Engineering Insurance Minnesota

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Engineering Insurance Minnesota Policy Information

MN Engineering Insurance

Engineering Insurance Minnesota. Engineers use higher mathematics, economics, biological, and physical sciences to design airports, bridges, buildings, highways, products, and railroads. The engineer is hired by a client and may conduct research, prepare prototypes, or design specifications to meet the client's requirements. They may test process failures to identify problems and propose solutions. Engineers may specialize in chemical, civil, electrical, industrial, or mechanical design.

Related to engineers are the services offered by architects. Often engineering operations have architects on staff or other contractual associations with architectural companies.

If you own your own engineering business, then buying the right level of insurance for your business - including a BOP, or business owner's policy - is a crucial part of doing business. This type of policy protects your small business in many of the same ways that your homeowner's insurance protects your home. While the homeowner's policy protects your home and the stuff inside it, the BOP policy protects your business, your equipment, inventory, and more.

A engineering insurance Minnesota business owner's policy can provide you with protection if you find yourself on the receiving end of a lawsuit.

Engineering insurance Minnesota protects your firm from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.

What Is An Engineering Insurance Business Owner's Policy?

This engineering insurance Minnesota combines three basic coverage types into one policy, making it easy to choose the coverage level that your business needs and stay protected without a lot of research into specific policy types. The BOP policy can protect your professional engineering firm from the perils faced by all businesses and from perils unique to your trade. This policy offers your business:

  • Business liability insurance. This insurance provides a buffer against specific lawsuits that allege your business is responsible for bodily injury or property damage due to the operation of the business. For example, if a customer becomes injured at your place of work or if an employee on the client's jobsite becomes injured or damages the client's property, this insurance kicks in to cover the damages. It may also cover you from libel and slander charges in some instances. However, it does not cover any liabilities that arise directly from the professional engineer services that you offer.
  • Business property insurance. This type of insurance protects the business' physical location and the items stored or maintained within. For instance, your equipment, tools, and furnishings are protected under business property insurance, regardless of whether you own them or lease your equipment.
  • Business income insurance. Most engineering insurance Minnesota BOP policies come standard with a business income rider. This type of policy covers the loss of your business' income when you are unable to serve the clientele you normally serve due to claims of covered damage to your property.

Other Engineering Insurance Minnesota Coverages

A BOP policy for engineers is essentially a coverage bundle that meets the needs of any small business. However, your business may have unique needs that go beyond the norm. There are many, many types of riders and add-on or addendum policies that you can purchase to make sure you are protected from a 360-degree angle. Some of the most popular include:

  • Accounts receivable insurance coverage. As an engineer, there's a good chance that you work on projects that span several months or even go on for years. This type of receivables accounting can constitute a large number of your firm's assets. If those records are destroyed some way, whether by fire, water, or some other peril, you can be out a great deal of money to recoup them. This insurance provides a protective buffer against such an occurrence.
  • Coverage for computers and media. You likely rely on your firm's computer system and special software to stay in touch with your clientele, discuss specs, share goals, and exchange quality control information. If a virus makes its way into your media, causing a network crash and corruption of your data, then this type of coverage pays for the research required for replacing such data.
  • Valuable papers coverage for engineering businesses. The types of records your business creates and subsequently stores are sensitive. Site tests, minutes of meetings, change orders, and so forth, are all valuable to the operation of your business. Should water, fire, or additional perils damage these records, then you can file a claim under this type of engineering insurance Minnesota policy rider to recoup the research costs to recover the lost information.
  • Data breach coverage. Your business should also consider data breach coverage. The press has been very thorough in decrying the data breaches that businesses experience. Your business could suffer immensely if clients' confidential information is compromised. This type of coverage helps not only to save your reputation and restore client confidence, but it also helps to pay any damage claim resulting from data breaches.

These are some basic coverage types. Your engineer business may need even more specialized coverage. There are specific types of insurance that may be necessary based on the size of your firm. For example, worker's compensation insurance is sometimes required by the state when you have employees; this coverage protects your workers if they are injured or become ill due to a job-related cause. In addition, some businesses may need commercial auto insurance. If you use a vehicle in the course of running your engineering business, then a commercial auto policy can protect your assets if you are ever sued by someone who claims you injured them or caused damage to their property while operating a business vehicle.

Each business' insurance needs are unique. Discuss your particular situation with an agent who is adept at finding the right cover and level of protection for you - whether that's an engineering business owner's policy or some other type of comprehensive coverage.

