Sole Prop with liability questions

[engineernh]

What is the name of your state (only U.S. law)? NH

I have been a consulting civil engineer operating as a sole proprietor for the past 5 years. I create roadway and drainage design plans for subdivisions for private developers. I do not carry errors and omissions insurance or liability insurance of any kind. I am now considering leaving the industry to pursue another career. If I form an LLC now, does that afford me any protection from lawsuits that may arise from my past projects? Is there a limit for how long liability for errors and omissions on design plans lasts, ie: at time limit for when I can no longer be pursued for liability? Do I need to carry insurance "til the day I die?"

Thank you for your wonderful service!

 

[tranquility]

No. The person who was in privity with the client when any potential negligence arose was you and not the LLC.

 

[GaAtty]

GaAtty

Forming the LLC now will not protect for past acts done before the creation of the LLC. You will have to check with an attorney in your state for the statute of limitations, as these vary by state. Also, there are more than one type of claim that you could be sued under, and the different types of claims all may have different statutes of limitation. However, nothing will have a statute of limitations that will last your lifetime, so at some point you can relax.

 

[tranquility]

Much civil engineer work of the type mentioned seems more of a statute of repose limitation than a statute of limitations limitation.