Mechanical Engineering Errors and Omissions (E&O) Insurance

We offer errors and omissions (E&O) insurance, also called professional liability insurance, to mechanical engineers who work in all fields. Mechanical engineers analyze, design, develop, manufacture, and test mechanical systems such as tools, engines, machines, and other mechanical devices. Many mechanical engineers specialize in areas such as manufacturing, robotics, automotive, transportation, and air conditioning. Others cross over into other disciplines, working on everything from artificial organs to the expanding field of nanotechnology.

Mechanical engineers are employed by organizations such as manufacturers, engineering consultants, various levels of government, research and development organizations, and ship builders.

Do mechanical engineers need errors and omissions insurance?

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

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

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