MN Engineering Service's Risks & Exposures

Premises liability exposure is limited due to lack of public access at the office location. If clients visit the premises, they must be confined to designated areas. To prevent slips, trips, or falls, all areas accessible to the public must be free of obstacles with floor coverings in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure.

Parking lots and sidewalks need to be in good repair with snow and ice removed, generally level and free of exposure to slips and falls. Off-site exposures consist of visits to customers' premises and to job sites. There should be procedures in place for enforcement of rules regarding off-site conduct by employees.

Professional liability exposure is extensive due to the catastrophic potential for injury and death due to an error in design that results in structural or process failure, such as the collapse of an interstate or high rise. The exposure increases if the firm fails to conduct thorough background checks to verify employees' accreditations, education, and licensing, permit clerical workers to do tasks that only professionals should handle, or if error checking procedures are ignored or are inadequate.

All design specifications must be followed and inspections regularly conducted. Documentation must be clear, with changes marked and authorizations signed by both the engineer and the customer. Customers can suffer financial loss due to construction delays and cost overruns.

Workers compensation exposure is from office operations and off-site visits to customers' premises. Since work at the office is done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar repetitive motion injuries that can be reduced with ergonomically designed workstations. Off-site exposures may include working at construction sites, at heights, on rough terrain, or in isolated areas. Engineers can be injured off-site by slips and falls, falling objects, falls from heights, electrical panels, and wiring, construction machinery, flying debris, noise, and automobile or aviation accidents. Protective equipment may be required.

Property exposure is primarily that of an office, although there may be some incidental storage or an area for meetings. Ignition sources include electrical wiring, heating and air conditioning systems, wear, and overheating of equipment. The storage of customers' records may add to the fire load. Storage should be in fireproof file cabinets, and fire suppression systems must not damage the papers. Computers and other electronic equipment may be targets for theft.

Crime exposures are from employee dishonesty. Ordering, billing and disbursement duties must be separated and regular audits performed. Employee dishonesty issues may arise when an employee is on a client's premises. Background checks should be conducted before permitting any employee to visit clients.

Inland marine exposure consists of accounts receivable if the firm offers credit, computers, and valuable papers and records for clients' information, product proposals, prototypes, final specifications, and work in progress. The computers generally have expensive hardware and software designed specifically for engineering applications. Power failure and power surges are potentially severe hazards.

Computer systems must have adequate security features to prevent unauthorized access due to industrial espionage or by hackers. Duplicates must be made often and stored off site. Storage on premises should consist of fireproof cabinets. There may be an off-premises exposure if engineers take tools and equipment to customers' job sites.

Automobile exposure is from the vehicles used to travel to visit customers and to job sites. Generally, the vehicles are private passenger types or pickups. If vehicles are supplied to employees, there should be written guidelines regarding the personal and permitted use of the vehicle. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location.

Engineering Business Specialties

Chemical engineers use chemistry and chemical reactions to design machinery or industrial plants that manufacture chemically-based products. They may work in newer fields such as nanotechnology, or invent new processes. The engineer is hired by a client and may conduct research, prepare prototypes, or design specifications to meet the client's requirements. They may test process failures to identify problems and propose solutions.

In chemical engineering, errors and omissions exposure is extensive due to the catastrophic potential for injury and death due to an error in design that results in the release of pollutants, toxins, or known carcinogens into the air, water or land around the customers' premises.

All design specifications must be followed and inspections regularly conducted. Documentation must be clear, with changes marked and authorizations signed by both the engineer and the customer. Customers can suffer financial loss due to construction delays and cost overruns.

Civil engineers use higher mathematics, economics, biological, and physical sciences to design airports, bridges, buildings, highways, manufacturing plants, and railroads. They may specialize in construction, environmental, forensic, geotechnical, hydraulic, municipal, or transportation fields. The engineer is hired by a client and may conduct research, prepare prototypes, or design specifications to meet the client's requirements. They may test structural failures to identify problems and propose solutions.

In civil engineering, professional liability exposures are large due to the big potential for injury and death due to design flaws that result in structural failures. Imagine a bridge collapsing with cars on it.

All design specifications must be followed and inspections regularly conducted. Documentation must be clear, with changes marked and authorizations signed by both the engineer and the customer. Customers can suffer financial loss due to construction delays and cost overruns.

