Subcontractor Professional Liability

[vato]

I'm working as a subcontractor for a PE. I am also licensed but will not be stamping anything.
Their insurance company is requiring me to have Prof Liability insurance.
I have always assumed that when I stamp it, I own it, mistakes and all.
So, what could I be sued for and by whom when someone else stamps my work?

 

[zdas04]

There is no predicting what insurance people will require. It doesn't always seem rational. One client of mine had some bizarre requirements and I asked why and was told that if you have this insurance you have a better chance of still being around when the project is commissioned. I didn't completely understand, but got the insurance they were requiring. I find it best to go along with reasonable requests--that makes fighting unreasonable ones a bit easier.

David Simpson, PE
MuleShoe Engineering

Law is the common force organized to act as an obstacle of injustice Frédéric Bastiat

 

[Ron]

vato...I agree with zdas04...

Further, you should make sure that your contract with the PE is clear and limits your liability and your scope of work/responsibility. The reason their insurance company wants you to be insured is to allow something called subrogation. This means that if the PE gets sued and you were involved in the work, even though he is responsible from a licensing standpoint, his insurance company can sue you as a third party just to spread the love. They want to recover as much money from their coverage of the PE as they can get....and you are probably the only other target. Welcome to engineering.

Another point....you would be a subconsultant, not a subcontractor. Those have different meanings. Check it out.

 

[vato]

Thanks guys,
That brings up another question. Should I use the same insurance carrier as the PE which I am subconsulting for?

 

[Ron]

vato....that makes no difference. I've been involved in forensic cases where two different professionals covered by the same company were suing each other. Move money from one pocket to another. Actually a great position for the insurer....except when both insured parties get sued by someone else!

 

[brandonbw]

Shop around for insurance,. Not sure if you can still do this, but USAA let civilians sign up for personal checking and savings accounts. I was able to get a discount through them for our insurance. We went through Hartford for the quote.

B+W Engineering and Design
Los Angeles Civil Engineer and Structural Engineer

http://bwengr.com

 

[zelgar]

One thing you might indicate is that if you need to get your own individual insurance, your rate for the job should also increase.