Professional liability insurance for engineers, explained
What your E&O policy actually covers, and how member discounts can reduce your annual premium by up to 20%.
What E&O insurance actually does
Professional liability — also called errors and omissions (E&O) insurance — protects your firm when a client claims a design or calculation error caused a financial loss. It is distinct from general liability, which covers bodily injury and property damage on a jobsite.
What it typically covers
- Legal defense costs, even if a claim is baseless.
- Settlements and judgments up to your policy limit.
- Project rework stemming from a covered error.
- Subconsultant errors in some policy structures.
What it usually excludes
- Intentional or fraudulent acts.
- Bodily injury and property damage (that is general liability).
- Pollution and asbestos, unless explicitly endorsed.
How premiums are set
Insurers weigh firm revenue, project types, claims history, and your state's legal environment. Structural engineers carrying higher-risk project profiles naturally pay more — but the spread between carriers for the same firm can exceed 20%.
Where member discounts help
ProRewards partners with carriers who understand AEC practice. Member rates typically reduce annual premium by up to 20%, with no reduction in coverage. When you renew, request a member-rated quote alongside your incumbent's renewal — the savings often appear in the first year and compound every renewal after.