Engineers – What Type Of Insurance Is Needed?

engineer insurance

As an Engineer, you know the complex nature of designing and building ideas from the ground up. No matter what your specialty, it’s important to protect your reputation, your business, and keep everyone safe. 

Identifying and carrying the right insurance is key to safeguarding your future. It is crucial that you review your needs and carry appropriate policies for your services and your company. 

Public liability insurance is a critical component in your overall insurance plan. This type of policy protects your business if a customer, supplier, or member of the public is injured or sustains any type of damage as a result of negligent business activities. 

Businesses have a legal responsibility to take reasonable steps for the safety of their customers, suppliers, and the community and for their property. Public liability insurance covers Engineers in the event they are held liable for any third-party injury or for any property damage at the site. 

Another critical insurance to carry is professional indemnity coverage. This policy covers engineers for advice or recommendations that they provide. Given there are many types of engineering specialties – chemical, forensic, mechanical, electrical, civil, industrial – it’s extremely important to have a complete understanding of the types of services and activities that you are offering. Once it’s clear, the type of insurance policies needed to cover your business and practices can be identified. 

Why Is Comprehensive Insurance Needed By Engineers? 

Comprehensive business insurance should be maintained in order to protect your overall business. This will give you peace of mind so you can concentrate on making your business successful. The best-case scenario is to have the highest level of insurance coverage as possible. 

Examples of some risks that Engineers may face include: 

- Incorrect certification(s) 
- Inadequate designs or specifications communicated 
- Perceived poor project management 
- Allegations of professional negligence 

Regardless of the number of hours, energy and effort that goes into a project, things don’t always go 100% according to plan. There are issues that are out of your control – weather, labour, suppliers, unexpected delays – which can affect the deliverables on the contract with a client. 

Knowing how much coverage you need and what policies suit you best can be confusing, but it’s essential to have insurance policies in place to help protect you. If you are not appropriately covered, you may be open to liability which could include substantial claims or significant legal fees. 

Essential Insurance For Engineers 

All Engineers in Australia must hold Public Liability and Professional Indemnity insurance policies. Both policies are required by the National Council of Engineers set out by Australia. 

Engineers have a crucial duty of care towards a large network of people – clients, contractors, consultants, and the public. The risks involved with construction and architectural projects, based on the nature of the work, requires comprehensive insurance policies to minimize liabilities. This will protect Engineers on many different levels, including areas that include advice and direction required as part of the career. 

Professional Indemnity Insurance 

PI Insurance protects Engineers against claims that allege a breach of professional duty, which could include damages and legal fees that are incurred by defending a claim. Professional Indemnity insurance is a requirement for all Engineers. 

With Professional Indemnity insurance, you are ensuring your assets are protected in case of a costly claim and will also put you in compliance with the government regulations. 

Considered to be experts, Engineers are responsible to act with a “Duty of Care.” If this care is perceived to have been breached, damages can be claimed against you by people who are affected. 

Public Liability Insurance 

Unfortunately, accidents do happen. Public Liability insurance provides coverage from the smallest of errors to the largest of incidents, so it’s best to be fully covered. Engineers work in spaces with the public, staff, clients, and contractors. PL insurance protects you against any liability, such as injury or damage, that happens on or around the area connected with your business. 

From minor slip and fall claims to death or serious injury, claims can be made for any type of scenario. It’s critical to have coverage to protect you and your business. 

What Level Of Insurance Coverage Do Engineers Need? 

The necessary coverage level will be based on a variety of factors. You want to make sure you are fully covered for every way possible. 

Seek out expert advice to ensure you are fully covered and in compliance with the legal requirements. The information that you need to consider for your necessary coverage should include: 

- Risks associated with the specific type of engineering practice you are engaged in 

- Industry regulations, as well as the required regulations for your geographical region 

- The size and scope of your business 

- Your budget 

- The overall value of your assets and the project 

Peace Of Mind 

Protecting your engineering business with the most suitable and comprehensive insurance policies will give you peace of mind. Even though it may seem like a costly investment, it’s critical to protect your business. Things do not always go as planned, mistakes happen, and nothing is guaranteed. Being covered with great engineer insurance will ensure you have the type of coverage that enables you to continue to do your work with minimal interruption. 

Quotes for engineer insurance can be obtained from a range of sources. You can contact the insurance companies directly, however this generally involves a lot of running around if you want to compare quotes from a variety of insurers. 

A better option for engineer insurance for many business owners is to use an insurance broker or adviser who can obtain quotes on your behalf from a wide range of companies offering insurance. BizCover has access to a network of insurance companies and can quickly provide you many policy options to choose from to secure the most suitable insurance to your business. For additional information regarding the importance of insuring your start-up business, please see

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