×
INTELLIGENT WORK FORUMS
FOR ENGINEERING PROFESSIONALS

Log In

Come Join Us!

Are you an
Engineering professional?
Join Eng-Tips Forums!
  • Talk With Other Members
  • Be Notified Of Responses
    To Your Posts
  • Keyword Search
  • One-Click Access To Your
    Favorite Forums
  • Automated Signatures
    On Your Posts
  • Best Of All, It's Free!
  • Students Click Here

*Eng-Tips's functionality depends on members receiving e-mail. By joining you are opting in to receive e-mail.

Posting Guidelines

Promoting, selling, recruiting, coursework and thesis posting is forbidden.

Students Click Here

Jobs

Length of Professional Liability After Retirement

Length of Professional Liability After Retirement

Length of Professional Liability After Retirement

(OP)
I started my own business a couple of years ago and hadn't really put much thought into what happens when I decide I no longer want to work.

According the model statute of repose statute, we are not liable to defend ourselves for a project after the project is greater than 7 years old...simply put.

When I retire...which is a long, long ways away, what happens to me and my insurance? Do I need to carry insurance for another 7+ years even if I'm not practicing?

RE: Length of Professional Liability After Retirement

Yes, but not if you're dead. Talk to your insurance company.

Mike McCann
MMC Engineering

RE: Length of Professional Liability After Retirement

I don't think your assumption of 7 years is correct. That may be an accounting or IRS statute. Here in Canada, in one province it's 30 years after discovery of an error or omission. A company I once worked for mentioned to all their engineers that they would cover E&O for all engineering work we carried out under their banner even after we have left. Nice to see companies taking pride in their work and their internal processes.

VoD

RE: Length of Professional Liability After Retirement

This differs heavily by jurisdiction and insurance. Talk to your insurer and lawyer.

RE: Length of Professional Liability After Retirement

(OP)
http://www.acec.org/advocacy/committees/pdf/model_...

The above is what I'm basing my assumption of 7 years off of. I will talk with my insurance company today. This could be a very large expense after retirement that I hadn't contemplated prior to jumping off the business start-up cliff.

RE: Length of Professional Liability After Retirement

Could a lawyer discuss methods of shielding your assets?

RE: Length of Professional Liability After Retirement

I don't know about in the US, but in Canada you can get non-practicing/retirement professional insurance products specifically aimed to cover you for your professional liability once you're no longer actively working.

RE: Length of Professional Liability After Retirement

No one wants to pay insurance premiums for the rest of their life. In my case I had an attorney knowledgeable in finances prepare things. When first working for myself, I transferred everything except a computer and a truck to the wife. All contracts and invoices had this situation printed on the backs. Also, a statement was included saying that if there would be a claim against me, in accepting the contract or the work (even if no payment), they agreed not to attach wife's assets. All of this was made known up front, just in case. Even with insurance, that statement contract was used and the only claim I had never went to attaching wife's assets. Insurance covered all. Most of this asset split situation still is present, even though no work under my own name is being done at age 85. Of course the wife had better be one that won't run off with everything. If one is in a state with estate taxes that would affect total assets, trusts and other work in needed to minimize those taxes.

RE: Length of Professional Liability After Retirement

(OP)
oldestguy: that is pretty good advice and I have actually contemplated it. The language in my contracts states that an entity shall not pursue personal property, only property owned by said business. I guess I will need to have an attorney review it. I'm doing work for one right now so that might be an easy trade off :)

RE: Length of Professional Liability After Retirement

I believe it depends on the statute of repose in your particular region. In NC, it is 6 years after substantial project completion. I also believe in NC, they cannot touch any asset that is jointly owned as long as the wife did not participate in the business.

Red Flag This Post

Please let us know here why this post is inappropriate. Reasons such as off-topic, duplicates, flames, illegal, vulgar, or students posting their homework.

Red Flag Submitted

Thank you for helping keep Eng-Tips Forums free from inappropriate posts.
The Eng-Tips staff will check this out and take appropriate action.

Reply To This Thread

Posting in the Eng-Tips forums is a member-only feature.

Click Here to join Eng-Tips and talk with other members!


Resources