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Professional Liability Insurance for Engineers & Architects 

Professional Liability Insurance (which can also referred to as Errors & Omissions Insurance) is a type of insurance policy that may cover costs that are incurred in the case where you make a mistake while delivering a service, failing to deliver on what you have promised to do or failing to deliver at all. It responds to any claims that arise from acts of professional negligence.

Understanding Professions

What Is an Engineer? 

There are many different types of engineers—essentially, they design products, processes and systems that are intended to protect the environment, enhance the quality of life, health, safety and well-being of the public.

Getting Licensed As a Professional Engineer in Canada

In Canada, you are required to have a license to practice as an engineer. There are several criteria that need to be satisfied to be consider:

  • Academics
    You must hold an engineering degree from a Engineers Canada Accreditation Board-accredited undergraduate program (or possess equivalent qualifications).
  • Work Experience
    Depending on the province you intend on acquiring your license, you will be required to fulfill engineering work experience.
  • Professionalism and Ethics
    You’ll be required to pass the Pass the Professional Practice Examination (PPE).
  • Good Character
    As an applicant, you must demonstrate good character (e.g. a law abiding citizen with a clean record).
  • Language
    You must demonstrate the ability work in either English or French. (i.e. If you intend to get your license in Quebec, you must be able to speak in French).


What Is An Architect? 

An Architect is someone who builds buildings and in most cases, works very close with engineers to manage building projects. Just like engineers, architects are professional and are required to obtain a license to practice in Canada, showing that they are qualified to practice the field of architecture.

Getting Licensed As a Professional Architect in Canada

The minimum academic requirements to meet before applying for licensing is a Bachelor level education. Licensing authorities have developed the Examination for Architects in Canada (ExAC). This examination tests the minimum standards of competency to ensure both the architect and public safety are considered during the skilled delivery of architectural services.

There are four principle factors considering during this examination: 

 

Why Do Engineers and Architects Require Professional Liability Insurance?

Professional Liability Insurance is intended to help protect engineers and architects because they offer professional advice and services to individuals and companies, bearing the full cost of defending against a negligence claim made by a client (should they decide to file a lawsuit against you). In most provinces, licensed engineers and architects are required by law to have professional liability insurance.

Are you an Engineer or Architect looking for professional liability insurance protection? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

What Is Covered Under Professional Liability Insurance for Engineers and Architects?

In most provinces, engineers and architects are required by law to have professional liability insurance.
In most provinces, engineers and architects are required by law to have professional liability insurance.

Most professional liability insurance policies may cover economic (financial losses) which are suffered by third-parties. This type of coverage is meant to protect you by covering the costs that are associated with any errors in the services that you have provided to your clients and customers. Along with tech startups, this also applies to consultants, lawyers, accountants, brokers and financial advisors.

The most common exclusions in coverage for a professional liability police are:

  • Bodily Injury (BI) and;
  • Property Damage (PD)

The above are covered by Commercial General Liability (CGL).

What Is Not Covered Under Professional Liability Insurance for Engineers and Architects?

To fully protect your tech startup, you’ll need to consider some other common policies. Here’s a list of additional protection policies that tech startups typically bundle with their professional liability insurance: 

  • Commercial General Liability Insurance (CGL)
    This is the foundational liability insurance that any business should own at minimum. It coverts third-party lawsuits (bodily injury and property damage). (e.g. You meet a client in their home, slip and fall on something on their property and hurt yourself).
  • Business Interruption 
    If you rent an office for your business and a flood destroys your work space, business interruption insurance may cover the costs associated with loss of income due to operations put to a halt.
  • Cyber Insurance
    If your customer information is compromised and their personal information is used against them (e.g. fraud activity where their I.D. is used), your customer can sue you for the cost of the damages associated. The added protection is a smart move, especially since the number of cyber attacks continue to grow, costing businesses lucrative amounts of money.
  • Directors & Officers Insurance (D&O)
    Directors & Officers Insurance protects your company against “wrongful acts” such as errors, omissions, breach of duty, neglect and misleading statements made on behalf of the company.
  • Legal Expense Insurance
    This type of insurance policy may cover legal costs allotted to defend your legal rights. This is especially targeted toward some claims relating to employment disputes, legal defence, contract disputes & debt recovery, statutory license protection, property protection, bodily injury and tax protection. (e.g. a former employee files a lawsuit against your company for wrongful dismissal. This policy will cover the cost of legal expenses).
  • Property Insurance
    Any property that you own which is used for your business which is damaged or stolen may be covered. (e.g. You have a company laptop that was stolen when someone broke into your commercial vehicle).
  • Contents Insurance
    This may cover the damage to, or loss of, your company assets and possessions. (e.g. Your work jacket was stolen—it was left in the back of your commercial truck, which was stolen).

