Engineering work is deeply rewarding, but also fraught with certain risks. Liability risks are always on the minds of engineers, along with the ever-present risk of injuries. We offer all the policies that engineers need to protect themselves, like Professional Indemnity, Public liability, Work injury, Foreign Worker Medical, and Commercial Property Insurance.Â
Get your engineering insurance today with Provide.
Coverage | Explanation | Importance |
Protects you against lawsuits for professional advice you provide | Legally required | |
Protects your employees if they suffer work-related injuries/sickness. | Legally required for manual workers, or workers who earn <$2,600/month  Critical for all other workers | |
Protects you against liability to third-parties for property damage or injuries. Â Frequently required as part of engineering contracts, and to work in areas like shipyards, Oil & Gas sites, and offshore sites. | Critical | |
Protects your commercial property against major risks, e.g. fire, explosions, certain types of water damage, etc. | Critical if you rent/own a commercial property. | |
Protects your business if your foreign workers require medical treatment. | Legally required for all S-Pass and Work Permit holders | |
Some clients may require you to carry Performance Bonds, as part of your contract. These bonds ensure that the contractor performs satisfactory work | Required for certain projects | |
Protects your company directors and officers against personal lawsuits | Good to have |
Professional Indemnity cover: Engineering companies should always carry Professional Indemnity Insurance (also sometimes known as Professional Liability Insurance). This is critical, since the engineering work that you do (e.g. calculations, schemas, plans) and advice you provide will often have significant impact on other people’s property or safety. For instance, the Nicoll Highway collapse was the the result of negligent construction practices. If your advice or work turns out to contain errors, you can be sued by clients (or other parties) for providing incorrect advice. These lawsuits can be become particularly costly if your work results in property damage or injuries to your clients.
Work Injury Compensation cover: Engineering companies may do a fair amount of manual work, or at least be required to send their workers to visit sites that have certain inherent risks (e.g. factories, Oil & Gas plants, etc.) It’s vital that companies protect their workers against work-related injuries. Under WICA laws, you must compensate employees for work-related injuries/sicknesses, so this type of cover is important to protect your company and your workers.
Public Liability cover: This cover protects you against liability for property damage and injuries. For instance, engineers might damage other people’s property while performing repair works. Engineers may also accidentally injure others while performing servicing or installation works. This type of cover helps to protect you if you get sued for causing damage or injuries to third-parties.
Commercial Property Insurance: If you rent or own a property for your business, make sure you protect it against fire and other major risks.Â
Foreign Worker Medical Insurance: If you hire foreigners, you must carry foreign worker medical insurance. This covers hospitalisation & surgery costs for foreigners, since employers are responsible for meeting their foreign employees’ medical costs.
Performance Bonds: These are sometimes required by the client, or your main contractor, as part of contractual requirements. These bonds ensure that satisfactory work is performed for the project owner.Â
Directors and Officers Liability Insurance:Â Directors of engineering companies may sometimes get sued personally. This type of cover protects company directors from such liabilities.
This is a common question that clients will pose to us. Public liability insurance covers liability from property damage and injuries. For example, if you happen to be doing work at a client site and accidentally damage their property, Public Liability would cover you. Professional indemnity covers liability from the advice, plans, calculations, or other professional work you provide. For instance, if mistakes in your advice resulted in a piece of equipment failing, or a building being built incorrectly, Professional Indemnity would cover you.
Professional Indemnity Insurance:Â Most engineers will carry, at the bare minimum, $500,000 to $1 million in coverage.
Public Liability Insurance:Â Most engineers will carry, at the bare minimum, $500,000 to $1 million in coverage. If your revenue is high (e.g. $5 to $10 million, or above), consider coverage of at least $2 million and above.
Commercial Property Insurance: Minimum coverage amounts are $100,000 for basic offices. This can go up to $5 million (or more) for larger commercial spaces. You should calculate the amount of business equipment, and renovations and fixtures that you have, to arrive at an appropriate coverage amount for your commercial property.
Foreign Worker Medical Insurance: You must have a minimum of $15,000 cover per foreign worker.
Directors and Officers Liability Insurance: Consider $500,000 as a minimum coverage amount.
Claim Example 1: Engineering worker injured during welding
An engineering technician was welding a piece of machinery in a factory. The technician was accidentally burned during his weld. He was hospitalised for 5 days, and was released with a medical bill of $9,000. The technician was also owed about $700 worth of salary while he was on MC. The engineering company was legally liable to pay this medical bill and his lost wages while on MC, under WICA legislation. The employer had an active Work Injury Compensation Insurance policy, so the insurance company settled the medical bill.Â
Claim Example 2: Engineering company sued $2.4 million for calculation errors
An engineering company was hired to assist with the construction of a new commercial building. The engineering firm made several mistakes in their calculations. This resulted in part of the structure collapsing halfway through construction. The collapse injured multiple construction workers, destroyed some cranes at the site, and caused significant construction delays. The main contractor sued the engineering firm, claiming damages for negligence, damages for personal injury and property damage, and damages for increased construction costs. Luckily, the engineering company had Professional Indemnity Insurance with a high coverage limit. This covered liability from the negligence in their engineering work. The insurance company settled the claim for $2.4 million.
Claim Example 3: Engineering worker damages client machinery
An engineering company deployed several workers to install new equipment at a factory. The workers used a hoist to manoeuvre the equipment. While using the hoist, the workers accidentally damaged other equipment that was nearby. The damage was later evaluated to be around $12,000. The client demanded compensation from the engineering company. The engineering firm had a Public Liability Insurance policy, so the insurer paid the $12,000 claim for property damage.
With Provide, you can save up to 25% on your engineering insurance premiums. We offer a broad range of insurance that engineers need. Coverage is comprehensive, while premiums are kept affordable.
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Coverage |
Premium |
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From $90/month |
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From $5/month, per worker |
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From $19/month |
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From $9/month |
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From $6/month, per worker |
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Contact us for quotes |
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From $49/month |
