Supervising engineers play a critical and highly sensitive role in the design, calculation, and execution of construction projects. Even years after a building is completed, if an unexpected incident occurs, the supervising engineer may still be held legally responsible.

By purchasing Professional Liability Insurance for Supervising Engineers, these professionals are protected against financial and bodily injury claims made by property owners, third parties, and construction workers involved in the project.

Core Coverages of Engineers’ Professional Liability Insurance

The main coverages provided under this policy include:

Death Compensation (Legal Blood Money)

The amount of compensation for death is determined by judicial authorities, and the insurer is obligated to pay up to the policy limits. If the final court ruling is delayed and the official compensation rate increases in the meantime, insurers typically do not cover the additional difference unless purchased as an optional extension.

Permanent Disability Compensation

Compensation for permanent disability is determined by legal authorities. The insurer will reimburse the amount up to the limits defined in the policy.

Medical Expenses

Based on valid medical documents and confirmation from the insurer’s appointed physician and expert, medical expenses for injured parties will be covered up to the policy limits.
If any medical payments are made before the court issues its final decision, such amounts will be deducted from the total payable compensation.
Additionally, if the injured party is covered by Social Security or similar organizations, the insurer covers the difference beyond what those organizations pay, up to the policy limits.

Property Damage

Compensation for property damage arising from the engineer’s negligence is determined by judicial authorities.
If agreed upon when the policy is issued, legal defense and court costs will also be covered in cases where the policyholder is eventually acquitted.

What Is Not Covered?

The following losses are not covered under Professional Liability Insurance for Supervising, Designing, Calculating, Consulting, or Executing Engineers:

• Losses directly or indirectly caused by radioactive contamination or nuclear explosions

• Losses arising from war, strikes, riots, terrorism, or civil unrest

• Damages caused intentionally (based on rulings by the competent legal authority)

• Losses resulting from criminal activities by the policyholder

• Monetary penalties, fines, or government-imposed charges

• Damage to the policyholder’s own property

• Natural disasters (earthquakes, floods, lightning, storms, etc.) unless purchased as additional coverage

• Loss of profit or business interruption

• Liabilities belonging to property owners or contractors

• Fines or penalties imposed by municipalities or governmental bodies

• Lack of a valid professional practice license at the time of the incident

• Additional compensation due to delays in legal determinations, unless related coverages are purchased