Can you still be responsible for you designs after your insurance laps 1

[Tobalcane]

Ladies and Gentlemen:

I will be taking the PE Mech exam this October. So I’m pretty much new in the “PE World”. My question is insurance. I know that insurance is needed just incase something goes wrong with your design, and it will cover the accident just as long you are still paying for it. Now, what happens when you retire and let your insurance laps, can you still be financially responsible for your designs lets say fifteen years ago? To my understanding, it sounds like you may have to keep paying premiums for insurance until you die.

Thanks for your effort and time,
Tobalcane

 

[DRC1]

Insurance is very complex and for the best advise talk to an agent. First most states have limitations on how long you can bring an action against a designer after a structure is completed. Second, different types of insurance address claims differently. Professional liability insurance, refered to as errors & ommisions insurance is usually an occurance type coverage, which means if you bought the insurance, performed the work and later decided not to renew the policy (say you take time off to tour with the rolling stones)and a claim is made against you for that design, the insurance company is obligated, even if you no longer have the policy.
The other type of insurance is claims made and that coverage expires with the insurance. However you can purchase a tail which extends coverage for a specific time after the policy period expires. This is more common on contractor's G&L (General Liability).
Note that you will generally have a deductable such as $100,000. This means the first $100,000 of the policy is paid by you. Insurance (and deductables) also inculde the cost of your defense by the insurance company(although the legal bills do not go against the value of the policy.
Typically you don't have to worry about this until you go in business for your self. Generally your employer will cary insurance for the entire practice so anything you do for the company is indemnified. Just be careful about moonlighting.

 

[jheidt2543]

You are responsible for your designs, regardless of whether you are insured or not, until the Statute of Limitations in your state runs out.

However, one other thing to note is once an Owner has modified your design in anyway, you are out from under the gun.