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Engineering Insurance

Contractors Insurance is an award-winning commercial insurance brokerage firm trusted by Ontario businesses. For engineers, precision and attention to detail are key, and errors in planning and design can be costly and harmful to your reputation. Whether you’re a contracting engineer or part of an engineering firm, having the right professional liability insurance for engineers will help protect you from financial loss due to the risks associated with your industry. 

Over the years, our customized coverage has protected thousands of engineers on the job. We’ve earned industry recognition for the high-calibre service we provide. With Contractors Insurance, you can be sure you’re in good hands.

What is Professional Engineering Insurance? 

Professional engineering insurance is a specialized type of professional liability insurance designed to protect engineers and engineering firms from the risks associated with their industry. It provides financial protection for those involved in engineering or construction, covering a range of potential risks. 

Engineering insurance is tailored to mitigate industry-specific risks, ensuring continuity and financial stability in case of unforeseen events. Due to the expertise and sensitive nature of this profession, it’s strongly recommended engineers carry professional liability insurance. However, specific industries should combine other types of insurance to tailor their coverage for their unique risks.

What Does Engineering Insurance Cover? 

Here are some key coverages to build a comprehensive engineering insurance policy:

Professional Liability Insurance 

A professional liability insurance policy protects engineers from litigation and financial loss due to claims arising from errors or perceived errors, negligent professional advice, incorrect calculations, failure to follow industry standards, and unexpected costs or delays.

Commercial General Liability Insurance

For architectural and engineering firms, the Commercial General Liability (CGL) insurance covers repair/replacement costs, medical costs, and legal costs associated with third-party injuries or property damage related to an ongoing/completed project, third-party injuries happening on/around the engineer’s business premises, and advertising or reputational injuries (libel, slander, copyright infringement, etc.).

Commercial Property Insurance 

Engineering firms in Ontario often operate out of physical locations that store essential equipment, materials, and sensitive client data. Commercial property insurance covers financial loss if your property is subject to theft, vandalism, natural disasters that damage the property or limit its accessibility, or business interruptions due to the above causes. 

Commercial Auto Insurance 

Commercial auto insurance is required for firms that use motor vehicles in their day-to-day operations. Beyond protecting your vehicles from theft and vandalism, this type of insurance will also cover the cost of medical care, repair, replacement, and/or legal claims related to bodily injuries and property damage caused by your commercial vehicles. 

Surety Bonds 

Surety bonds may be required for certain projects. They are a guarantee that the engineer will complete the project per the contract and comply with regulations. 

Who Needs Liability Insurance for Engineers?

Engineering is a high-risk profession that involves managing, creating, designing or maintaining projects, systems, or entire sites. 

Although insurance for engineers is beneficial to all industry professionals, the following types of engineers can benefit from customized policies from a trusted insurance provider:

  • Civil Engineers: They oversee, plan, and manage the construction of infrastructure and buildings. Data analysis errors, survey report mishandling, functional flaws, and overlooking regulations can lead to litigation.
  • Electrical Engineers: They design, program, direct, and develop the manufacturing and installation of electrical equipment. Component failure, installation hurdles, and code safety violations can damage their professional reputation.
  • Mechanical Engineers: They research, install, maintain, and test machinery. Even a minor operational or system fault can cause major issues. Engineering insurance can help minimize the financial impact of these events.
  • Software Engineers: They design, test, and maintain software. From documenting to problem-solving, each task requires attention to detail, leaving room for potential errors. 
  • Structural Engineers: Risk management assessment is paramount to a project’s success. Implementation of the plan on a large scale usually means factoring in multiple variables, underscoring the need for engineering insurance. 
  • Environmental Engineers: They have to plan, supervise, and design systems, often for large-scale projects. There is an added risk of environmental harm or hazard, which pollution liability insurance can help mitigate. 

Why is it Important for Ontario Engineers to Have Engineering Insurance? 

Just like other design professionals, architects and engineers in Canada can face litigation for their mistakes if a client alleges malpractice or negligence. Engineering liability insurance often includes Errors & Omissions Insurance, which shields engineers, firms, employees, and business owners from financial losses.

Engineer Insurance Claims Examples
Claims Example #1
  • Problem Icon

    Due to unforeseen circumstances and miscalculations, the project is over budget by $50,000 and delayed by one month, leading to additional soft costs in the form of lost income for the client. The client sues you for professional negligence.  

  • Outcome Icon

    The client successfully sues. Your professional liability insurance will cover the total cost (including legal fees and settlement) of $100,000.

Claims Example #2
  • Problem Icon

    You’re on your way to a job site when your commercial vehicle gets involved in an accident. You’re fine but the other driver is badly injured and both cars are damaged. You are sued for bodily injury and property damage. 

  • Outcome Icon

    The client successfully sues. Your additional coverage of commercial vehicle insurance will cover property repair costs, medical costs, and legal fees, amounting to $45,000. 

Claims Example #3
  • Problem Icon

    An accident at the job site leaves you injured with a broken leg and you will need medical treatment and at least 4 weeks of rest before resuming normal duties. 

  • Outcome Icon

    Your engineer insurance policy will cover medical costs, as well as lost income of up to $23,500.

Leading Provider of Engineer Insurance in Ontario 

Our customer-centric approach drives everything we do and is one of the main reasons our clients prefer us. Below are some benefits we offer. 

Customized Insurance Plans 

Our customized engineering liability insurance plans enable you to provide uninterrupted professional services without worrying about potential lawsuits. Only pay for what you need—comprehensive coverage plans personalized for your business and employees. 

Total Transparency 

We take the guesswork out of choosing engineer insurance coverage. Whether you choose a professional liability insurance policy or combine it with other professional services insurance types, we strive to be as transparent as possible when discussing your coverage and its limits, exclusions, and triggers.

Across-the-Board Insurance Education 

We maintain clarity in all our business transactions. For this reason, we clearly state our program details, including what they cover, what you’re paying for, and what members can expect from us. You can always ask questions and raise concerns, we’re happy to thoroughly discuss your plan with you.

Frequently Asked Questions About Professional Engineer Insurance

Professional liability insurance provides primary protection to engineers across Canada from lawsuits and financial loss. The average cost typically ranges from $60/month, with coverage amounts between $500,000 and $2 million. Add-ons may cost more, but combining them with other insurance policies can be a cost-effective solution.

According to the Professional Engineers Act, an engineer who holds a Certificate of Authorization, which is the license that permits an engineer to offer their services to the public, must either secure professional liability insurance or agree to compulsory disclosure.

In case of professional negligence by gas engineers, public liability insurance for gas engineers protects against claims related to third-party bodily injuries, property damage, and injury to members of the public. Gas engineer public liability insurance usually costs around $55 to $70 per month, but the amount may vary depending on the coverage limit.

Ready to Get the Coverage You Need? 

Contractor’s Insurance is an award-winning insurance brokerage that provides Ontario businesses and individual contractors with the peace of mind they need for smooth operations. Looking to protect your firm with comprehensive engineering insurance coverage? Let us tailor a robust plan that meets your needs. As one of Ontario’s most trusted insurance brokers, we’re here to help.

Set yourself up for success with personalized professional liability coverage that meets your unique requirements. Contact us today to get started.

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