Self-employment on the side...

[Jambruins]

I just got my civil engineering license. I currently work for a company that produces stone, concrete and asphalt. Every 5 years we have to update our mine plans and renew our permits which include a stamped site plan. We currently sub-out the site plans as we don't have a licensed engineer. I am hoping to start stamping our plans myself instead of subbing them out.

The stuff I would like to do on the side is perc/deep hole tests and small residential projects. It would not be a conflict of interest with my current company at all.

What kind of insurance do I need? Liability, E&O, etc.?

How do I go about getting insurance?

If I do end up stamping the plans for my current company would it be reasonable for them to pay for my insurance?

Thanks.

 

[msquared48]

As the markets are different here, I see no problem with that aspect.

However, I would keep the insurance policies separate - they pay for theirs and you yours - If I remember correctly, on the policy you have to list what you will be doing which they will see and question if you combine them.

CNA is a good company to start with, and some engineering societies have their own insurance too.

You need E&O.

Mike McCann
MMC Engineering

 

[Jambruins]

what about liability insurance?

 

[Ron]

If you go on a jobsite for any reason, you need general liability insurance in addition to your professional liability insurance. I agree with Mike...keep them separate.

You will pay for professional liability insurance based on your GROSS revenue. You don't want your company's gross revenue figured into that!!

 

[Jambruins]

So I need general liability, professional liability and E&O? Thanks.

 

[dig1]

Jambruins,

In addition, you may also need worker's compensation and commercial auto liability insurance.

WC requirements vary by state and owner. Being a sole prop. you may be able to get a zero payroll policy (these are relatively inexpensive). Check with a local insurance agent that handles business insurance.

Commercial auto may also be a client requirement.

If you are doing work for a developer and are on their site they may request both WC & comm auto (for when you drive your vechicle on their property).

A typical homeowner probably would not ask for these policies.

These are in addition to general liability and professional liability (E&O) insurances.

Ron and Mike are definitely right about keeping your employed and SE E&O policies separate.

Patrick