# Malpractice insurance for a PE. Where to get who pays for it?



## rafsan06 (Jun 3, 2021)

Hi,
I just passed the PE exam and in the processes of getting licensed now. I am working for a company and would be stamping for them exclusively. In these cases who pays for the Insurance? What is the norm?
Also, what are the places one can get those insurances? How much they cost typically? 

I am totally new to these things and was my 100% focus was on passing the exam. Any information regarding setting up as a PE would be great...

Thanks


----------



## john813_PE (Jun 3, 2021)

I know I'm covered under my companies insurance. Boss added me in and that was that. Sorry, not too much help here other than the company pays the insurance.

Have you asked your employer about this yet? Or do you want more info before going to them in case you want to negotiate?


----------



## DoctorWho-PE (Jun 3, 2021)

The professional liability insurance is handled by my company as well.


----------



## rafsan06 (Jun 3, 2021)

john813_PE said:


> I know I'm covered under my companies insurance. Boss added me in and that was that. Sorry, not too much help here other than the company pays the insurance.
> 
> Have you asked your employer about this yet? Or do you want more info before going to them in case you want to negotiate?


I have not talked with them. They know i just passed the PE and they are preparing to negotiate the terms. So, i was trying to familiarize myself with what is the norm and what to expect.


----------



## rafsan06 (Jun 3, 2021)

vhab49_PE said:


> The professional liability insurance is handled by my company as well.


This is what I am getting by searching the internet too. Let's see if my company says something different.


----------



## youngmotivatedengineer (Jun 3, 2021)

You would be added to the companies insurance policy. If the company makes you take out your own policy, you might as well just work for yourself and keep all the profits.


----------



## NJHHEngineer P.E. (Jun 4, 2021)

youngmotivatedengineer said:


> You would be added to the companies insurance policy. If the company makes you take out your own policy, you might as well just work for yourself and keep all the profits.


^^that.


----------



## Reverse Polish (Jun 4, 2021)

My company also pays for professional liability insurance. Be forewarned that in some states, you are also personally liable for your work product when you apply your engineering seal.


----------



## Sactomacto (Jun 4, 2021)

If I’m not mistaken, the insurance is called E&O (Errors and Omissions) Insurance and it typically costs a couple thousand a year. Google E&O insurance...


----------



## Edgy Cheesy Graphite PE (Jun 4, 2021)

Yes, as other have said, your company should cover the cost. But you should verify that they added your name to their policy before you start stamping anything.

Also this is probably obvious, but that policy only covers work done for them. If you do any moonlighting then you need to get your own policy.

Also correctly said, it's errors and omission insurance. I believe that the insurance that applies to all "knowledge-only" consultants, i.e. you're not doing/building/touching anything. You're only providing an intellectual product. So engineers, accountants, business consultants, etc.


----------



## rafsan06 (Jun 7, 2021)

Thank You Guys. Just found out that my company has insurance and they will add me to it....


----------



## kwyjibo (Jul 8, 2021)

rafsan06 said:


> Thank You Guys. Just found out that my company has insurance and they will add me to it....



I'd go one step further and get a copy of the policy declarations if possible. 

When I worked for a state agency it wasn't such a big deal as the agency itself was self insured but when I went private I made it a point that if I was sealing docs I wanted to know who the insurance carrier was, the limits on the policy, and the expiration date of said policy since the work was being done in multiple states. 

Not saying I don't trust the employer when they say "you're covered", but I needed a copy of the declarations page for my piece of mind.


----------



## FireT (Jul 9, 2021)

kwyjibo said:


> I'd go one step further and get a copy of the policy declarations if possible.
> 
> When I worked for a state agency it wasn't such a big deal as the agency itself was self insured but when I went private I made it a point that if I was sealing docs I wanted to know who the insurance carrier was, the limits on the policy, and the expiration date of said policy since the work was being done in multiple states.
> 
> Not saying I don't trust the employer when they say "you're covered", but I needed a copy of the declarations page for my piece of mind.


Bingo. Someone understands insurance right here.


----------



## Joe2 (Aug 7, 2021)

Little late, but I’m running a company and am PE in TX.

what you want is called the master cert, generally new (public clients) ask to see it and sometimes want to be added to it. They want to make sure they’re covered and there’s a pile of cash if you screw up. I pay about 3k per year for the minimums.

basically it’s worse than your own health insurance and it’s options on options but public contracts tend to dictate required options and limits.

from memory, the big ones are:
E&O (Errors and Ommissions, also called professional liability)
General liability 
Workers comp

then there’s:
Umbrella
Automotive 
Cyber security 
Sexual harassment


----------



## Joe2 (Aug 7, 2021)

I find it funny that insurance for the business is cheaper than an individual’s health insurance…


----------

