Architects help with different residential and commercial construction projects. They work with civil engineers in designing the overall look and functionality of a building’s interior and exterior. Wrong designs, accidents in the workplace, business income loss, and lawsuits. Many perils lurk in your work as an architect. This is why you should get architect insurance acting as a guarantee as a means to boost income. In this discussion, you will know:
The most useful types of architect business insurance
How much general liability and professional liability insurance to get
The cost of insurance for architects
Which insurance companies provide the best coverage
Professional liability insurance and general liability insurance are the most useful. The first, also known as professional indemnity insurance or errors and omissions insurance, covers professional negligence and other related lawsuits. The second takes care of bodily injury or property damage lawsuits.
Architect liability insurance isn’t required by law. There are no architect insurance requirements and all can practice their craft without getting insured. Nonetheless, it’s best if you get the minimum amount of general liability and architects PI insurance to:
Easily bid for contracts and close deals
Assure clients you have the countermeasure if something goes wrong
Gain the trust of clients
Satisfy with the requirements of mortgage and property rental or lease
So how much coverage do you need? Most who are in the real estate and other related practices get a $1 million general liability and professional insurance for architects.
Limits Of Professional Liability Insurance for Architects
| Value | |
|---|---|
| Professional liability per occurrence limit | $1 million-$2 million |
| Professional liability aggregate limit | $1 million-$2 million |
| Deductible | $0-$10,000 |
Architect professional liability insurance is always included in the tailored protection for your line of work.
This policy grants a shield when a claim is filed because you committed or allegedly committed lapses while working for a client. You’ll find architects & engineers professional liability insurance useful when:
You were conducting an inspection and failed to make corrections even if the building didn’t follow your design
Your design have significant defects and errors which costed a ton of money for the client to correct
You gave an incomplete design to a client
You failed to finish and deliver the building design on time
The client accuses you of not following certain duties and responsibilities stated in the project contract
You inflated the cost estimates in order to get commission from a partner construction contractor
Architects and engineers professional liability insurance is underwritten as a claims-made policy or occurrence policy. Everytime you face a claim for professional negligence, breach of contract, violation of good faith and fair dealing, or missed deadlines, this insurance will cover:
Settlements
Compensation for punitive damages
Defense costs such as attorney fees, investigation fees, court filing fees, etc.
Court judgments
Architects errors and omissions (E&O) insurance is offered as a stand-alone policy. However, some insurance companies underwrite this as part of their general liability insurance.
Limits of General Liability Insurance for Architects
| Value | |
|---|---|
| General liability per occurrence limit | $300,000-$2 million |
| General liability aggregate limit | $300,000-$2 million |
| Products and completed operations coverage limit | $1 million-$2 million |
| Advertising injury coverage limit | $1 million |
| Rented premises liability coverage limit | $250,000 |
| Medical payments coverage limit | $5,000-$15,000 |
| Deductible | $0-$2,500 |
Aside from architects PII insurance, you also need general liability insurance. General liability insurance is a requirement for bidding projects, renting commercial spaces, and getting a mortgage.
General liability insurance for architectural designers grants a shield when a client, independent contractor, delivery persons, and other third parties file a claim for bodily injury or property damage against you. Use this insurance when:
You hired independent carpenters for a housing project. One of them gets injured at the workplace and demands compensation
Your office’s floor has just been mopped. A client entered and slipped, resulting in a broken hip
Your design was faulty. The structure crashed and surrounding buildings got damaged, not to mention people also got injured. A claim is filed that demands you cover the aftermath of the accident
Claims for bodily injuries and property damage are expensive, and general liability insurance will take care of these costs:
Medical treatment of the injured third parties
Refunds for the damaged properties of third parties
Settlements
Defense costs
Court judgments
You get the best protection by having general liability insurance aside from architects errors and omissions insurance. These policies compliment well and cover each other’s gaps.
