Stamping plans/Insurance coverage...for my company

[Jambruins]

I work for a company that produces stone, asphalt and concrete. Occasionally we have some work that needs to have engineered plans. We currently sub this work out to a local engineer. I have my PE license and would like to start doing this work myself for the company. Most of the work would be site plan or stormwater and spill prevention reports which need to be prepared by an engineer but there will be some structural work. I talked to the company about including me on their insurance but they don't seem to want to do this. The amount I would be paid will not cover the cost of the insurance so is there anything we can do (clause in their insurance policy, contract, etc.) that wold allow me to do this work without having to get professional liability insurance? Thanks.

 

[brandoncdg]

No way would your company let you stamp without you being insured.

How come you want to stamp the plans anyways? I don't understand why everyone is so eager to stamp plans. I saw this a lot at one of my old jobs.

Civil Development Group, LLC
Los Angeles Civil Engineering specializing in Hillside Grading

http://civildevelopmentgroup.com

http://civildevelopmentgroup.com/blog

 

[Jambruins]

I want to stamp the plans so I can make more money. My company has to pay an engineer to produce plans so I might as well be the engineer that they pay. It would also save my company money as they could pay me less than the other engineer.

 

[ajack1]

I assume the reason you can do it cheaper than the other engineer is because he has to pay for insurance and other essentials for running a business.

It really annoys me when people start undercutting legitimate businesses and then whinging about how much it costs to run a legitimate business.

 

[Ron]

Jambruins....using you as an engineer to sign/seal plans on behalf of the company involves more than insurance. I'm assuming you are the only licensed engineer in the company.

First, in your state, the COMPANY must have a certificate of authorization to practice engineering. In order to get the CA, a qualifying engineer is required. In this case that would be you or another licensed engineer employed by the company. Most often, that person is also required to be an officer of the company.

Then your company needs professional liability insurance, which, if they are not an engineering entity, they probably do not have. Just adding you to their general liability policy does not protect you or the company for your professional errors or omissions, when acting in the capacity of a licensed engineer.

If the company does not want to jump through those hoops, your choice is to acquire your own insurance (which might not be that expensive) and have the company reimburse you for the insurance cost and compensate you for the engineering work as a subcontractor. If you do this...get it in writing and get a valid contract for your services.

Ron

 

[Jambruins]

Ron, thanks for the info. It looks like the only way for me to do this is to get my own insurance but it will cost me about $5000 for professional liability and the amount of engineering work I would do would not result in me making more than that.

ajack1, I am not looking to undercut any other business. I was looking to save my company money which would hopefully result in me making more money. I was wondering if there was a legitimate/legal way for me to be covered under their insurance. If there is not (and it sounds like there is not) a legitimate/legal way then I would get the insurance myself if I was to do the work. I am not trying to be a hack here.

Thanks for the help everyone.

 

[Jambruins]

What if I just did the stormwater/spill prevention reports and site plans. Would I still need the professional liability?

 

[Ron]

Jambruins...YES! Environmental protection is a relatively high liability area of practice.

 

[photoengineer]

Insurance is a personal decision on the engineer's part. It's not required unless your customer wants it.

Some people (rightly) go without insurance because they feel that it makes them a larger target. Others will take the chance that nothing bad will happen or chose low risk activities.

Others form LLC corporations and do the work as part of the corporation, and then dissolve the company if a problem arises in the future.

All are legimete tactics, but you have to decide what you want.


Cedar Bluff Engineering

http://cedarbluffengineering.webs.com