Employed Engineer:
Is he covered by contractors' insurance or required to have professional liability insurance?

In a Contractors’ All Risks policy, a salaried engineer is included like the rest of the company’s employees; however, the coverage is limited to physical damage to the project only and does not constitute professional liability coverage. In other words, the policy does not cover professional negligence in roles such as project manager, supervisor, or design and engineering consulting errors.

Professional liability coverage for a salaried engineer can be extended under the firm’s professional liability policy. At the same time, it is important to ensure that:

• The firm has a valid professional liability policy in force

• The limits of liability are appropriate to the scope of activity

Please note: in cases where the engineer operates outside the framework of the company or provides services independently, a personal professional liability insurance policy is required.