Your general liability insurance doesn’t only cover claims for bodily injuries. It will offer these coverages as an additional layer of protection:
Advertising Injury Coverage
General liability insurance comes with advertising injury coverage. It will protect you against copyright infringement claims.
If you’re sued for copying another architect’s work or using it without prior attributions, advertising injury coverage will cover settlements and defense costs.
Moreover, this additional coverage in general liability insurance also grants a shield against claims for slander or libel.
Products And Completed Operations Coverage
The products and completed operations coverage of general liability insurance will cover expenses if a client files a claim after you completed a project.
Rented Premises Liability Coverage
Anything that happens to a rented space falls on your shoulder. This is why general liability insurance comes with rented premises liability coverage. It will reimburse the losses of the landlord if the space you’re renting is damaged by fire.
Limits Of Commercial Property Insurance for Architects
| Value | |
|---|---|
| Building coverage limit | $110,000-$500,000 |
| Building contents coverage limit | $15,000-$200,000 |
| Outdoor installations (signs, antennas, fences, etc.) | $2,500 |
| Money and securities | $2,500 |
| Employee dishonesty coverage | $5,000 |
| Key and lock loss coverage limit | $1,000 |
Commercial property insurance protects your office and other business property.
Most insurance companies allow you to insure an office at home, a commercial condo, or dedicated building. Some are less lenient and don't offer commercial property insurance if you’re working in a home office or at a rented/leased office.
It’s easy to understand how commercial property insurance for architectural technicians work. Use this to recover losses and resume operations when the office is destroyed or damaged by:
Fire
Theft
Vandalism
Riot
Civil commotion
Malicious mischief
Sinkhole collapse
Volcanic action
Rain
Winds
Snow
Hail
Impact
Vehicle
Aircraft
Sprinkler leakage
Commercial property insurance provides automatic coverage to the contents of your office. You can use this business insurance for architects to recover losses in case distance lasers, cameras, laptops, desktops, 3D printers, HVAC, and other valuables become lost or damaged due to the perils above.
Limits of Commercial Auto Insurance for Architects
| Value | |
|---|---|
| Auto liability coverage limit (minimum) | $25,000 per bodily injury $50,000 per accident $15,000 per property damage |
| Uninsured motorist coverage limit (minimum) | $25,000 per bodily injury $50,000 per accident |
| Underinsured motorist coverage limit (minimum) | $25,000 per bodily injury $50,000 per accident |
| Medical payments/personal injury protection coverage limit | $500-$5,000 per person |
| Rental reimbursement coverage limit | $30-$50 per day $900-$1,500 max |
| Coverage limit for trailers and other equipment attached to the vehicle | $2,000 |
Commercial auto insurance takes care of costs if an accident happens while you’re driving to meet a client, inspect a project site, or join a seminar. It will also mitigate the cost of vehicle maintenance. A typical commercial auto policy in building designer insurance offers these:
Auto Liability Coverage
Commercial auto insurance has auto liability coverage. And it will account for these expenses if you cause a vehicular accident:
Medical treatment of the victims
Funeral costs of the victims
Property damage of the victims
Defense costs if the victims decide to sue
Court judgments
Physical Damage Coverage
The physical damage coverage of commercial auto insurance takes care of vehicle maintenance expenses. You get this as a comprehensive policy or collision policy.
Comprehensive physical damage coverage will cover expenses if your vehicle is damaged by fire, theft, vandalism, weather, and other covered perils.
Collision physical damage coverage will cover repair expenses if your commercial vehicle got damaged because of a vehicular accident.
Note that both types of physical damage coverage doesn’t grant protection against rollovers and normal wear and tear.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage will cover your medical treatment when the driver who caused the vehicular accident isn’t insured or doesn’t have enough auto liability insurance. Coverage also applies to your passengers.
Medical Payments and Personal Injury Protection Coverage
Medical payments and personal injury protection coverage takes care of your medical treatment and the passenger’s medical treatment when:
You caused a vehicular accident
You got involved in a vehicular accident caused by another driver
Personal injury protection coverage is more comprehensive than medical payments coverage, because it also takes care of lost wages, rehabilitation, medication, and hospitalization.
