Position Statement:  It is the position of the National Society of Professional Engineers that, consistent with good professional practice and sound business judgment, employers of engineers provide their engineers with clear written information describing the availability and extent of professional liability and other applicable insurance coverages afforded by their employment in addition to appropriate training upon liability allocation and mitigation.  If engineer employers do not carry professional liability insurance NSPE recommends that such companies should disclose that fact in writing to their engineers.

Background:  In today's professional practice environment, both employers and engineering employees are concerned about professional liability, risk management, and loss prevention.  Many firms carry and maintain professional liability insurance policies and/or use specific methods to transfer or mitigate professional liability risk exposure.

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.

Training related to indemnification and defense issues, as well as limitation of liability contract provisions and other mechanisms that address professional liability exposures that may be incurred by their employees within the scope of their employment is critical to both engineers and employers and is encouraged.  The specific training and methods described above may include the provision of information in employee handbooks, employment agreements, and, equally important, as part of periodic continuing education programs that include risk management seminars and other loss prevention programs.