It is often assumed that if your employer holds professional liability insurance, there is no need for you, as an individual employee, to carry your own insurance. This may not be a correct assumption since there are some circumstances where you might not be covered by your employer's insurance. It is possible that your company's client may name you directly in a law suit and, depending on the specifics of the company's professional liability policy, the company's policy may not respond and provide coverage for you especially if negligence is alleged. In addition, it is possible that an employer could seek reimbursement from an employee whose negligent act resulted in financial damages. It never hurts to ask your employer about the company's insurance policy and your place in it.
Even when "off the job", you can still be held to the same professional standard expected of you in the regular course of your employment . Example: You help a "friend of a friend" with a weekend project. Should things go wrong, and your "friend's friend" be out of pocket, they could sue you for not performing to the level expected of your professional designation. Your employer's insurance won't cover it.
In providing services to an engineering or construction firm, or directly to a consumer, any real or perceived errors or omissions may lead to a claim against you. Regardless of the validity of the claim, you will still be responsible for defending yourself. Defence costs may be significant and could impact your personal wealth. Example: You sign off on a project, but somehow things go wrong and there are costly delays and/or repairs. The firm or the firm's client may try to collect any additional expenses incurred from you. Other common activities that can lead to legal costs include home inspections and drawing errors.
All professions have an expectation for standards of performance which creates a risk of legal action if the professional standard is not met. Some professions such as lawyers, accountants, doctors, financial advisors and engineers have mandatory insurance coverage requirements for their members which are important to build the trust and confidence of the government and the public. Both the public and the government will be more inclined to deal with professions, and businesses within those professions, that are adequately insured. While there is no such insurance coverage requirement for engineering technicians and technologists, providing a minimal level of appropriate insurance coverage to all members could raise the perception of the profession, provide appropriate security to members and could well result in increased business for the profession.