Engineering Contractor Insurance
Understanding and mitigating risk is a core part of most engineering roles. So it is no surprise that many engineering contractors
choose professional indemnity contractor insurance
cover. Without contractor insurance
, your limited company would be liable for legal costs and compensation if one of your clients sued you for negligence.
Although contractor insurance is not mandatory for registration with the Engineering Council, many engineering contracts require you to have a minimum level of contractor insurance cover before you can take on the role. If this is the case, securing the right level of contractor insurance cover can be completed conveniently and swiftly over the phone or online.
Engineering is a vast field, and so are the potential risks covered by contractor insurance
The exact type of contractor insurance cover you can purchase, the exclusions and premiums will depend on your area of engineering and projects. If you are an office-based CAD technician
requiring cover of only £1m, then your premium and exclusions in your policy documentation will reflect the relatively lower risk you face.
If, however, you are an energy contractor
spending time offshore
and your clients routinely insist you hold contractor insurance
with cover up to £5m over 10 years, your premiums will reflect this. But you will find that your contractor insurance correspondingly increases your cover and may reduce the number of exclusions. Engineering contractors
can typically work anywhere in the world, so it is important you update your contractor insurance provider if you’re planning to work abroad. For example, contracting in North America is likely to require an additional contractor insurance premium, because of the sometimes litigious nature of engineering clients in the region.
Apply professional best practice and avoid contractor insurance claims
Your professional indemnity
contractor insurance is probably the last insurance policy that you would want to make a claim against. That’s because if you do need to make a claim, you have a client accusing you of professional negligence and seeking compensation from your contractor insurance.
But if you’ve applied your professional best practice and risk management experience to all of the engineering projects you’ve delivered as a contractor, then you can avoid what can be a stressful and time-consuming experience. But with your contractor insurance
in place, you will have the guidance and financial support to defend yourself, or to pay compensation if you have made a costly error.