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Adopted: January 2006
In today's professional practice environment, both employers and engineering employees are concerned about professional liability, risk management and loss prevention. Many firms carry professional liability insurance and/or use specific methods to transfer or mitigate professional liability risk exposure for the firm and their employees.
NSPE encourages individual employed engineers and their companies to work in harmony to minimize professional liability risk exposure consistent with good professional practice and sound business judgment.
It is the position of the National Society of Professional Engineers that, consistent with good professional practice and sound business judgment, engineer employers provide their employed engineers with appropriate written information relating the availability and extent of professional liability and other applicable insurance, as well as employee indemnification/ limitation of liability provisions and other mechanism that are in place to address professional liability exposure incurred by their employees within the scope of their employment. This includes providing information in employee handbooks, employment agreements, and also providing periodic risk management seminars and other loss prevention programs. Insurance is not the only way to protect the firm and employees, however, companies that do not carry professional liability insurance should disclose that fact in writing to their employed engineers.