Insurance for Architects and Engineers

Posted on February 19, 2018 by CoverWallet in Business Compliance.

As an engineer or architect, your everyday responsibilities involve design and ensuring that your work product will perform correctly. You create what may not have existed before, you solve problems, and you maintain elaborate tools. With so much attention focused on the details, it is easy to see why you may lose track of that one cog in your business machinery that helps it to run: insurance.

There are many reasons to have insurance, but you’ll find that most clients will make it a requirement in the job contract. Above all, it protects you and your business in the case of incidents, which can be crucial when you work independently. While there are many types of insurance, the following are the most important in your field:

General Liability

General Liability is the baseline for all business insurance. No matter what industry you are in, it is a must-have. Typically with engineers and architects, having this type of insurance is in your contract because if you’re interacting with clients face to face (at their place of work or at yours) you risk the chance of them getting injured, which could lead to a lawsuit. This type of coverage offers protection against any third-party lawsuits arising from bodily injury, property damage (caused by you or an employee), rental property damage, financial loss, etc.

Professional Liability (Errors & Omissions)

When you’re designing a product or making professional recommendations for a business, there is a chance that something could go wrong, which may lead to a lawsuit. Professional liability insurance will protect you and your company against any claims made by a client regarding negligence, and will cover defense costs and settlement payments (up to policy limits) for any allegation that your work or advice was inadequate. While not a contractual obligation, this coverage protects you and your company from any damage perceived to result from your services.

Workers’ Compensation

Being an architect or an engineer, you’re not likely to face any physical threats in your office, so you may not think there is a need, but in most states workers’ compensation insurance is a requirement for businesses with one or more employees. It will cover any injury that occurs at the workplace or at any location where the employee is acting in the “course and scope” of employment. With that being said, having workers’ compensation may be a wise purchase, given that it will help cover all medical expenses and loss of wages.

Several other types of insurance can be useful to engineers and architects; contracts necessitate some, and some are beneficial for your day to day operations. To further discuss the coverage that best protects your business, contact CoverWallet. We will make sure that your actions, services, and company as a whole have protection against any of the perils that can stop your perfectly oiled machine from running at peak performance!

CoverWallet is an online business insurance platform that provides the easiest way to understand, buy, and manage insurance for your business. They provide free assessment tools to find out exactly what insurance your business needs, an abbreviated online application, and the ability to purchase and manage your insurance, all in one place.

At Harbor Compliance, we handle all aspects of compliance for architecture and engineering firms as well as a full range of businesses. If you would like help with any other aspects of compliance, from forming a business to registering in new states to licensing your firm, we’re eager to help. You can talk directly to one of our compliance specialists, 1-888-995-5895, or contact us with your questions.