Errors and Omissions insurance for Professional and Corporation
Errors and Omissions insurance for Professional and Corporation
(OP)
Hi everyone,
Please consider the following scenario in Ontario:
Engineer A currently has his/her own company and carry E&O insurance.
The company Engineer A used to work for has its own E&O and Engineer A was covered under that.
Now that Engineer A has his/her own company, is he/she still personally covered by his/her former's E&O insurance for the designs he/she did in the past with them? or does he/she need to purchase additional personal insurance on top of the current company E&O, to cover for prior acts with others?
Maybe another way to put this scenario is: what happens in terms of E&O liability when an engineer changes company?
Thanks a lot in advance
M.
Please consider the following scenario in Ontario:
Engineer A currently has his/her own company and carry E&O insurance.
The company Engineer A used to work for has its own E&O and Engineer A was covered under that.
Now that Engineer A has his/her own company, is he/she still personally covered by his/her former's E&O insurance for the designs he/she did in the past with them? or does he/she need to purchase additional personal insurance on top of the current company E&O, to cover for prior acts with others?
Maybe another way to put this scenario is: what happens in terms of E&O liability when an engineer changes company?
Thanks a lot in advance
M.





RE: Errors and Omissions insurance for Professional and Corporation
http://en.wikipedia.org/wiki/Professional_liabilit...
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RE: Errors and Omissions insurance for Professional and Corporation
David Simpson, PE
MuleShoe Engineering
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RE: Errors and Omissions insurance for Professional and Corporation
Best to you,
Goober Dave
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RE: Errors and Omissions insurance for Professional and Corporation
RE: Errors and Omissions insurance for Professional and Corporation
I was told my an insurance broker that the E&O for the engineer is covered by the company that buys the insurance, since there is a clause on the wording stating that the insurance covers any work done by an employee, current or former, as long as the company keeps continuity on the insurance.
Now, SteelPE's case may be different since the company no longer carries E&O insurance; I don't know what the answer would be in that case.
Cheers!
RE: Errors and Omissions insurance for Professional and Corporation
RE: Errors and Omissions insurance for Professional and Corporation
RE: Errors and Omissions insurance for Professional and Corporation
That assumes that your work isn't incompetent enough to get your license taken away in a C&D case by PEO though- that is a totally different matter of "professional liability". Based on reading the Blue Pages in Engineering Dementia, that bar too is set pretty low and rarely touches anyone who isn't a structural engineer. That should change in my opinion or the license really is nothing more than a fee to put some letters behind your name, but I digress...
Some bodies sell secondary liability insurance to groups of individuals to cover situations like this, i.e. otherwise uninsured liability arising from past employment. Here in Ontario, that coverage costs something like less than $50/yr per person when applied over a large group of engineers, so obviously it's covering an event that rarely happens- here at least.