Mechanical engineers are highly regarded for their uncanny abilities to bridge the gap between science, technology, and society. As one, you design and implement projects for factories, communities, and small businesses. Your clients and the general public place great trust and expectations on your skills and abilities.
That said, mechanical engineering is a highly complex field with many inherent risks. Implementing innovative technology carries many risks, but your clients expect perfection every time. One mishap could have a drastic impact on your reputation and finances. Taking out adequate mechanical engineer insurance coverage protects your business against any eventualities.
Here's all you need to know about purchasing insurance for mechanical engineers.
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Liability insurance for mechanical engineers, primarily offered as a general liability insurance, protects against bodily injuries, property damage, and lawsuits. This insurance coverage is a primary requirement because it gives you the confidence and peace of mind needed to acquire and satisfy project contracts. General liability insurance for mechanical engineers covers different types of perils, including:
Bodily injuries - A client's employee trips over your work tools and sustains severe injuries from the fall. They initiate a personal injury claim against your firm seeking damages and compensation. General liability insurance can help with this
Property damage - You’re hired by a factory to fix a particular processing machine. While you were working on it, the machine suddenly burst into flames. This resulted in damage to the surrounding structures. The factory held you liable for what happened and asked for reimbursements. In this situation, general liability insurance will provide the money you need to cover the amount demanded
You will enjoy enhanced protection if you decide to avail the optional policies general liability insurance offers.
| Coverage | Function |
|---|---|
 Advertising Injury Coverage | Advertising injury coverage is an optional policy in general liability insurance that will cover attorney fees, administrative costs, court-ordered payments, and other legal expenses if a client or another business sues your mechanical engineering firm for slander, libel, copyright infringement, and other forms of advertising or reputational harm |
 Products and Completed Operations Coverage | Products and completed operations coverage will cover costs if a claim is filed because your mechanical engineering firm caused personal injuries or property damage through a completed product or service |
 Rented Premises Liability Coverage | You need to include rented premises liability coverage to general liability insurance if you’re renting or leasing a commercial space for your mechanical engineering firm. Rented premises liability coverage will provide reimbursements on your business’s behalf if the rented or leased commercial space is damaged by fire and the landlord files a claim |
While mechanical engineering contractors are highly skilled, mistakes do happen. Mechanical engineers often purchase professional liability insurance together with general liability insurance. Also known as errors & omissions insurance, this policy protects your business primarily against:
Design errors: Your firm designs a piece of custom machinery for an industrial client. Later on, the client uncovers design flaws that make the machine highly inefficient. As a result, your client incurs high operational costs every month. The client initiates a lawsuit seeking compensation for financial losses
Inaccurate advice: A client contracts you to recommend measures to improve a plant's production efficiency. Your recommendations overlook some critical factors which lowered the plant's production capacity. The client takes legal action to recover lost revenue
Note that professional liability insurance also covers other perils such as violation of good faith, violation of fair dealing, misrepresentation, and other acts considered errors and omissions.
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While helpful, general liability insurance for mechanical engineers only covers you from third-party risks and claims. That only covers a fraction of your risk exposure. Taking out additional insurance coverage provides your engineering firm with all-around protection against every risk scenario.
