Tips for Architects and Engineers Errors & Omissions Claims
As most any engineer knows, the work that you do as a design professional will often come under heavy scrutiny. Any flaw or error can be costly, because your work can ultimately affect the lives of those who inhabit the buildings you design. And it only takes one miscalculation or mistake to cause a costly delay or even worse injuries or property damage.
The most common cause of architects and engineers errors and omissions (E&O) claims have been found to be a lack of documentation of communications with contractors and project owners. This often leads to errors; particularly in cases where material changes are made to final designs and it goes unchecked. The potential for you to get sued over mistakes will often lead to hefty legal and other expenses, which can multiply exponentially.
The importance of professional liability insurance
Professional liability insurance protects your business if a client should make a claim that you’re responsible for mistakes that result in their financial loss. For example, if a project is completed based on your specifications, but at some point down the road your design is deemed faulty or hazardous, your client will likely allege that an error you made in providing your professional services was the cause for the problem. Or, let’s say, you were unaware of current local codes and your construction project fails to meet city or state regulations, you could be held liable for any work that is required to correct any issues.
Without proper coverage, your legal defense, the time you spend in court, and any other court -related expenses would be yours to pay out-of-pocket. If you’re legally obligated to compensate your client for any loss or other damages, having architects and engineers errors and omissions insurance will pay these expenses, in accordance with the provisions in your policy.