Do I need personal liability insurance? 1

[CANeng11]

I'm an engineer for a very small structural residential engineering firm. The owner of the company is planning on retiring and closing the company in a year or so. I'm wondering what happens liability wise once the company is closed? Will he need to carry insurance after shutting down the company? Do I need to get personal liability insurance to protect myself? I'm in Alberta Canada.

 

[msquared48]

In the states, we need to carry the insurance for a time after the company is closed - around 6 to 7 years I believe last time I checked, which was not recently.

Might want to check with a provider in your area dealing in errors and omissions insurance.

Mike McCann, PE, SE (WA, HI)

 

[glass99]

Typically when you close a firm you get tailing insurance for some number of years depending on the statute repose laws in your state. But if you didn't stamp anything, and it was the firms name on the drawings, your risk should be very low.

 

[CANeng11]

No I am stamping for the firm.

 

[IRstuff]

Don't you currently have insurance, or is that bought by the company? If the company is gone, you, as the EoR, needs the insurance.

TTFN (ta ta for now)
I can do absolutely anything. I'm an expert!

https://www.youtube.com/watch?v=BKorP55Aqvg

faq731-376 forum1529 Entire Forum list

http://www.eng-tips.com/forumlist.cfm

 

[CANeng11]

The current insurance is bought by the company.

 

[glass99]

One of the forensics guys said on another thread that he has seen projects go to court where the firm was out of business and the individuals were not pursued.

If you were to get your own insurance I think its in the range of $3k/yr

 

[Ron]

Get the company to buy tail coverage. Keep your personal stuff out of it but make sure the company indemnifies you for liability. Some states allow the engineer to be sued separately from the company. For that, you need personal coverage.


A Great Place For Engineers to Help Engineers

Follow me there.....