Whether it’s an office, apartment complex, skyscraper, or house, the first step toward building any of these structures is obtaining a plan from an architect. While design and beauty are often what get the most attention, how you get the work done and the functionality of a structure are even more important and potentially risky. These details impact the cost of the building, when a client can move in, and the day-to-day activities of occupants, as well as their health and safety. If a design decision or mistake leads to harm or damage, the architect could be held responsible. Architect insurance is an essential way to provide protection against such scenarios.

In this guide, we will provide information about architect insurance costs to help you make the best decision about your own policy.

We’ll Cover

• How much does architect insurance cost?
• What is architect insurance?
• What does architect insurance cover?
• What does architect insurance not cover?
• Benefits and risks
• Tips for buying
• FAQ
• Summary
• All types of insurance you may need

How Much Does Architect Insurance Cost?

Architect insurance cost varies by provider and depends on your coverage, risks, safety procedures, contracts type used, and experience. Premium prices for typical policies are as follows:

Most providers offer customized policies with additional insurance to cover your company’s particular risks.

What Is Architect Insurance?

Architects face a number of risks at each stage of a project. First you are contracted to design a structure with certain specifications. In addition to client approval, you have certain coding and other regulations to follow. After everyone signs off on a plan, you then move to construction and employ subcontractors to actually get it built. You have to make sure it’s done well, safely, on budget, and within deadlines. Eventually the building is complete, but potential liabilities don’t end there. Your firm could be responsible if your design causes something to break down, malfunction, or be injured. Architect insurance will cover you for damages and lawsuits during the entire process.

What Does Architect Insurance Cover?

There are any number of things that can go wrong for an architect while designing and building a property. Your equipment could get stolen, someone could be injured on a construction site, a faulty design could result in damage or injury, or you could go over budget and be stuck with paying the overages. Standard architect insurance policies typically cover liabilities from such scenarios and others, including:

• Third party injury
• Third party property damage
• Personal injury
• Product/completed operations
• Professional negligence and errors
• Retroactive claims from previously contracted work
• Subcontractor errors
• Natural disasters
• Equipment breakdown
• Equipment theft
• Revenue loss
• Construction costs

What Does Architect Insurance Not Cover?

Despite the wide-ranging potential damages you are protected against with standard policies, there are a number of common risks that are not covered and require specialized insurance. They can include:

• Employee medical costs and lost wages
• Automobile accidents
• Loss or damage to property while in transit or offsite

Your coverage will depend on the package you choose. Review your policy to understand your protection and add policies to fill in any gaps.

Benefits and Risks

Architect insurance offers various benefits to cover risks, including:

• Client security and requirements: Having architect insurance is an indication you operate a legitimate firm that can handle big projects. Additionally, clients may only be willing to award contracts to architects with adequate coverage.
• Cover legal expenses: If a client or third party sues you, you are protected from the costs of fighting lawsuits and the damage if you are found liable.
• Peace of mind: ​Knowing that your business is covered in the event of an unexpected occurrence gives peace of mind to you and your employees and allows them to focus on their work without fear.

Tips for Buying

When considering architect insurance costs, keep the following in mind before making your decision:

• Work with an independent agent: An independent insurance agent will help direct you toward providers that have the most experience working with architects and related fields.
• Bundle policies: Companies will often provide discounted rates when you combine certain key coverages. A common one is a business owner policy (BOP) that includes general liability and commercial property coverage.
• Identify your risks: Be sure to thoroughly analyze your firm, considering your clients, employees, subcontractors, and methods, to know all potential risks. After that, you can include all the applicable coverages.

FAQ

Do I need workers’ compensation coverage?
Depending on your location and your number of employees, you may be legally required to obtain workers’ compensation coverage. Additionally, while office work is unlikely to result in injuries, random accidents do occur, and you or your employees may be required to visit potentially hazardous construction sites and manufacturing facilities.

What is design and build coverage?
Coverage for “design and build” describes a policy that protects each stage in a contract including the entire process of planning and constructing a building.

How can I reduce my liability risk?
One of the biggest risks for an architect is a dissatisfied client. The best way to reduce this potential liability is by managing their expectations through open communication and documenting all actions taken throughout the project.

Summary

Architect insurance protects your company against potential financial ruin from lawsuits related to your businesses activities. Anything from a missed deadline, to going over budget, to a faulty design can result in damages and cause a client to sue.

By understanding architect insurance costs and determining your needs, you can feel secure that your firm is safe and can handle any project, no matter the size.

All Types of Insurance You May Need