Why is insurance a must for engineers?
Developing and designing projects can be fulfilling, but it also comes with risks. Even the most experienced engineers can make a mistake that could delay a project or cause financial loss. Engineering insurance offers peace of mind by providing protection against client lawsuits, injuries, and more.
Get the right insurance
6 insurance policies every engineer should consider
These insurance products protect against the most common risks and liabilities in the engineering industry.
Professional liability insurance
Professional liability coverage handles lawsuits related to professional negligence, such as a project delay. It's also referred to as errors and omissions insurance or E&O insurance.
- Missed deadlines
- Breach of contract
- Design errors and oversights
General liability insurance
A general liability insurance policy defends against third-party lawsuits, such as a client who slips on your office's wet floor and injures themselves. It's often required for a commercial lease.
- Client bodily injuries
- Accidental damage to a client's property
- Defamation and copyright infringement lawsuits
Business owner's policy
A business owner's policy (BOP) combines commercial general liability coverage and commercial property insurance at a discount. Small, low-risk engineering firms are often eligible for this bundle.
- Slip-and-fall injuries
- Defense costs from client property damage
- Business property damage
Workers' comp insurance
Workers' compensation insurance protects engineering companies and sole proprietors from work-related medical bills that health insurance won't cover. Most states require this coverage for employees.
- Medical expenses from workplace injuries
- Disability benefits for injured workers
- Legal costs from work injuries
Cyber insurance
Cyber insurance helps design professionals recover from costly cyberattacks and data breaches. It's also called cyber liability insurance or cybersecurity insurance.
- Ransomware attacks
- Client notification costs
- Data breach investigations
Commercial auto insurance
Almost every state requires commercial auto insurance for vehicles owned by an engineering business. It covers costs in the event of an accident involving your business vehicle.
- Auto accident legal fees
- Vandalism or other vehicle damage
- Vehicle theft
Engineer insurance costs
From our customer data, here's a quick look at average engineer insurance costs:
General liability: $38 per month
Business owner's policy: $53 per month
Professional liability: $168 per month
Factors that insurance companies consider when underwriting your design insurance premiums include:
- Your professional services offered (civil engineering, electrical engineering, mechanical engineering, etc.)
- Number of employees
- Value of your business property
- Types of insurance products purchased
- Coverage limits and deductibles
- Claims history
Hear from business owners like you who purchased insurance coverage.
Why engineers choose TechInsurance
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Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.
Common questions about business insurance for engineers
Review answers to frequently asked questions (FAQs) about engineer business insurance coverage.
Is liability insurance required to get an engineer license?
Generally, insurance coverage isn't required in order to obtain your engineer license. However, the specifics depend on the laws in your state. Your clients might also require you to carry insurance as part of the terms of a contract.
In most states, engineers must complete the following to meet licensure requirements:
- Earn a degree accredited by the Accreditation Board for Engineering and Technology (ABET)
- Complete four years of supervised engineering experience
- Pass the Fundamentals of Engineering (FE) and Principles and Practice of Engineering (PE) exams
In addition, engineers typically have to pay an application fee and renew their license after a certain number of years have passed.
What other insurance coverage do engineers need?
A couple of additional types of business insurance policies you should consider as part of your risk management plan for complete protection include:
- Commercial umbrella insurance: Umbrella insurance covers legal expenses when the limit is reached on another liability policy, such as general liability, employer's liability insurance, or commercial auto insurance. If you're a sole proprietor, you may need this coverage to meet client requirements for higher liability limits.
- License/permit bonds: License and permit bonds act as a guarantee that your engineering firm will abide by building codes and meet industry standards in all of its work. Bonding may be required to get a license, sign a contract, or obtain a permit for a specific project.
