What's my liability?
What's my liability?
(OP)
Hi my fellow engineers,
I have a question about professional liability and would like to seek your valuable opinions.
I am a PE and have been working for a small engineering services firm for a long time. The owner of the firm has been sealing/stamping design drawings for every project and I have never done it. However, technically I have been taking care of the daily operations for the owner. Now here is my question. The owner may close his firm and business for good. If this happens, I assume the professional liability coverage will be terminated as well. After the firm is closed and the owner doesn't exist (say passing away), what's my liability for those projects I have worked on even though the drawings didn't have my PE seals?
Thanks
I have a question about professional liability and would like to seek your valuable opinions.
I am a PE and have been working for a small engineering services firm for a long time. The owner of the firm has been sealing/stamping design drawings for every project and I have never done it. However, technically I have been taking care of the daily operations for the owner. Now here is my question. The owner may close his firm and business for good. If this happens, I assume the professional liability coverage will be terminated as well. After the firm is closed and the owner doesn't exist (say passing away), what's my liability for those projects I have worked on even though the drawings didn't have my PE seals?
Thanks





RE: What's my liability?
You are likely OK since you did not have engineering responsibility for the projects. Also, the target of opposing attorneys is insurance coverage, not engineers. The PE who signed/sealed stuff has exposure, but his liability policy will likely cover his liability. In general, if the firm carries professional liability insurance, it is presumed to cover all professional employees and those who assist them....after all, the premiums are based on gross revenue and it is the whole team that produces that revenue, so they would have a hard time convincing a judge that coverage for various employees did not exist. Essentially, the firm indemnifies its employees for negligence.
Given all that, the "horse is out of the barn". If you have liability (not likely), there is nothing you can do at this point other than strip yourself of assets. You cannot get retro-active professional liability insurance if you've never been directly covered by a policy before.
RE: What's my liability?
My concern for potential liabilities is after the firm is closed for business, when the firm and the owner are not available.
RE: What's my liability?
Unless you, as an individual, have been grossly negligent and have significant wealth, I would not worry about it.
I sounds like your name is not on any contracts or as the Responsible Engineer.
RE: What's my liability?
Usually when you stop payment on your insurance your coverage ends. I have found the proper way to remain protected is to pick up a tail policy on your insurance, which isn't cheap (I went trough this a few years ago with a former employer who went out of business for financial reasons)
Now I gues the question is, if you boss is retiring, why are you not taking the business over? Where will your current clients go?
RE: What's my liability?
RE: What's my liability?
RE: What's my liability?
RE: What's my liability?
RE: What's my liability?
RE: What's my liability?
RE: What's my liability?
Regarding tail coverage, if the owner closes the company it's likely he will stop having any coverage. He is very old and way past his retirement age, so the reality is he may be gone or physically/mentally disabled due to aging on any day.