the project and will spring it on my client once the property is rezoned, if it gets rezoned. The language in the contract limits my liability to the fee or $50,000 - whichever is greater. This got me thinking I need coverage for that $50,000 since my fee will be about $3000.
I am sure about project insurance but I think you can buy smaller policies like my need of $50,000. I should be hearing from some companies in the next couple of weeks and I will post what I learned.
Sorry to sort of ramble. Just throwing out some other options that may better serve your needs - depending on your circumstances.
Don Phillips
RE: Professional Liability Insurance
The liability limit in your contracts is excellent. I was referred to order the following book on Amazon - ("A Complete Guide to Consulting Success"-Howard Shenson) which I think has some sample contracts etc...
Dave Fenton
RE: Professional Liability Insurance
--Scott
http://wertel.eng.pro
RE: Professional Liability Insurance
David
RE: Professional Liability Insurance
What I did not tell her is sometimes, project insurance makes more sense. If you want to go bare on most of your smaller, verbal contract projects, and only insure the larger, contracted projects with higher risks, then the project coverage may be the way to go. I will bring that up when she gets back to me.
Don Phillips
http://worthingtonengineering.com
RE: Professional Liability Insurance
RE: Professional Liability Insurance
RE: Professional Liability Insurance
Don Phillips
http://worthingtonengineering.com
RE: Professional Liability Insurance
Also whichever company I can go with will try to sell my the general home/office trip/slip liability but I already have from my existing S Corp. I have set up. Just to let you know in case you have another business also so you don't get double coverage.
RE: Professional Liability Insurance
Where are you located? What is your experience in sprinkler design? I have been at it for about 17 years. What software to you use?
T
RE: Professional Liability Insurance
I'm located in South Florida. Not nearly as much sprinkler design as you but I do have a lot of boots in the dirt/building construction project management experience. I'm thinking of going with Hydratec. What do you use?
S//
TP
RE: Professional Liability Insurance
RE: Professional Liability Insurance