Liability Insurance or Error and Omission Insurance?

Question

I wanted to know how does this policy work for me or against me in this situation:

I am currently working for a company that I am the only engineer and they bought a policy under my name and license. Now, I know I am covered as long as I am at this company but lets say I get fired or I want to leave. What happens to my liability insurance? Will it get terminated. The more important question is when I leave can a previous client sue me or the company? Would the insurance cover me (the one I had while i was working at the company)?

Towanda · Accepted Answer

Anyone can sue anybody for any reason.....I thought that error and omission insurance was for places that write contracts and there is a possibility of an error and that covers the person or company depending on how the contract is written.  Liability insurance covers your liability for exactly what the policy is written for ....and who...You need to ask those questions of your company for they are the only ones that know the specifics of the insurance.  I do know that long ago I drove a bus for a city and I got my own liability insurance to cover me being sued if the company didn't cover my A.  It wasn't expensive for about $1 mil.  It's better to be safe than sorry.

Anonymous · Answer

Are YOU the policyholder?  Or just a named insured?  Who paid for the policy?

The policyholder can CANCEL the policy, if you leave.

Since you didn't BUY the insurance, you have no reasonable expectation of keeping the insurance for your own use, once you leave.  You'll be buying your OWN liability and E&O coverage.  

Odds are, if you leave, they'll hire another engineer, and change the name of the covered engineer to the new guy.

Liability Insurance or Error and Omission Insurance?

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