Engineers serve as the first-contacted, and often most important, professionals in most construction projects. The client will come in with their proposal and you will have to figure out how to actually get it done. That means determining the feasibility, and if there are issues you have to come up with the solutions. That is where some of the biggest risks come into play. If there was something wrong with your plan that leads to delays, ends up costing your clients more money, or causes property damage or even injuries, you could be held responsible. The best way to protect yourself is with a comprehensive engineer insurance policy.

Our goal with this guide is to give you all the information you need about engineer insurance cost to give you confidence in your search for the right insurance coverage for your company.

We Cover in This Guide

• How much does engineer insurance cost?

• What is engineer insurance?

• What does engineer insurance cover/not cover?

• Benefits and risks

• Tips for buying

• Types of insurance you may need

• FAQ

• Summary

How Much Does Engineer Insurance Cost?

Engineer insurance cost ranges from $39 to $289 per month depending on your provider, coverage, limits, location, size, sales, number of employees, specialty, and claims history. The following are some common policy examples that cover the needs of most engineering firms.

- Basic coverage (Essential protection for your needs): $39 per month for general liability insurance

- Standard coverage (Basic plus protection for your professional errors): $89 per month for general liability insurance + professional liability insurance

- Professional coverage (Standard plus protection for your business assets): $289 per month for general liability insurance + professional liability insurance + commercial property insurance

What is Engineer Insurance?

Engineer insurance is coverage designed for the specific risks faced by engineers and those who own engineering firms. In addition to pleasing your client, you have to make sure that whatever you are designing will function and meet basic safety and institutional standards. Despite your best efforts, there are plenty of things that can go wrong, both within and outside of your control. These can range from the serious, like making an error leading to a malfunctioning plumbing system that causes considerable damage, to the less serious like focusing on safety over aesthetics and displeasing a client. If you are ever sued for a situation like this or some other covered scenario, you will be very thankful for your engineer insurance coverage.

What Does Engineer Insurance Cover/Not Cover?

In addition to the major risks directly related to your engineering work, there are plenty of other potential liabilities you may encounter from simply operating out of an office and visiting different job sites. These can include clients or third parties tripping over a piece of equipment you left out at a building, damaging a car while performing your work at a job site, or simply a potential client slipping while visiting your office. Most of these scenarios and others that fall into the following categories are covered under most engineer insurance policies.

• Third-party bodily injury

• Third-party property damage

• Personal injury

• Products/completed operations

• Professional negligence, mistakes, and errors

• Claims from old work

• Errors and mistakes made by people you hire

• Damage and harm to your own property, equipment, and other assets from covered scenarios

• Broken equipment

• Lost revenue

• The costs of repairing property, equipment, or other assets

While these policies cover many of the risks you may face, some are not included and will require the purchase of additional insurance. They can include:

• Employee illness and injury

• Claims related to business-owned vehicle accidents

• Damages and losses as a result of hacking or other cyber crimes

Benefits and Risks

Engineer insurance offers plenty of benefits to cover the risks involved in the industry. The following are some examples:

• Peace of mind:Knowing that your business is covered in case something happens will allow you and your employees to focus on each individual project without being overly preoccupied with the worst-case scenario.

• Protecting business assets: Accidents within and outside of your control can potentially destroy your business. Engineer insurance will cover these liabilities.

• Cover legal expensesA lawsuit is one of the most difficult and potentially damaging situations your firm can face. If someone sues you, insurance protects you from the costs of the legal fight and the damages if you are found liable.

Tips for Buying

Engineer insurance costs can be complicated. The following are some suggestions to help with your deliberation process and may potentially save you some money.

• Work with an independent agent: An independent insurance agent will help direct you toward insurers with the best rates and the most experience covering engineers and related fields.

• Identify your risks: You should analyze your firm, considering the types of projects you work on, your employees, and clients, to identify potential risks.

• Compare quotes: Premiums tend to vary between insurance providers. Take a look at at least three quotes to find the best rates and coverage.

Types of Insurance You May Need

• General Liability Insurance: Protects you against third-party claims of property damage, personal injury, bodily injury, and other related scenarios.

• Commercial Property Insurance: Covers your company’s property, assets, and equipment from damage, theft, or breakdown, and will replace lost revenue.

• Commercial Auto Insurance: Protects you from property damage and other liabilities resulting from accidents involving business-owned vehicles.

• Workers’ Compensation Insurance: Covers medical costs and lost wages for employee illness and injury.

• Professional Liability InsuranceCoverage designed to protect your business against client claims of harm, damage, or loss as a result of your engineering services.

• Cyber Liability Insurance:Protects your business from liabilities, damages, and losses related to data breaches and other cyber attacks.

FAQ

- What’s an easy way to save money on my engineer insurance?

See if your insurer provides discounts for bundling policies. One common example is a business owner policy (BOP) which combines certain key coverages like general liability insurance and commercial property insurance.

- What are some suggestions for reducing risk?

Make sure you pay attention to recommendations for best practices for engineers. Additionally, before signing a contract, make sure you set realistic expectations with your client. This will hopefully prevent surprises as you get into the work.

- Do I need workers’ compensation insurance?

It may be mandatory depending on your location. Even if it is not it’s a great coverage option that makes your employees feel safe, and can prevent a lawsuit in the event someone gets sick or injured while on-the-job.

Summary

Engineer insurance is an essential way to protect your firm and give it a legitimate chance to succeed. You now have a good sense of engineer insurance cost and should feel confident that you will find the policy you need for all the risks your company may face.