Engineers Are Easy Targets For Frivolous Lawsuits

Any fool with $250 and a typewriter can sue anybody. In my own practice I have seen a structural engineer sued over building envelope defects, a mechanical engineer sued over structural defects, and an architect sued over mechanical defects. A contractor often has no money and insurance will not cover workmanship defects, so the plaintiff will try to place liability on insured "deep pockets" defendants, like engineers and architects.

Design professionals cannot control whether they are sued, but they can control their exposure and outcome by managing risks from the outset. Wherever possible, an engagement letter should define a monetary limit to exposure and limit the types of claims. The monetary limit should be no higher than the policy limit for a single claim under your liability insurance. As well, you should always exclude liability for "consequential damages", such as loss of profits expected from a delayed project. Damages of this kind can break your company.