Chemical Engineering Errors and Omissions (E&O) Insurance

We offer errors and omissions (E&O) insurance, also called professional liability insurance, to chemical engineers who work in all fields. Chemical engineers use their knowledge of chemistry, physics, biology, mathematics and economics to develop new processes and products and to improve existing processes. Chemical engineers are usually involved in chemicals manufacturing, materials manufacturing, biomedical engineering, pharmaceuticals, energy conversion, and food processing.

Do chemical engineers need errors and omissions insurance?

Chemical engineers face exposure to E&O and malpractice lawsuits based on alleged breach of contract and failure to exercise due care. If found as having been negligent, chemical engineers can be held responsible for significant damages. Lawsuits against chemical engineers can be based on issues such as error in design, construction defect, calculation error, and failure to follow standards or regulations.

Even if a lawsuit is not justified, chemical engineers still face costly legal fees. It is therefore vital for chemical engineers to have the proper E&O insurance protection.

What coverage is provided to chemical engineers by errors and omissions insurance?

Errors and omissions insurance protects chemical engineers against claims made in connection with a negligent act, error or omission committed in the performance of professional services. The policy provides for the payment of damages that the insured becomes legally obligated to pay as a result of a covered claim as well as for claim expenses, including defense costs. Chemical engineers should be aware that errors and omissions insurance policies include multiple exclusions, such as:

• Failure to obtain or maintain any type of insurance
• Claim made by an insured against another insured
• Dishonest, fraudulent, criminal, malicious or intentional acts
• Liabilities assumed from another party
• Express warranties or guarantees
• Fines and penalties

Many other exclusions and limitations are included in errors and omissions insurance policies. Chemical engineers should carefully review their policy to ensure that adequate coverage is provided.