November 2009

Permit Holders are Required to Carry Professional Liability Insurance

A feature of the Engineers and Geoscientists Act 2008 is the inclusion of the mandatory requirement for PEGNL Permit Holders to carry professional liability insurance. 

While this provision of the Act is primarily intended to provide protection to the public and clients of the permit holders, the PEGNL Board of Directors believes that it will also provide protection to permit holders who have not previously had professional liability insurance.

The Act in section 12 (3) mandates that a Permit Holder provide proof to PEGNL that he or she has obtained professional liability insurance in a form and amount satisfactory to the PEGNL Board of Directors. Therefore, in order to renew a permit for 2010 or to receive a new permit, a permit holder must provide a certificate of insurance together with his/her application. 

PEGNL By-Law #2 details the Board’s requirements for the content of the proof of professional liability insurance; however, in summary the insurance certificate must include:

• The amount of insurance coverage. [The minimum required coverage is $250,000 per claim and $500,000 in the aggregate.]

• The term of the insurance policy.

• A statement from the insurer confirming that the PEGNL Registrar will be notified by the insurer should the insurance policy expire or be cancelled.

By-Law #2 can be reviewed on the PEGNL website at www.pegnl.ca

All PEGNL Permit Holders will receive notice of this requirement with the invoices for the 2010 renewal of their permit.

© Professional Engineers and Geoscientists of Newfoundland and Labrador