Congratulations! You have got the job! We all get excited and overjoyed when such a message pops up on our screens during our job search journey. This could be your very first job to kick start your career or a big career break. Despite the benefits and pay that come with the job, there is one more consideration you should make, especially if you are an engineer.
Securing your hard-earned job with insurance coverage is of absolute importance. Yes, we are talking about professional indemnity insurance. Let us decode what it entails, why it is necessary, and the benefits of coverage.
Professional Indemnity Insurance Defined
It is a type of insurance that protects you from any negligence or claims made against you as an individual or as a company. It covers both the monetary loss and the legal costs involved. It is an important form of coverage for engineers, thus helping them secure themselves from any unforeseen conditions or disasters that are not called for. Some business insurance blogs explain the list of all the unforeseen conditions that help you pick the right insurance coverage according to your risk levels. This insurance covers all engineers and professionals, regardless of domain, whether you are an architect, civil engineer, mechanical engineer, or aeronautical engineer.
What happens if you do not have professional indemnity insurance?
Let us consider a few situations where you, as an engineer, might end up in a soup, and coming out of these scenarios might be a tough nut to crack.
- A building collapse has resulted in the deaths of a few innocent labourers. Consider yourself the building contractor; what would your situation be in such a critical condition?
- Despite wearing a safety harness and taking precautions, a painter on a construction site falls from the 8th floor. On construction sites, where safety accidents are common, safety engineers are held accountable for them.
- What if there is a beam crack leading to the failure of columns in a commercial building? Even though it might not take people’s lives, it does cost a fortune for the building owner to rebuild that part again. Architects and Civil Engineers are usually under the radar for design failures.
- An accidental fire that sparks in a chemical factory is too dangerous, as there are hazardous chemicals inside the premises. This can cause huge losses to the company and its property. The chief chemical engineer will be at fault and can even be sued.
- Heavy rains and snowfall can rub off the top layer of bitumen on roads during extreme weather conditions. Highway engineers must bear the costs, even though it’s not their fault.
These are just a few perilous conditions that might happen due to your negligence or even due to unforeseen conditions (5th point) when you are the in-charge engineer for that job. Having professional indemnity insurance coverage for engineers will save you from such troubled waters.
This leads us to the next part of the blog: the benefits of indemnity insurance coverage.
Benefits of Professional Indemnity Insurance for Engineers
The following are the advantages it offers:
Protection against Lawsuits: If you are held liable for your negligence and found guilty, your client might sue you for your professional services as well as your licence. In such cases, indemnity insurance will protect you from any personal losses to your company as well as any compensation claims.
Financial Guard: Yes, this insurance acts as your financial guard in case you suffer any damages due to your client’s mistakes. This works the other way around as well. It covers you against any losses, including legal fees, property damage, or financial losses.
Protection from Reputation Damage: When you show your future clients that you are secure, they get a sense of confidence in you. Despite protecting you from reputational damage, the insurance also protects you from any such claims in the future.
Stress-free: When you are getting pulled away from all the agencies due to claims against you, it will impact both your well-being and your work productivity. With the right insurance coverage, all your stress and tension are warded off, giving you peace of mind.
Wrapping Up
If you are a practising engineer, a solopreneur, or even an employee of a company, having indemnity insurance is imperative. It will protect you and your business from all the damages if any claims are made against you. You never know when uncertainty will strike, so before you drown in all the mess, get yourself an engineer’s shield.
