The Built Environment is a term not much heard outside of specialized engineering circles. In general, the term refers to the man-made environment that we live and work in, including cities and their supporting infrastructure such as water supply pipelines and energy transmission networks. Unfortunately, these man-made structures are vulnerable to the mistakes made during their construction by the engineers who built them, which could result in serious consequences such as the buildings suddenly developing cracks or, in the worst case, totally collapsing. This is why engineers who have designed the Built Environment need to buy professional liability engineers insurance policies.
Professional liability engineers insurance protects engineers against the risk of being sued by ensuring that they can afford to pay the high legal costs of defending themselves as well as paying damages in case there is a verdict against them. Being covered by this type of insurance policy also makes your firm seem more professional. This type of coverage protects you in case you are sued because of mistakes or acts of omission or negligence in the projects you have worked on.
Professional liability insurance is also known as errors and omissions insurance and is designed for engineers and draftsmen. The policy pays for, up to the limit of the coverage, the cost of the legal defense of the design consultant as well as monetary damages awarded to the claimant if it is determined in court that the engineer was not performing his work up to the prevailing standard of care. While the policy lasts for a year and is renewable annually, if the engineer or draftsman has maintained their policy with the carrier, they will be covered for new lawsuits brought against old projects, provided they were completed since the original inception date of the policy. However, if the policy was allowed to lapse before being renewed again, there may be coverage gaps.
E&O insurance policies are typically issued in increments of $1 million (representing the maximum payoff if a claim is made against the policy), and deductibles are levied on a per-claim basis. While deductibles begin at $1,000, higher deductibles can save you money on monthly premiums, if you can afford to cover them if ever you