Chemical Engineer Insurance Policy Information
Chemical Engineer Insurance. Chemical engineering is a complex and versatile profession, on which much of the modern world depends.
Chemical engineers use chemistry and chemical reactions to design machinery or industrial plants that manufacture products, including agricultural applications, batteries, cleansers, drugs, energy resources, foods, fuels, paints, and plastics.
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.
Careers in this field can typically be divided into two broad categories; while some chemical engineers (also often called process engineers) invent or adapt products and processes, others are engaged in the planning, manufacture, and running of plants and machines.
While there is no question that chemical engineers can find financially and intellectually rewarding careers as employees, some will thrive by running their own business - chemical engineers may, as business owners, run consultancy companies, work on product and process development, or become engaged in educating others, for example.
To ensure that your own business has the chance to grow and make a name for itself, however, it is essential to adequately protect yourself against unforeseen circumstances. What types of chemical engineer insurance coverage can help you shield your business from major threats? Find out more in this brief guide.
Chemical engineer insurance protects engineering services businesses from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked chemical engineering insurance questions:
- What Is Chemical Engineering Insurance?
- How Much Does Chemical Engineer Insurance Cost?
- Why Do Chemical Engineers Need Insurance?
- What Type Of Insurance Do Chemical Engineers Need?
- What Does Chemical Engineer Insurance Cover & Pay For?
What Is Chemical Engineering Insurance?
Chemical engineering insurance is a type of insurance coverage specifically designed to protect chemical engineers, chemical processing facilities, and chemical manufacturers. It covers risks such as property damage, product liability, environmental pollution, and professional liability.
This type of insurance protects against the potential harm or loss that may occur as a result of chemical processes, storage, and transportation of chemicals, and the manufacturing of chemical products. It helps companies minimize financial losses and maintain their reputation in the event of an accident or environmental mishap.
How Much Does Chemical Engineer Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small chemical engineering firms ranges from $37 to $59 per month based on location, services offered, revenue, claims history and more.
Why Do Chemical Engineers Need Insurance?
Private individuals require need various kinds of insurance coverage to shield them from the financial consequences of disastrous events they may face. Business insurance merely expands on this private coverage, as you will face a broader spectrum of risks.
Your commercial premises and other assets are vulnerable to a variety of risks - even if you strictly adhere to health and safety protocols. Your business premises may, for instance, be struck by an act of nature, such as a wildfire, earthquake, tornado, or serious flood.
Chemical engineers may fall victim to crimes like theft or vandalism. The vehicle you drive for professional purposes may be involved in an accident.
Chemical engineers also face liability risks, just like any other business would. A third party, such as a potential client or janitor, might sustain an injury on your premises. You may face costly and drawn-out litigation if someone accuses you of negligence or active harm, even if you did not make a mistake in your job.
Unless you have carefully evaluated your insurance needs, a chemical engineer running their own business could easily face devastating financial losses if they are affected by these perils, or others.
By investing in the right chemical engineer insurance, you shield your business from unexpected financial setbacks even if circumstances beyond your control do knock on your door.
What Type Of Insurance Do Chemical Engineers Need?
Just as chemical engineering is an extremely varied profession, chemical engineers who run their own companies will have vastly differing insurance needs.
Factors that include the nature of your activities, the value of the equipment you own, whether you have any employees and how many, and the size of your commercial venture all influence the kinds of coverage most suitable for you.
Because of this, it is essential to consult a skilled commercial insurance broker who is familiar with your field. Having said that, some of the core types of chemical engineer insurance include:
- Commercial Property: Any commercial venture with physical assets requires commercial property insurance, which protects you from financial losses associated with perils like theft, vandalism, and acts of nature. Even chemical engineers whose businesses are based at their home address will need this coverage for assets such as computers and equipment. Repair and replacement costs are both covered.
- General Liability: This type of coverage can be thought of as a crucial part of your legal defense fund. Should a third party sue you alleging that you caused bodily injury or property damage, it covers your attorney fees, settlement expenses, and related costs.
- Professional Liability: Also called errors and omissions insurance or indemnity insurance, this form of chemical engineer insurance coverage will protect you if a client claims that you were negligent in performing your duties, by taking care of a significant portion of the resulting expenses.
- Commercial Auto: Chemical engineers will almost certainly depend on vehicles, and your personal auto insurance does not cover professional use. In case of accident or damage, commercial auto insurance has your back.
It should be noted that there may have additional chemical engineer insurance needs, as well as that each individual policy will cover costs up to a predefined limit.
For the complete peace of mind that can only result from knowing that you have every eventuality covered, is is vital to talk to a commercial insurance broker about your individual risk profile.
Chemical Engineer's Risks & Exposures
Premises liability exposure is limited due to lack of public access at the engineer's location. If customers 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 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 the release of pollutants, toxins, or known carcinogens into the air, water or land around the customers' premises.
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.
Agreements with clients, including fee arrangements, should be in writing. Customers can suffer financial loss due to construction or testing delays and cost overruns. There may be allegations of breach of a client's confidentiality or conflict of interest,
Environmental impairment exposure can be high if there are testing laboratories due to the potential for air, ground, or water contamination from the use of chemicals during the testing process. Disposal of items tested and solvents or acids used in testing protocols must adhere to all federal and state guidelines.
Workers compensation exposure is from office operations and off-site visits to customers' premises and job sites. 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.
If there is a laboratory, employees may be exposed to back injuries from lifting, burns, contact dermatitis, cuts, foreign objects in the eye, hearing loss from noise, occupational disease, shocks from malfunctioning electrical equipment, and slips and falls. Employees should have appropriate safety gear when handling test samples and be aware of possible reactions and symptoms.
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, assaults by unruly clients, and automobile or aviation accidents. Protective equipment may be required.
