By Sarah A. Johnson, Esq.
One of the purposes of creating a corporate entity is to limit the liability of those individuals involved with the corporation. Engineers often believe the professional corporation will protect them from liability, in other words, the corporation is liable, not the individual. Unfortunately, that is not always the case.
There has been an increase in the number of licensing proceedings being pursued against engineers. If you receive any correspondence from your local or state licensing board, you should immediately provide notice of the licensing proceeding to Underwriters via Pearl Insurance for coverage under your Professional Liability Insurance Policy. Your ASCE Policy may include Licensing Board Proceeding coverage. Unfortunately, many engineers fail to realize that they have purchased this coverage or, alternatively, that this coverage is triggered when the engineer first receives correspondence from the licensing board initiating any investigation.