As an engineer you might have designed, developed and engineered some excellent good ideas; software; or products, but can you deny the risks associated with these services? So, have you got yourself covered with an engineering insurance policy to safeguard from these impending risks? Although, many engineers are aware of professional indemnity, they somehow are of the belief that ‘they-the engineers’ don’t need it!
Say for example, you are a design engineer. The mistakes in your design of a software/ device/ product/ building can be very costly (for the client!) and the client has every right to claim the financial loss from you. Be it any field – IT, electronics, civil etc. It’s the engineers that form the brain behind the work and when things go wrong, it’s the brain that’s blamed! Added to it is the ‘sudden growth, sudden fall’ nature of the businesses (making it riskier).
Engineering Insurance – Why is it required?
There is more than one reason for an engineer to purchase professional indemnity insurance.
Safety: Firstly, insurance will ensure a cover (including the legal expenses and loss up to a upper limit) for a claim from your clients- either for a mistake of yours or a false complaint.
Professionalism and a sign of authenticity: Of late, an increasing number of clients are looking out for engineers with professional indemnity cover for their work. Having indemnity insurance, will give a professional edge to your firm/service.
The housing grants Construction regeneration act, 1996 (in regard to construction industry) and many such legislations, has proved the essentiality of professional indemnity insurance.
Tax and other benefits: Professional indemnity insurance supports your ‘independent status.’ They are fully allowable against taxes (not to mention the PAYE and VAT benefits) and will aid your argument against an IR35 ruling too.
Engineering insurance is your bet to engineer safety!
Tags: false complaint, housing grants, insurance safety, professional indemnity insurance, regeneration act