Rental Reimbursement Coverage
Rental reimbursement coverage will cover vehicle rental expenses or public transportation costs while mechanics are repairing the car you’re using for architecture work.
Get all the best quotes from leading providers in a click of a button!
Workers compensation insurance might not be very useful considering that you’re an independent architect working alone.
However, it’s important to get this architect business insurance if clerks and architectural associates are working with you. Here are some situations where you’ll find this insurance useful:
An employee is surveying a construction site to make adjustments to the design. The employee trips on something and falls from a height
An employee is in charge of a renovation project. While inspecting the place, the employee contacts a bare live wire and gets electrocuted
When a part-time or full-time employee needs money for a work-related injury or disease, workers compensation insurance allows your business to cover these costs:
Medical Treatment
Workers compensation insurance will pay for the first aid treatment or emergency medical care of your employee who sustained a work-related injury or disease. It will also pay for private EMT services.
Hospitalization
Workers compensation insurance pays room, food, nursing, and other hospital bills if an employee needs to stay in the hospital to receive adequate medical care.
Medication
You can use workers compensation insurance to get the money an employee needs for his or her occupational disease or injury.
Rehabilitation
Workers compensation insurance allows you to cover rehabilitative care costs, so that your employee can recover fully and resume working.
Lost Wages
Workers compensation insurance covers lost wages if an employee files a leave because of a work-related injury or disease. While on workers comp, the employee will receive a weekly allowance equal to two-thirds or 67% of the average weekly wage.
Death Benefits
If your employee dies due to a work-related injury or disease, workers compensation insurance will take care of funeral costs and provide an allowance to dependents on your behalf.
Limits of Employer’s Liability Insurance for Architects
| Value | |
|---|---|
| Each employee bodily injury by accident limit (minimum) | $100,000-$2 million |
| Each employee injury by disease limit (minimum) | $500,000-$2 million |
Your workers compensation insurance will automatically come with employer’s liability coverage in most cases. You can choose to remove this from the policy.
But we suggest you don’t. Employer’s liability insurance will cover settlements, defense costs, and court judgments if an employee files a claim and accuses you of negligence or failure to provide compensation for a work-related injury or disease.
The average architect insurance cost is $34 per month or about $408 per year for a $1 million general liability insurance policy. Here’s another table showing how much the recommended insurance companies charge for their architect insurance:
| Company | Cost per Month | Cost per Year | Best for |
|---|---|---|---|
| Next | $20 | $240 | Best overall; Fastest architect general liability insurance policy |
| Coverwallet | $23 | $276 | Architect insurance online quotes comparison |
| Tivly | $25 | $300 | Comparing architect insurance quotes over the phone |
| Hiscox | $27 | $324 | Home-based architects |
| Progressive | $29 | $348 | Commercial auto insurance for architects |
| The Hartford | $30 | $360 | Business owner’s policy for architects |
| AIG | $33 | $396 | International architects |
Expect to pay $43 per month which comes to an annual cost of $516 a year. A lot of factors come into play when determining the architect professional liability insurance cost, such as claims history, number of employees, whether or not you work with subcontractors, and more. To enjoy cheaper architects PI insurance cost, we recommend you do these things:
Ensure that contracts have indemnification clauses in your favor
Have clients sign-off deliverables
Work with an in-house or outside legal counsel to determine the risks of a project contract
Get all the best quotes from leading providers in a click of a button!
Due to the many risks associated with architectural businesses, there are many insurance companies offering architect insurance. However, the quality and coverage vary from one insurance company to another.
Therefore, you need to go for a reputable insurance company with the best policy. Here's a review of the best architect insurance companies. Read to know their pros, cons, and pricing for a $1 million general liability coverage.
