Civil Engineer Insurance Policy Information
Civil Engineer Insurance. Civil engineers have the exciting and rewarding job of designing, planning, and supervising the construction of a wide variety of construction projects - including, to name but a few examples, buildings, roads, bridges, parks, and harbors. A civil engineer will typically further specialize in, for instance, construction or structural engineering.
Civil engineers use higher mathematics, economics, biological, and physical sciences to design airports, bridges, buildings, harbors, highways, irrigation systems, manufacturing plants, pipelines, railroads, and tunnels.
They may specialize in construction, environmental, forensic, geotechnical, hydraulic, municipal, structural, transportation, or water resource 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.
A great many civil engineers will thrive as employees within the public or private sector, but some decide to take the plunge and start their own companies.
Owning and managing your own business within the civil engineering branch will allow you greater freedom in deciding what projects to work on, and it can be highly profitable as well.
Civil engineers who own their own business also, on the other hand, face a range of risks, each of which could prove to be financially devastating. What kinds of civil engineer insurance would be needed to protect themselves from the fallout of major perils? To find out more, keep reading.
Civil engineer insurance protects your engineering firms 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 civil engineering insurance questions:
- How Much Does Civil Engineer Insurance Cost?
- Why Do Civil Engineers Need Insurance?
- What Type Of Insurance Do Civil Engineers Need?
How Much Does Civil Engineer Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small civil engineering firms ranges from $37 to $59 per month based on location, type of projects, revenue, claims history and more.
Why Do Civil Engineers Need Insurance?
Civil engineering firms face a variety of hazards, and even though you can reduce your risk by implementing various health, safety, and security measures, it is simply not possible to bring your risk down to zero.
Civil engineers could, at virtually any time, be impacted both by universal risks and industry-specific perils.
Your office space could, for instance, fall victim to burglary, cyber theft, or acts of vandalism, causing significant damage to, or loss of, commercial assets.
On an even larger scale, the threat of acts of nature, like earthquakes, hurricanes, lightning strikes, or other severe weather events also has to be considered.
civil engineers who employ others face the risk that a worker will become injured on the job, and if clients visit you in your office space, an injury on their part could lead to a costly lawsuit, too.
Another serious risk lies in the possibility that a client accuses you of being negligent in carrying out your job, which, especially if such as claim includes bodily injury or serious property damage, can cause costs so massive that they could easily be bankrupting in nature.
Only a solid civil engineer insurance plan, which provides coverage for all the major perils you face, can shield a civil engineer with a private business from the financial disaster these and other unforeseen circumstances would otherwise bring.
That is why it is vital to evaluate your insurance needs with great care.
What Type Of Insurance Do Civil Engineers Need?
Civil engineering is a broad and diverse profession. Your insurance needs will be influenced by the same factors that make your business unique - the exact nature of the work you do, the location where you are based, the size of your business, and how many employees you have.
A commercial insurance broker who understands your field should be consulted to make sure all eventualities are covered. Some of the most important kinds of civil engineer insurance include, however:
- Commercial Property - Your commercial building, your assets within it, and any equipment you have rented, could all be lost or suffer severe damage if your company is affected by an act of nature, theft, or vandalism. This form of insurance will cover a substantial portion of the resulting expenses.
- Commercial General Liability - Whether a visitor to your premises is injured, or your company's activities accidentally cause damage to property belonging to someone else, you can face costly litigation. General liability insurance covers your attorney fees, settlement costs, and other legal expenses.
- Errors And Omissions - This type of civil engineer insurance coverage will help you deal with the financial fallout of claims that you made errors in your job or performed your duties negligently, even if the claim is later found to be baseless. As these kinds of claims are not uncommon for civil engineers, this form of coverage - also called professional liability insurance - is essential.
- Workers' Compensation - You will generally require workers' compensation insurance if you have employees. These policies protect you and your employees in case of a work-related injury or occupational illness (resulting from exposure to harmful substances, for example). The injured employee's medical bills and any lost wages are taken care of, and in turn the risk of lawsuits is reduced.
Although these important types of civil engineer insurance will certainly make running an engineering firm less uncertain, you may also require additional forms of coverage - such as commercial auto, cyber, or environmental liability insurance.
Ask a seasoned commercial insurance agent for further details.
Civil Engineer's Risks & Exposures
Premises liability exposure is limited at the engineer's location. If customers visit the premises, they must be confined to designated areas that are 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 from an error in design that results in structural failures, such as the collapse of an interstate bridge 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.
Agreements with clients, including fee arrangements, should be in writing. Customers can suffer financial loss due to construction delays and cost overruns. Other exposures include allegations of breach of a client's confidentiality or a conflict of interest.
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.
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, foreign objects in the eye, assault, and automobile or aviation accidents. Protective equipment may be required.
Property exposure is primarily that of an office. Ignition sources include electrical wiring, heating and air conditioning systems, wear, and overheating of equipment. The storage of paper reference materials and 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.
Inland marine exposure consists of accounts receivable if the firm offers credit, computers, and valuable papers and records for clients' information, 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 engineers possess unique access to customers' proprietary information. 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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8711 Engineering Services
- NAICS CODE: 541330 Engineering Services
- Suggested ISO General Liability Code(s): 92663
- Suggested Workers Compensation Code(s): 8601
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
Civil Engineer Insurance - The Bottom Line
To learn more about the exact types of civil engineer insurance policies you'll need, and how much coverage to get and the premiums, speak with a reputable business insurance broker.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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
- Temporary Staffing
- Tax Preparer
- Title Abstractors
- Valet Parking
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.