Buying A New Policy From A Professional Liability Insurance Provider
When you start an engineering or architecture firm, you might assume that you will encounter few, if any, liabilities. However, like any business, yours can encounter situations that can be legally and financially perilous. You must be prepared to protect your business from undue losses.
Protecting your business from risks like lawsuits and criminal charges requires you to purchase insurance policies. You can get the protection that you need from a professional liability insurance provider.
Protecting against Lawsuits
Professional liability insurance can come in handy for protecting your business against lawsuits. A disgruntled client could sue your architecture or engineering firm for a flawed or delayed project, for example. You could face paying tens or hundreds of thousands of dollars, if not more, out of your own bank account if you do not have professional liability insurance coverage in place.
The professional liability coverage that you invest in for your business can pay for any damages that the judge or jury awards to the person suing you, however. You avoid paying the judgment or settlement amount out of money that your business has earned so far and instead can have your insurance policy pay it out for you.
Protecting against Accidents
As careful as you and your engineers or architects try to be on work sites, you must always anticipate the risk of accidents. You or someone who works for you can trigger a collapse of building materials, for example. You also might cause an electrical fire or a flood because of clumsiness or not watching where and how you walk on the job site.
Rather than pay for damages from accidents on your own, you can use your professional liability coverage to pay for them. You can ask your professional liability insurance provider to create a policy that will cover incidentals like on-the-job accidents. If or when a client sues you for such damages, you will have coverage in place to cover such liabilities.
Owning an architect or engineering firm is not without its share of risks. You never know if or when a client might sue you for expensive damages. Paying for these damages can cost you money that you do not have in your business or personal bank account. Rather than face financial hardship, you can invest in an insurance policy that will cover losses for you. You can get it from a professional liability insurance provider.