Best overall
Get an online proof of insurance and send as a text message, email, or social media post
Fastest general liability insurance
Great customer service and reputation
Issues an online proof of insurance instantly
Outstanding value for money
Bundle two or more architect insurance policies and get a 10% discount
Couldn’t find any
NEXT Insurance is an innovative digital insurance company with customized business insurance policies. Next offers general liability insurance, workers compensation insurance, commercial property insurance, and business owner’s policy. Note that architect E&O insurance is offered as part of NEXT’s general liability policy.
Best for: Best overall; Fastest architect general liability insurance policy
Average cost: $20 per month
Our rating: 10/10
Compare architect insurance quotes online
Competitive rates from leading commercial insurers in your sector on a digital marketplace
Cancel a coverage anytime
Not an insurance broker but a carrier offering the quotes of its partners
Coverwallet Insurance has been in operations for many years as a digital marketplace for business insurance and was recently acquired by AON. Thanks to its comprehensive online architect insurance quote comparison, Coverwallet enjoys massive membership and loyalty and helps hundreds of thousands save big money on their commercial insurance needs while finding them the best policies from the best commercial insurers for their industry.
Coverwallet offers tailored architect insurance quotes comparison online that covers a wide range of risks. Apart from general liability insurance, you can also have professional liability insurance for architects as well as all the other business insurance products such as BOPs, workers comp, commercial.
Best for: Architect insurance online quotes comparison
Average cost: $23 per month
Our rating: 10/10
Call and compare architect insurance quotes over the phone
Responsive customer service
Comprehensive professional liability insurance for architects
You have to call to get a quote
A lot of reputable insurance companies will refer you to Tivly (formerly CommercialInsurance.NET) if your profile doesn’t match their standards.
To get covered by this company, you need to call and talk with a representative who will discuss several coverage options such as commercial property insurance, general liability insurance, employer’s liability insurance, commercial auto insurance, and more.
Call Tivly now to compare architect insurance quotes over the phone and get covered.
Best for: Comparing architect insurance quotes over the phone
Average cost: $25 per month
Our rating: 10/10
Offers tailored insurance policies
Quick claim responsiveness
Worldwide coverage
Some customers complained that Hiscox increases premiums without prior notice
Hiscox is an established insurance company with global prominence. It offers comprehensive insurance cover for a wide range of businesses, including architects. No matter your location, you can purchase an insurance policy from Hiscox because it has offices in most states.
If you want a comprehensive insurance cover for your architectural business, consider purchasing one from Hiscox. They offer both general and professional liability insurance for architects. However, the cost of these policies could be high because they are very comprehensive.
Best for: Home-based architects
Average price: $27 per month
Our rating: 8/10
Fast coverage
Comprehensive insurance cover
Affordable
Not available in many countries
Progressive has been in existence for many years. Over that period, it has established itself as a reliable and reputable insurance company.
It offers insurance cover for a wide range of businesses, including architects. Their professional liability insurance policy covers actual and alleged negligence claims. Bundle any of your business insurance with this company’s commercial auto policy to get a discount.
Best for: Commercial auto insurance for architects
Average cost: $29 per month
Our rating: 7/10
Affordable
Monthly payments with no extra fees
Offers tailored architect insurance
Not available in some states
The Hartford is a prestigious company with unique insurance cover. As an architect, you can benefit immensely from this company’s innovative general liability, commercial property, workers compensation, and commercial auto insurance.
Best for: Business owner’s policy for architects
Average cost: $30 per month
Our rating: 7/10
Comprehensive coverage
Fast claim responsiveness
Available in most states
Some claims are not covered
AIG is one of the oldest insurance companies in the world. It is a prestigious company offering some of the best policies.
AIG offers comprehensive professional liability insurance for architects. This policy covers a wide range of risks associated with the profession. Coverage applies on alleged and actual negligence, punitive damages, and breach of confidentiality.
Best for: International architects
Average cost: $33 per month
Our rating: 7/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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