If you’d like to know how to bundle your insurance protection to protect your business, call us at +1-888-654-6030 and one of our licensed Insurance Advisors would be happy to answer any questions you have. 

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

How Much Does Professional Liability Insurance For Engineers or Architects Cost?

The cost of owning professional liability insurance as an engineer or architect will depend on a number of factors. Typically, premiums (what you pay for your insurance) will be based on various factors including your company’s gross revenue, founder resumes and financials.

If you’re ready to get a free quote online, our online tool can help you find an estimate in under 5 minutes!

What Kind of Information Do I Need To Get a Quote For Professional Liability Insurance for Engineers or Architects?

Some wise advice? To save yourself some time, it’s is a good idea to do some digging and gather some pertinent business information about you or the your company before requesting a quote.

Another great idea is to put together a list of questions beforehand so that you don’t forget what to ask once you get to speak to a broker about your options for professional liability insurance coverage. Think about the possible risks that you or your company can face when operating your business.

Here’s a list of several types of information about your business that you’ll need to gather in preparation for your search:

  • Name of your company
  • Address (and locations if applicable)
  • Revenue—this is a driving factor for your policy premium
  • Your company structure—(i.e. sole proprietorship, corporation, partnership, joint venture or franchise?)
  • The date that your company was established
  • Is your company registered in Canada?
  • What is the number of employees working for your company?
  • Do your employ subcontractors?
  • Privacy—do you collect private information (e.g. customer data, financial information). What measures do you take to protect this information?

Having this information will make requesting a quote easy and fast—whether it’s online, over the phone or in person, and will likely prompt more questions to ask!

If you’re ready to get a free quote online, Zensurance is making it easy for business owners to get a quote in under 5 minutes!

Looking for professional liability insurance for engineers or architects? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 


A Recap of What You’ve Learned About Professional Liability Insurance for Engineers or Architects

  • Professional Liability Insurance (which can also be referred to as Errors & Omissions Insurance) is an important policy that may cover costs that you incur in the case where you make a mistake while delivering a service, failing to deliver on what you promised to do or failing to deliver at all.
  • Professional liability insurance coverage focuses on alleged failure to perform on the part of, financial loss caused by, an error or omission in the service or product sold by the policyholder.
  • Wondering when you need to get it? The moment your tech startup goes into beta or live, you’ll require professional liability insurance.
  • Most professional liability insurance policies cover economic (financial losses) which are suffered by third-parties.
  • The most common exclusions in professional liability insurance policyare:
    • Bodily Injury (BI) and;
    • Property Damage (PD)
  • Make sure you are prepared! When you research quotes and are trying to find professional liability insurance for engineers or architects, it’s always smart to gather your business information beforehand. You’ll save time and will be making it easier for you and the insurance provider.
  • The cost of professional liability insurance for engineers or architects will depend on a number of factors, including your company’s gross revenue, founder resumes and financials.
  • To fully protect your commercial business, you’ll need to consider some other common policies. Some of the other common policies that engineers and architects should consider are Commercial General Liability Insurance (CGL), Business Interruption Insurance, Cyber Insurance, Directors & Officers (D&O) Insurance, Legal Expense Insurance, Property Insurance and Contents Insurance. 
  • Finding professional liability insurance for engineers or architects doesn’t have to be an arduous process. Planning ahead of time will make your experience a better one. Don’t forget to ask questions when you’re speaking to a licensed broker to see if they’re a good fit for you.
  • Do they answer your questions clearly and explain insurance terminology to you in a way that’s easy to understand? Are they available when you need them to be? Ask about the claim process, whether claims can be submitted online or if you’ll need to mail forms out.
  • On-going management of your policy—is there a digital dashboard that you’ll be provided to view your policy? If you purchased multiple policies, are there any available discounts? Will you have a dedicated licensed broker assigned to your business? Make sure to make a list of questions to ask so that you can address them without forgetting.

A List of Resources for Engineers and Architects in Canada

Below you’ll find some very valuable resources that you should bookmark. We hope you take advantage of these links. If you think something might be missing or would like to suggest anything, we’re all ears! Send them to content@zensurance.com.

Associations 

Regulatory 

Passive House

Events & Conferences 

Research & Insights 

News & Media 

Looking for professional liability insurance for engineers or architects? Get your FREE quote online

At Zensurance, we’re making commercial business insurance easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. You could walk away with an estimated quote in under 5 minutes!