New Project Delivery Systems Require New Products With Engineers Liability Insurance

In the 21st century, the construction industry will increasingly shift from the traditional design-bid-build delivery of projects, in which separate entities are hired for the design and construction phase, to design-build, in which a single entity is responsible for both aspects of the project. While this new delivery system may save the owner on overall project costs, it presents new risks for the contractor-engineer firm since they now are subject to a higher standard of care than they were previously. This means that their exposure to lawsuits is greater and thus, there is a need for new specialized engineers liability insurance products to cover them against such risks.

This is a continuation of the trends seen in the 1990s, wherein many specialty coverage products emerged such as pollution professional liability policies as an increasing number of suits were filed against engineers due to their perceived roles in creating environmental hazards and pollution, and breach of intellectual property rights coverage, in case engineers inadvertently violated another party