Company Shutting Down - Insurance question
Company Shutting Down - Insurance question
(OP)
I'm really having a hard time figuring out who to talk to about questions regarding liability insurance. Should I be talking with a lawyer, my provincial association, Engineer's Canada? I currently work for a consulting engineering firm in Canada, and the company is closing down at the end of the year. Now I'm wondering if I need to get my own liability insurance. I'm currently covered under the company's insurance, but once they are out of business what happens? I'm not sure if they will have tailing insurance (is this legally required by them?), but even if they do, I've heard that it only covers for a period of 7 years maximum. So what happens after that 7 years or if they don't ever get the tailing insurance? Could I potentially be sued personally?
RE: Company Shutting Down - Insurance question
RE: Company Shutting Down - Insurance question
RE: Company Shutting Down - Insurance question
RE: Company Shutting Down - Insurance question
So if you were, then you'd need a legal opinion to see if it's transferable. If the company indemnified you but the company no longer exists, does the indemnification hold? And then, even if it holds, will they (or can they) willingly honor it? If they don't, you'd have to shell out the cash to not only defend yourself in the initial suit, but also to sue whomever is supposedly indemnifying you to force them to comply. And then if they're broke anyway, you may be up a creek. Definitely talk to a lawyer...
RE: Company Shutting Down - Insurance question
RE: Company Shutting Down - Insurance question
yes I have
this was also true
RE: Company Shutting Down - Insurance question
RE: Company Shutting Down - Insurance question
RE: Company Shutting Down - Insurance question
RE: Company Shutting Down - Insurance question
and yes, the previous company was out of business
RE: Company Shutting Down - Insurance question
@CANeng11: in the US having Professional Liability coverage at the time of the incident and continuous coverage until the time of the claim is a whole thing. Meaning that even if you get insurance it may not be any good. I think the min cost is something like $3k/yr for an individual for Prof Liability
RE: Company Shutting Down - Insurance question
I went through something similar while I was writing for a trade journal part time. I wrote an article highlighting how some small errors made by a company became big problems. They came after the journal and myself for basically hurting their reputation. They lost because it was all true but I was never personally at risk.
RE: Company Shutting Down - Insurance question
Most good and reputable employers will protect their employees. In the case of insufficent funds (which can happen in a small company with inadequate insurance) or in a company that has closed (and, again, lacks adequate coverage), you can be in trouble.
RE: Company Shutting Down - Insurance question
Doctors are personally liable, at least, in California; that means that LLCs cannot protect doctors from being sued personally.
TTFN (ta ta for now)
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RE: Company Shutting Down - Insurance question
EDIT: The OP does not identify themself to be a PE.
RE: Company Shutting Down - Insurance question