Architect Insurance: Liability, Cost & Quotes From $5

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As an architect, you are responsible for designing and conceiving buildings according to what your client wants. You also work with other contractors on-site to build different residential or commercial structures. Even though this profession doesn't condone any mistakes, they still happen. 

Working with different people also creates some risks. In case of any mistakes that affect the quality of the building, your client can file a claim against you. This is why it is vital to have architect insurance that protects you against such claims. 

Read on as we discuss the bits and pieces of business insurance for architects and what it covers. We will cover topics like architect liability insurance and what it covers, architects professional liability insurance and what it is, architects E&O insurance coverage, architect insurance requirements, as well as architect insurance cost, to give you an idea of how much you can spend on it. Lastly, we will review some of the best architect insurance companies offering quality architect business insurance, building designer insurance and insurance for architectural technicians and designers in America.

Architect Liability Insurance

Architect liability insurance coverage protects your architectural business against claims of property damage or bodily injury caused by it. For instance, when a client gets injured in your office, architect liability insurance will protect you. Liability insurance for architects will cover their medical expenses and other related costs. Just like the graphic design liability insurance for graphic designers, a plumber that carries plumbing liability insurance and real estate agent liability insurance for realtors, architect liability insurance also protects architectural business from claims of slander and libel. However, it is crucial to note that this architect business insurance coverage does not protect you against claims that relate to your professional services, and this leads us to the next topic.

Architect Professional Liability Insurance

Architect professional liability insurance, also referred as architects professional indemnity insurance, architects PI insurance and architects PII insurance, protects your architectural firm and employees against professional-related claims. For instance, when you make an error or act negligently, professional insurance for architects will protect you from emerging claims. Professional liability insurance is different from liability insurance in the sense that it only covers claims arising from your activities as a professional architect. 

On the other hand, general liability covers things like property damage or accidents that result in injury. Furthermore, general liability insurance policies are relatively standard compared to professional liability insurance. Professional liability insurance has more specialized and diverse policies due to the comprehensive professional practices associated with architects. For better understanding, here are some of the areas professional liability insurance covers.

Client Expectations

Most claims arising from professional liability result from the architect's failure to manage the client's expectations. Most clients demand unreasonable results due to their limited experience in the architectural field. Business insurance for architects will protect you against such claims and help avoid costly expenses. 

Scope of Work

As a skilled architect with a lot of experience, you cannot deliver below-average projects that are way below expectations. However, some uneducated clients might want you to do things according to their wishes. While they think they are correct, what they want could be impossible from a professional point of view. This results in numerous misunderstandings in the course of the project. No matter how much you try to clarify things, a client might file a claim against you. Architects and engineers professional liability insurance will protect you against such claims.

Non-traditional Practices

Young and inexperienced architects might choose to custom-build and design their projects in a bid to be innovative. If these architects are your employees, you could face a claim. With architects PI insurance, also known as architects PII insurance (architects professional indemnity insurance), the financial and reputation damage is limited. Therefore, it is essential to acquire this insurance policy for your architectural business.

Architects Errors and Omissions (E&O) Insurance

When a client files a claim against your architectural business, you need to prepare for consequences. Generally, lawsuits against architects are costly and could result in severe financial losses. Without architects errors and omissions insurance, also known as architect E&O insurance, you risk losing a lot of money on settlements. 

Whether you make an omission on the project's blueprint or the client doesn't like the color scheme you used, architect e&o insurance can help pay legal fees that could otherwise affect your operations. Not all building designs go precisely as planned, which means the chances of a lawsuit are high. Therefore, you should get architect insurance cover to protect your architectural business against these claims.

Architect Insurance Cost

The average architect insurance cost is $48 per month or about $570 per year for a small architect's $1m general liability insurance policy. Architect insurance is vital because it protects architects against lawsuits that could result in severe financial losses and its liability insurance cost is rather affordable in most cases. To give you an accurate estimate of architect insurance cost, here is a summary of some of the best architect insurance companies and how much they charge:

Architect Professional Liability Insurance Cost

Architect professional liability insurance cost is slightly cheaper than architect general liability insurance. This is because the risks covered by this coverage type are common. The average architects PI insurance cost of insurance for architectural designers is $43 per month which comes to an average annual cost of $516 a year. It is important to note that different factors determine architect professional indemnity insurance cost. Some of them include;

Type of Project

Some projects cost more than others. For example, a project that involves the construction of a multistorey building is susceptible to lawsuits. Projects like skate park construction could result in more injuries. 

Claims History

This refers to the history of the architectural firm in question and the claims related to the project. If the project's claim history is high, the insurance cost is higher. 

Best Architect Insurance Companies

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 are some of the best insurance companies.

AIG Architects & Engineers Liability Insurance

AIG is one of the oldest insurance companies in the world. It is a prestigious company offering some of the best policies and coverage.

AIG Policy Details

AIG offers comprehensive professional liability insurance for architects. This policy covers a wide range of risks associated with the profession, like errors and omissions.

Pros

• Comprehensive coverage

• Fast claim responsiveness

• Available in most countries

Cons

• Some claims are not covered

Average cost: $70

Best for: Freelance and international architects and architectural contractors

Coverwallet Architect Liability Insurance

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. 

Pros

• Offers tailored architect insurance quote comparison online

• Competitive rates from leading commercial insurers in your sector on a digital marketplace

• You can buy it online in no time

Cons

• Hard to find

Average cost: $30

Best for: Online architect insurance quote comparison

The Hartford Architect Insurance

The Hartford Insurance Company is a prestigious company with unique insurance cover. As an architect, you can benefit immensely from their unique policies.

Hartford Policy Details

It offers professional liability insurance that helps you protect your architectural design business from claims arising from professional services. These claims could be a result of negligence or omissions.

Pros

• Affordable

• Monthly payments with no extra fees

• Offers tailored architect insurance

Cons

• Not available in some countries

Average cost: $60

Best for: BOPs and insurance for larger architects with employees.

Hiscox Architect Insurance

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 countries.

Hiscox Policy Details

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. 

Pros

• Available in many countries

• Offers tailored insurance policies

• Quick claim responsiveness

Cons

• Can be costly 

Average price: $48

Best for: International and home-based architects

Next Architect Liability Insurance

Next Insurance is a reputable innovative digital insurance company with customized business insurance policies. Thanks to its comprehensive and fast coverage underwriting process, Next architect liability insurance is a great option for architects in America. 

Next Architect Insurance Policy Details

Next insurance offers several architect insurance policies. Whether you want general or professional liability insurance, or some broader coverage, you will have it here. 

Pros

• Offers the fastest coverage 

• Comprehensive architect insurance coverage

• Tailored insurance for architects

Cons

• Mainly digital

Average cost: $38

Best for: Fastest coverage

Progressive Architect Liability Insurance

Progressive Insurance Company 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.

Progressive Policy Details

Progressive Insurance offers the best policies for architects. Their professional liability insurance policy covers hundreds of claims, protecting your business against lawsuits. 

Pros

• Fast coverage

• Comprehensive insurance cover

• Affordable

Cons

• Not available in many countries

Average cost: $59

Best for: Best overall architect liability insurance policy