Many professions are highly skilled and use their knowledge to perform various services. This is true for the engineering field where they are in great demand in numerous sectors. Engineers are able to analyze situations and come up with appropriate solutions. While engineers do not intend to provide advice that causes error, it can happen. In these situations, someone may suffer some sort of loss. They may file a claim against the engineer or the engineering firm to right the wrong. In these situations, it is important that engineers have proper professional indemnity insurance.
When faced with a claim, the expenses can be quite overwhelming. In some instances so much that it could cause more of an impact than a business can endure. However, this need not happen with adequate professional indemnity insurance. Expenses for such claims would include hiring legal representation to defend the engineer or the firm. In some situations the legal representation is needed for negotiations to avoid a legal claim going to the courts. Professional indemnity insurance would cover both of these types of legal costs. Professional indemnity insurance also can help in situations where documents have been lost. Also, situations involving dishonest behaviour or fraudulent filings can also be covered.
Professional indemnity insurance from Markel UK also covers any damages that made be awarded to the claimant. Often these awards can be rather lofty and can possibly be another stressor on the financial health of any business. Coverage can often be back dated to cover previous projects. This only hinges on if there have been no claims made.
Some engineers might be reluctant to take out a professional indemnity insurance policy due to costs. However, if you calculate the long term benefits and take into account what one claim could cost, it is actually a very responsible business decision. Most insurers offer professional indemnity insurance with high limits.
