Insurance required for design work?

[TXMEEN]

I have heard that some companies carry insurance for doing design work. What kind of insurance would be necessary? Would this insurance be necessary for an individual working on their own?

 

[grimmy65]

Does work-for-hire apply to liability the same way it applys to copyright? I have heard this argument being made and wondered if it had any merit with respect to engineering design.

 

[rcw retired EE]

A very well respected engineer in our state had his own small Electrical Engineering firm that did not cary E&O insurance, (so he claimed). His home was in his wife's name and they had few other assets.

Several times he was approached by lawyers for clients looking to sue him for some perceived design issue. He provided the lawyers his net worth information and never heard from them again. Without insurance, he was not worth the lawyer's time.

I think he was just lucky.

Does having insurance make an engineer a bigger target for suit happy lawyers?

 

[rbulsara]

Yes, but there are not many clients who would hire a consultant without professional liability insurance and even more.

Rafiq Bulsara

http://www.srengineersct.com

 

[TXMEEN]

I did recieve a few quotes for insurance and for an individual it appears it would be around $3600-$5000/year.

It looks like it would be tough for an individual that likes to do design for fun on the side. I wonder if there is a way around this. Maybe if a company vs. an individual hires you to do the work part time and also adding you to their insurance.