Minnesota Economic Data And Business Insurance Regulations

Made In Minnesota

If you're an entrepreneur who is thinking about starting a business or expanding your company by opening a division in a new location, you know that there are a number of factors you have to consider. One of the most crucial elements business owners must take into consideration is the conditions of the location they are interested in; the area needs to offer conditions that are favorable for the business in order for the operation to thrive. A suitable target demographic and a healthy labor market are just some of the elements that indicate whether or not a business will thrive.

For business owners who have Minnesota in mind as their base, below, we've highlighted key details that suggest whether or not the Land of 10,000 Lakes offers favorable conditions for business owners. We also discuss the forms of commercial insurance that businesses are required to carry in the state.

Economic Trends For Business Owners in Minnesota

The unemployment rate of a state is a good indication of whether or not a state is suitable for business operations, as it provides insight into the labor market. According to the Bureau of Labor Statistics, as of May 2019, the rate of unemployment in The Gopher State was 3.3 percent, while the national average was 3.6 percent. While there has been a slight increase from 2018 (0.5 percent from June 2018 to May of 2019), the rate still indicates that the labor market in the state is favorable, which is a good sign for entrepreneurs.

Anywhere throughout the North State offers suitable conditions for businesses; however, there are some areas that are particularly ideal. These areas either large cities or areas that surround the state's largest cities, including:

  • Alexandria
  • Eden Prairie
  • Edina
  • Golden Valley
  • Little Canada
  • Mendota Heights
  • Minneapolis
  • Minnetonka
  • Roseville
  • St. Paul
  • Thief River Falls

Certain industries do better than others in MN, and businesses that are centered on these industries have a greater chance of achieving success. The leading industries within the state include:

  • Agriculture and forestry
  • Bioscience
  • Hospitality and tourism
  • Information technology
  • Manufacturing
  • Sustainable energy (specifically wind power)
  • Transportation
Commercial Insurance Regulations For Businesses In Minnesota

The Minnesota Department of Commerce regulates insurance in Minnesota. Commercial insurance is designed to provide business owners and the individuals they associate with (employees, customers, and vendors) from a multitude of risks. To ensure proper protection for all, companies are required to carry the following commercial insurance policies in The North Star State:

  • Workers' compensation insurance, which provides coverage for work-related injuries and illnesses that employees may sustain.

Business that use vehicles for business-related purposes over a certain weight, must also carry commercial auto insurance, and any company that sells or otherwise distributes alcohol must carry liquor liability coverage.

Additional Resources For Professional Services Insurance

Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.


Professional Services Insurance

Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.

Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.

In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.

Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.

Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.

Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


Request a free Engineering Insurance Minnesota quote in Albert Lea, Alexandria, Andover, Anoka, Apple Valley, Arden Hills, Austin, Bemidji, Big Lake city, Blaine, Bloomington, Brainerd, Brooklyn Center, Brooklyn Park, Buffalo, Burnsville, Champlin, Chanhassen, Chaska, Cloquet, Columbia Heights, Coon Rapids, Cottage Grove, Crystal, Duluth, Eagan, East Bethel, Eden Prairie, Edina, Elk River, Fairmont, Faribault, Farmington, Fergus Falls, Forest Lake, Fridley, Golden Valley, Grand Rapids, Ham Lake, Hastings, Hermantown, Hibbing, Hopkins, Hugo, Hutchinson, Inver Grove Heights, Lakeville, Lino Lakes, Little Canada, Mankato, Maple Grove, Maplewood, Marshall, Mendota Heights, Minneapolis, Minnetonka, Monticello, Moorhead, Mound, Mounds View, New Brighton, New Hope, New Ulm, North Branch, North Mankato, North St. Paul, Northfield, Oakdale, Otsego, Owatonna, Plymouth, Prior Lake, Ramsey, Red Wing, Richfield, Robbinsdale, Rochester, Rogers, Rosemount, Roseville, Sartell, Sauk Rapids, Savage, Shakopee, Shoreview, South St. Paul, St. Cloud, St. Louis Park, St. Michael, St. Paul, St. Peter, Stillwater, Vadnais Heights, Waconia, West St. Paul, White Bear Lake, Willmar, Winona, Woodbury, Worthington and all other cities in MN - The North Star State.

Also learn about Minnesota small business insurance requirements for general liability, business property, commercial auto & workers compensation including MN business insurance costs. Call us (612) 808-9866.

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