Site icon AdvisorSmith

Business Insurance for Industrial Engineers and Engineering Firms

Insurance for Industrial Engineers

Get a quote on Business Insurance

Industrial engineers function as problem solvers, designing efficient systems that integrate various components, people, and processes. Large manufacturing companies, hospitals, theme parks, and other businesses rely on industrial engineers to make their systems as efficient as possible. Whether you are using your technical skills to increase the production of toys on an assembly line or leveraging your planning skills to create procedures that save lives in a hospital, you have the potential to make a significant impact. Though you might prefer to envision the positive effect that your work can have, mistakes are an inevitable part of life as well. An error on your part could result in harm or damage, and you may be held liable.

Simply running a business comes with its fair share of risks. Aside from the liability of professional mistakes and errors, there are other dangers to be aware of, like accidents or natural disasters. No business is risk-free. In the event that someone takes legal action against you or an unfortunate event occurs, you will be in a better position to protect your financial assets with the right business insurance coverage.

You may want to purchase business insurance if:

What insurance coverage do I need as an industrial engineer?

Most businesses share common insurance needs, which include such policies as general liability insurance and commercial property insurance. For industrial engineers, it is particularly important to obtain professional liability insurance, given the level of technical skill required for your profession and the amount of complexity in the product that you work on. Mistakes are bound to happen, and an unhappy client deciding to file a lawsuit is an all-too-common occurrence in engineering work. Below we explain some of the more common business insurance coverages that industrial engineers should consider.

Professional Liability Insurance

Industrial engineering work involves technical expertise and the ability to understand complex digital models, where one small mistake or omission could lead to the failure of a system. Because of this possibility for error, industrial engineers can be the target of lawsuits from unhappy clients. Even if you perform your job correctly, a client can still sue you if they believe your work was faulty in some way.

Professional liability insurance, also known as errors & omissions insurance, can protect you from client lawsuits that stem from the performance of your professional work. Professional liability insurance for engineers also protects your from lawsuits alleging bodily injury or property damage, unlike most other professional liability policies. This type of insurance is incredibly important for industrial engineers who, given the nature of their work, may be more susceptible to liability claims.


General Liability Insurance

General liability insurance, or commercial general liability, can protect your business from lawsuits that claim property damage or bodily injury caused by your business or your employees. This is a common coverage for all business types, as accidents can happen no matter what industry you’re in. A client visiting your office may slip and fall, or one of your employees may accidentally damage a client’s property—these sorts of events would be covered under general liability. The four types of coverage included in general liability insurance are: products & completed operations, property damage, bodily injury, and personal & advertising injury.


Workers’ Compensation Insurance

Workers’ compensation insurance provides financial benefits to employees who suffer work-related illnesses or injuries while employed by your business. In many states, businesses that have employees are required to carry workers’ compensation insurance. In exchange for accepting workers’ comp benefits, an injured employee agrees to not sue your business for the injury. Workers’ compensation insurance is no-fault, which means that it pays benefits regardless of whether the employer or employee is at fault for the injury.

Workers’ compensation can cover the costs of:


Commercial Property Insurance

Commercial property insurance helps cover the buildings that your business owns, as well as other owned property and property under your care. Similar to how property insurance works for your home, commercial property protects you if an unforeseen accident or natural disaster hits your business property, providing you with the funds that can help your company recover. Commonly covered perils include fire, lightning, explosion, windstorm, hail, theft, and vandalism.


Commercial Auto Insurance

If your firm owns or leases vehicles or your employees use their own vehicles for company purposes, commercial auto insurance is an important coverage to obtain. In the event of an accident involving your vehicles, commercial auto insurance can provide financial protection. This type of insurance has both liability and property components. The liability component protects your business if one of your workers is at fault for causing a crash and causes bodily injury or damages someone else’s vehicle or property. The property component of commercial auto insurance protects the value of your vehicle against crashes, theft, and other perils.


Business Owner’s Policy

A business owner’s policy, also known as a “BOP,” is a special bundling of policies that can provide coverage for risks that are common to small business owners. BOPs combine property, general liability, and business income and extra expense insurance coverages for qualified small businesses. Importantly, a business owner’s policy can help you save money, with lower premiums than buying the individual coverages separately.

Final Word

As an industrial engineer, it is your job to improve the processes and systems that other businesses rely on so that they can perform their work more safely and efficiently. Your work requires great attention to detail, and many of your projects may be incredibly complex. Though you may be certified and capable, even a small mistake can lead to a bigger problem for your clients, raising the potential of client lawsuits against your firm.

Your firm also faces a number of more commonplace risks and liabilities, from property damage due to a natural disaster to an employee who is physically injured on the job. Having a comprehensive business insurance plan in place can help protect you and your employees in a time of need. Not only will the right insurance provide financial security, but it will also give you and your team the peace of mind to focus on what you do best—helping to build efficient industrial systems for your clients.

Exit mobile version