insurance question and other advice welcome 1

[sam74]

So I'm laid off and managed to find a job to get a paycheck. Construction work is extremely slow in Tennessee. I'm in orientation for Green Mountain Coffee Roasters as an entry level machine operator.

From what I understand they plan on doing a parking lot expansion in the near future. I don't know how large but it could possibly require a Civil Engineers stamped site layout, grading and drainage plan, drainage calculations, erosion control plans, and a SWPPP.

We are taking a tour of the plant tomorrow and I'll plan on inquiring about that information.

If they are doing a large enough expansion I'm going to let them know that they have a licensed CE on staff just not in that capacity. I believe their engineering staff is all industrial.

If I could work into this would I need to be a contracted CE and carry liability insurance or do you think I could do this as an employ of that company covered by their insurance and maybe get a pay raise out of it?

 

[Ron]

Do it under the company's insurance. A "one-off" project is not worth the cost of insurance.

 

[sam74]

thanks for the reply and past replies Ron. Hope it turns into something.

 

[Ron]

Good luck, Sam.

 

[beej67]

"Do it under the company's insurance."


If the company just carries General Liability and not E&O, can he do it under their policy, or would the company have to take out an E&O policy for that project?

Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East -

http://www.campbellcivil.com

 

[Ron]

A company generally would not need E&O insurance to self-perform a design. After all, if the design were deficient, you couldn't sue yourself.

My point was to clearly establish Sam74 as an employee of the company and not to distance himself by establishing the illusion of a separate entity, for which he would be solely liable. If he works for the company he should enjoy the same liability indemnity as other employees. If that is not the case, then he should ask for a specific indemnity of his engineering functions.

 

[beej67]

"After all, if the design were deficient, you couldn't sue yourself."

What if a design failure causes damage to someone outside the company? Wouldn't they technically have to go after the engineer?

I as an engineering consultant can't funnel liability for a design failure to my LLC's general liability policy, and then indemnify myself from liability as an employee of my firm. (right?) Why would his situation be any different?



Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East -

http://www.campbellcivil.com

 

[Ron]

Engineers can almost always be sued separately from the company. A company that is not engaged in engineering work as their primary business, cannot likely get E&O insurance for design work. If the design is faulty, there are two streams of liability. The first is to the company that engaged the services. In this case it is the company that also employs the engineer. Back to the original premise...you can't sue yourself. The second stream is consequential damage. If a company has a parking lot that was designed by an engineer and the parking lot ponds water because of a design error and someone has an auto accident as a result of the ponding, then that is a consequential damage, which would more likely be covered under a general liability policy of the company. The insurance company could then subrogate against the engineer (personally) or the damaged party could sue him directly, but if the company indemnifies him, it still goes back to the company.

The key here is to get the company to individually indemnify the engineer for negligence, errors, and omissions.

 

[sam74]

Thanks for the input, banter, and explanations fellows.

I'll find out the issues Monday when I start the real work. I didn't see the point in asking HR folks.

The good thing is I have three irons in the fire with engineering related work hear locally. Taking a civil service test for a city stormwater tech job tomorrow. Had a phone interview earlier today for a field engineering position locally with a world-wide established company. Job fair after that with another local company hiring a civil.

Get a dang job in the real world and everbody wants to look at you. That coffee place has some great benefits but the pay sucks. I might end up liking it better there.

 

[beej67]

Great post Ron. Thanks.

Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East -

http://www.campbellcivil.com

 

[Ron]

beej67...thanks. I like your company logo.