Insurance and Liability for PEs 1

[cedarbluffranch]

I'll be taking the PE exam here on October 24th and, with luck and fast writing, I'll be a PE by the end of the year.

Should I end up purchasing a stamp and actually sign off on drawings, I surely understand that I will be assuming liability for the things I'm stamping off on. What kind of insurance and how much does it cost to protect myself from future liabilities?

I guess the other option would be to form an LLC and do all of my work under the LLC. In that case, I believe I could dissolve the LLC should something come back and bite me?

Right now this is all theoretical - I don't know what I'd do anyway with my PE and have no plans on opening a business. I would like to get an idea of what other PEs do and what my options are should I decide to pursue this more in the future.

 

[zdas04]

TALK TO A LAWYER, NOT A BUNCH OF ENGINEERS.

When I had to make the same decision I started digging and found that incorporation did not shield my PE. MuleShoe Engineering (my company) does not possess a PE stamp. I do. If I stamp something and it goes horribly wrong then it is my butt in court/jail not MuleShoe Engineering. Incorporating can protect your personal assets from someone tripping over your door steps and suing you, but if you stamp an SPCC Plan that is involved in dumping millions of gallons of oil into a navigable waterway, it is immaterial whether you work for a sole proprietorship or an LLC, you're still the one in court.

B&PL insurance is required by many of the Master Service Agreements that I sign to allow me to do work for my clients. If I wasn't contractually obligated to have it, I'd probably cowboy the risks and keep the $20k/year that insurance costs.

Good luck on the test.


David Simpson, PE
MuleShoe Engineering

http://www.muleshoe-eng.com

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips Fora.

The main difference beteen humans and apes is that we have cooler tools

 

[cvg]

E&O insurance protects all engineers working for the company that purchases it. Incorporation provides no protection at all. Do a google search for E&O (Errors & Omissions Insurance) and you will find plenty of information. Depending on your line of work, you may or may not have significant risk. but if you do, get the insurance. But don't be fooled, it will cover a large claim, minus the deductible - but you will still have to defend yourself in court which can be a killer, even if you win the case... One good reason to work for somebody else.

 

[tygerdawg]

This has been discussed in this forum over and over and over and over and..... Search & read up for good info from experienced people.

TygerDawg
Blue Technik LLC
Virtuoso Robotics Engineering

http://www.bluetechnik.com

 

[Hoagie]

Speak to your HR director and express to him an interest in the risk side of the business. Most underwriters offer some type of training, be it either an agent, or a help desk, or a manual, or even training.

As for a buisness plan, there are plenty of sources to learn more about LLC/LLP.

 

[MiketheEngineer]

Do you work for a company??? They should have the coverage..