Electrical Engineering Errors and Omissions (E&O) Insurance

We offer errors and omissions (E&O) insurance, also called professional liability insurance, to electrical engineers who work in all fields. Electrical engineers research, design, develop, test, and oversee the development of electronic systems and the manufacture of electrical and electronic equipment and devices.

Do electrical engineers need errors and omissions insurance?

Electrical 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, electrical engineers can be held responsible for significant damages. Lawsuits against electrical 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, electrical engineers still face costly legal fees. It is therefore vital for electrical engineers to have the proper E&O insurance protection.

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

Errors and omissions insurance protects electrical 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. Electrical 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. Electrical engineers should carefully review their policy to ensure that adequate coverage is provided.