As an architect or engineer, you know that your general liability policy is there to cover physical risks posed by the business you do. On the other hand, professional liability, or engineering errors and omissions insurance protects you for more intangible items like work completed late or differently than originally agreed upon.

Who Needs Errors and Omissions Insurance?

Any person who provides a service in the course of business needs and E&O policy. Especially as an architect or engineer, projects can run over or you may have to make unforeseen changes with which the client is unhappy. Even where you are not at fault, such as in the case of defects in construction caused by the contractor, the owner may come back and sue you as well.

How Does Engineering Errors and Omissions Insurance Work?

Remember that your client may not know they have a reason to be unhappy with your work until months or even years later. Maintaining an E&O policy means you are covered for any claims that occur after your policy begins. Besides paying any judgments against you, up to the limits of the policy, having E&O insurance means that you won’t have to pay legal fees out of pocket to defend yourself.

E&O is peace of mind that even when things don’t go perfectly, your business finances won’t suffer.