Property exposure is primarily that of an office, although some may have laboratories used for testing applications. 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. Fire suppression systems must not damage the papers. The exposure increases if combustibles or flammables are being researched, tested, or used.
Computers and other electronic equipment may be targets for theft. There must be adequate security features to prevent unauthorized access due to industrial espionage.
If there is a testing laboratory, sterile conditions must be maintained. A small fire could cause a total loss if the smoke contaminates the work area, and re-sterilization must take place. If the laboratory uses animals for research purposes, there could be protesters or vandalism.
Business income could be affected during a lengthy downtime due to the lack of backup facilities.
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. 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.
Crime exposure is from employee dishonesty, which can be very high as chemical engineers possess unique access to customers' proprietary information such as product formulas. Potential for theft, particularly industrial espionage, is great. Background checks should be conducted on all employees.
Monitoring procedures and securing of all records should be enforced to prevent unauthorized access to client information. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements. Employee dishonesty issues may arise when an employee is on a client's premises.
Business auto exposure comes from the vehicles used to travel to visit customers and job sites. Generally, the vehicles are private passenger types or pickups. Engineers may use rental cars when proceedings are not local.
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.
What Does Chemical Engineer Insurance Cover & Pay For?
Chemical engineers can be sued for various reasons, often related to negligence, errors, and omissions in their professional work. Some of the common reasons include:
Design Flaws: Chemical engineers may be sued if their design of a chemical process or facility contains flaws that result in harm or damage. Professional Liability Insurance (also known as Errors & Omissions Insurance) can help cover legal expenses and settlement costs arising from such claims.
Environmental Damage: Chemical engineers might be held responsible for environmental damage or pollution caused by their work. Environmental Liability Insurance can help pay for the cleanup, restoration costs, and legal defense if a lawsuit is filed.
Workplace Accidents: If an employee is injured due to a chemical engineer's negligence in designing or maintaining a safe work environment, the engineer could be held liable. Workers' Compensation Insurance covers the medical expenses, lost wages, and legal fees resulting from such accidents.
Product Liability: Chemical engineers could be sued if a product they designed or developed causes harm or damage to the end-user. Product Liability Insurance can help cover the legal fees, settlement costs, and any required recall efforts.
Intellectual Property Disputes: Chemical engineers might face legal challenges related to patent infringement, copyright violations, or trade secret theft. Intellectual Property Insurance can help cover the legal fees and settlement costs associated with such disputes.
Breach of Contract: Chemical engineers may be sued for failing to fulfill their contractual obligations or deliverables. Professional Liability Insurance can help pay for legal defense and settlement costs in such cases.
Insurance policies tailored for chemical engineers help protect them from the financial risks associated with these and other potential lawsuits. By providing coverage for legal defense costs, settlements, and judgments, insurance can offer a financial safety net for engineers facing litigation.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8711 Engineering Services
- NAICS CODE: 541330 Engineering Services
- Suggested Workers Compensation Code(s): 8601 Architectural or Engineering Firm - Including Salespersons & Drivers
Description for 8711: Engineering Services
Division I: Services | Major Group 87: Engineering, Accounting, Research, Management, And Related Services | Industry Group 871: Engineering, Architectural, And Surveying
8711 Engineering Services: Establishments primarily engaged in providing professional engineering services. Establishments primarily providing and supervising their own engineering staff on temporary contract to other firms are included in this industry. Establishments providing engineering personnel, but not general supervision, are classified in Industry 7363. Establishments primarily engaged in providing architectural engineering services are classified in Industry 8712, and those providing photogrammetric engineering services are classified in Industry 8713.
- Designing ship, boat, and machine
- Engineering services: industrial, civil, electrical, mechanical
- Machine tool designers
- Marine engineering services
- Petroleum engineering services
Chemical Engineer Insurance - The Bottom Line
To protect your engineering business, employees and clients, having the right chemical engineer insurance coverage is vital. To discover what business insurance options are available to you, how much coverage you should invest in and the cost - speak to a reputable commercial insurance broker.
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.
- Answering Service
- Armored Car
- Attorney Lawyer
- Background Music Services
- Business Consulting
- Chemical Engineers
- Civil Engineers
- Claims Adjuster
- Commercial Laundries
- Commodity Broker
- Corporate Wellness
- Court Reporter
- Credit Bureaus
- Debt Collection Agency
- Detective Agency
- Diaper Services
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- Funeral Directors
- HR Consultant
- Inspection Bureaus
- Insurance Agents & Brokers Insurance
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Safety Consultants
- Speakers Bureaus
- Tax Preparer
- Temporary Staffing
- Title Abstractors
- Valet Parking
- Specialty Consultants
- Specialty Service Business
The professional services industry, which includes occupations such as lawyers, doctors, accountants, and architects, often deals with sensitive and complex issues that carry a high risk of liability. These professionals are expected to provide their clients with expert advice and guidance, and any mistakes or oversights can result in significant financial consequences for both the client and the professional. This is where insurance comes into play.
Business insurance provides protection against the financial repercussions of potential mistakes or accidents that may occur while providing professional services. For example, a lawyer may make an error in their legal representation that leads to a financial loss for their client. Without insurance, the lawyer would be personally responsible for covering the cost of this loss. Insurance helps to protect professionals from these types of financial burdens and allows them to focus on providing high-quality services to their clients.
In addition to protecting against financial losses, commercial insurance can also provide legal defense for professionals facing legal action as a result of their work. This can be especially important for professionals in high-stress or high-risk fields, such as doctors or architects, who may be at a higher risk of being sued for professional negligence.
Overall, the professional services industry needs insurance to protect against financial losses and legal action, ensuring that professionals can continue to provide high-quality services to their clients without the added stress and burden of potential financial consequences.
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.