Mechanical Engineering Insurance

The business insurance policy will provide cover for claims including:

Alleged negligent advice

You have worked on cost-efficiency project for your client, but you have overlooked key points that needed to be considered. This has resulted in your client incurring additional financial costs than they were paying before. As a result, the client pursues a legal claim against you for the increased costs incurred. Professional Indemnity insurance would cover you in this instance.

Design errors

You produce a design for some engineering machinery, but your designs have been incorrectly calculated, rendering the resulting machinery unfit for purpose. Your client takes legal action against you for to costs of correcting your mistake and potentially for the business interruption costs. Professional Indemnity insurance would provide cover in this instance.

Breach of contract

A breach of contract can include you missing an agreed deadline for delivery of an engineering project you are contracted for, or it can be that for some reason you are unable to fulfil an agreed contract and need to terminate the contract early. Professional Indemnity insurance would provide cover for this in the event your client made a claim against you.

You cause an accident while working onsite

You are contracted to work onsite for a client. Your laptop cable is exposed and causes a member of staff to trip and fall, resulting in a wrist injury. A claim is made against you for causing the accident and to pursue damages for loss of earnings for the employee as the injury meant they could not work. This instance you would be covered by Public Liability insurance.

With Caunce O’Hara’s intuitive online quote and buy system you can get an indicative quotation for your engineering contractor insurance in a matter of minutes.

As an example: a mechanical engineer with an annual turnover of up to £50,000, who needs Professional Indemnity insurance with an indemnity of £500,000 of cover (in any one claim) would pay as little as £192.00 per year. That’s only £16.00 per month, which we think represents good value considering the level of cover and peace of mind that you gain.

Apart from Professional Indemnity insurance, engineering contractors will likely be asked to ensure they carry Public Liability insurance as part of their contractual obligations to protect the clients’ property and members of staff.

It is also important to note that as a self-employed business owner, a claim can be made against you personally with unlimited personal liability, therefore Directors and Officers insurance is a valuable insurance policy which will cover you in this instance.

Legal Expenses insurance will provide cover for costs incurred from a legal occurrence or claim that your indemnity and liability insurance does not cover, including the costs incurred from an IR35 tax investigation.