Insurance for Architects and Engineers

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You are a professional when it comes to designing and building projects from scratch involving a great eye for detail and working to demanding deadlines. With such a great deal of responsibility comes a great level a risk, one which isn’t worth taking without having appropriate insurance in place.

With more and more design-build projects taking place in the US, there is an increased demand for architects and engineers to work on projects, making the need for insurance in these professions more important than ever.

Let’s take a look at some of the key areas and things architects and engineers need to know about business insurance and engineering insurance.

What does insurance for architects and engineers mean?

Architects and engineers are two professions which are at a high-risk of having a claim made against them. The projects you are usually involved with entail a high-level of accuracy, not just with drawing up the plans, but meeting the expectations of your client and making budget. There are many risks that these professions face, and that’s why understanding insurance is pivotal to keeping your business safeguarded for the long-haul.

So what exactly does insurance mean for architects and engineers?

Having the appropriate kinds of insurance policies in place, provides financial support and protection to you and your businesses reputation if a claim were to occur. A claim can happen very easily, no matter how much pride and care you take in your work. An example is from something a simple administration error to a major fault in your design plans, both are enough for a client to lodge a claim against you.

Insurance may also be a pre-requisite before you can undertake certain jobs, with contracts outlining the specific types of insurance and the limits of the policy you must have in place before pen hits the paper.

There are also many different kinds of business insurance available, each tailored to cover specific risks which you may face in your profession. Within these different types of insurance are different coverage levels, limits, and exclusions, all things which need you need to consider before taking out your policy.

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What does insurance for architects and engineers cover?

Each and every profession is different, faced with their own unique risks. To make things a bit easier we’ve narrowed down some of the typical types of insurance policies architects and engineers need to consider when protecting your business.

Professional Liability insurance

Your clients seek out your expert advice on all things design, from small scale residential plans to sports stadiums, the creative design possibilities are endless. Unfortunately, if a client believes you have been negligent in your role, a long and costly claim against your business can take place, something no architect or engineer wants to live with.

Sometimes referred to as E&O insurance, Professional Liability insurance for engineers protects your business against claims of negligence, misrepresentation or mistake. A client may make an allegation that your architect or engineering expert services, products or employees caused some kind of financial damage to a third party. Whether you are at fault or not, the time and cost involved with litigation can take a toll on your business and have an impact on your business’ reputation.

The purpose of Professional Liability insurance is to protect you from devastating financial damages which may result from alleged negligence or an error in the delivery of your services.

Coverage is provided for:

Attorney fees and other legal expenses
Costs and expenses related to a settlement
Costs and expenses related to a judgment

It is also important to extend the life of your policy beyond the completion date of your projects, as a lot of claims can occur long after construction has been completed.

General Liability insurance

A typical type of insurance taken out by professionals in the construction industry, General Liability insurance can protect your business against bodily injury or property damage lawsuits from outside parties.

Regardless if an accident is your fault or not, if the accusation is true or false, you can experience peace of mind knowing that you are protected with General Liability insurance. The coverage may help protect you architect or engineering business against claims covered by paying the defence costs and any damages up to the selected limit of your policy.

Business Owners Policy

The Business Owner’ Policy (BOP) is a packaged insurance solution designed to protect your architect or engineering business against the typical risks it may be faced with each day. The BOP product can be tailored from a selection of various different types of coverages to suit the specific requirements of your architect or engineering business.

The types of insurances included with the BOP product can be different but usually include the standard types of insurance coverages to protect against things like property damage, business interruption and liability. The attractive feature of the BOP product is how it can be customized to suit what your business needs protection from the most.

Workers compensation insurance

Not only are you busy managing the needs of your clients, but you also need to consider protecting your employees if something were to go wrong. This is where Workers Compensation insurance comes into play.

It is sometimes referred to as workman’s comp or workers comp, this type of coverage provides protection for your employees if they were to suffer a work-related illness or injury.

These are some examples of the benefits a workers compensation insurance provides to your employees when they make a claim against your workplace for injury or illness include:

Medical care
Replacement of lost wages when taking time off to recover
Funeral costs paid for if they were to pass away
Disability support costs

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