Save for Texas, every state in the US requires mechanical engineers to have this coverage. Worker's compensation insurance policy shields your firm against the severe consequences of workplace injuries or illnesses. The coverage of workers' compensation insurance is outlined in the table below:
| Coverage | Function |
|---|---|
 Employee Treatment/Medical Procedure | Workers' compensation insurance will cover the medical treatment/procedure of an employee who got sick or injured because of a work-related hazard. This includes surgeries, radiation therapies, chemotherapies, CT scans, etc. The fees of attending physicians are covered too |
 Hospitalization | Your mechanical engineering firm’s employees will need to stay in the hospital for days, weeks, or months after sustaining a work-related injury or disease. This too is covered by workers’ compensation insurance. Workers comp will pay for hospital bills regardless of where the employee is admitted |
 Medication | Your employee will surely need medicines to recover faster from a work-related injury or disease. It’s also the job of workers' compensation insurance to provide money so that your mechanical engineering firm’s employee doesn’t use personal funds for medication |
 Rehabilitation | Workers’ compensation insurance will cover rehabilitation if your employee needs it to fully recover from a work-related injury or sickness. Specific expenses covered are therapist’s fees, rehabilitation equipment, and more |
 Lost Income Compensation | A work-related injury or disease might end up with your employee not being able to come to work. The law requires you to cover lost income in such a situation. Workers' compensation insurance will take care of this responsibility for you by providing a weekly allowance for the injured or sick employee. This weekly allowance is equal to two-thirds or 67% of the average weekly wage |
 Death Benefits | Your mechanical engineering firm's employee might die because of a work-related accident or disease. Workers' compensation insurance also helps with this. In practice, this insurance will provide payments for funeral expenses and will give financial aid to the deceased’s dependents |
Understand that mechanical engineering is a very risky profession. State and federal agencies have recorded a lot of accidents resulting in death, impairment, and minor injuries. Here’s one example from the Occupational Safety and Health Organization.
A 22-year-old mechanical engineer was troubleshooting the hydraulics of an injection molding machine. This molding machine has a hydraulic cart powered by a 480-volt adjacent machine. While working on it, the mechanical engineer was electrocuted and died at the scene
Most engineering firms maintain a physical office where they keep valuable equipment, tools, documents, and other business assets. Commercial property insurance coverage for mechanical engineers protects your business's belongings against theft, disasters, fire, vandalism, etc. The policy will cover the cost of repair and replacement following an incident.
 |  |
|---|---|
| Building Destruction | Building Damage |
| Your office or warehouse might burn and turn into ashes. It’s also possible for extreme weather to tear them down, leaving only debris behind. In such events, commercial property insurance will see to it that your mechanical engineering firm won’t end to its demise by reimbursing losses based on the actual cash value or replacement cost of the destroyed office or warehouse | Your office or warehouse’s structures might incur damage due to theft, fire, vandalism, and other covered perils. Commercial property insurance also covers this by allowing you to recoup losses based on the replacement cost or actual cash value of damaged structures such as windows, signages, roofing, gutter, siding, etc. |
Decide to get stocks and contents coverage, and business equipment and tools coverage so that commercial property insurance provides enhanced protection for your mechanical engineering firm.
 |  |
|---|---|
| Stocks and Contents Coverage | Business Equipment and Tools Coverage |
| Inside your mechanical engineering firm’s office or warehouse are valuable items such as blueprints, materials, CCTV cameras, facility installations, and more. When these become damaged or lost due to fire, theft, vandalism, and other covered perils, stocks and contents coverage will reimburse your losses | Your mechanical engineering firm uses equipment or tools such 3D printers, digital force gauges, vibration isolators, personal protective equipment, etc. Business and tools coverage is an add-on to commercial property insurance that will reimburse losses if the items mentioned become lost or damaged due to fire, theft, vandalism, and other covered perils |
Traveling to project sites is part of a mechanical engineer's job description. This requires you to maintain a vehicle used for business purposes. Commercial auto insurance has the following coverages:
| Coverage | Function |
|---|---|
 Auto Liability Coverage | Your mechanical engineering firm might cause a vehicular accident and inflict injuries to third-parties or damage someone’s property. When aggrieved parties file a claim, auto liability coverage kicks in to cover their medical expenses. Also, it will pay for attorney fees, administrative costs, court payment orders, and other legal expenses if the matter is taken to court. Note that auto liability coverage can’t help if your mechanical engineering firm’s commercial vehicle caused the accident due to a criminal activity |
 Physical Damage Coverage | Commercial auto insurance for mechanical engineers has physical damage coverage. Physical damage coverage will cover the expenses for vehicle parts repair or replacement. It has two forms - collision and comprehensive. Comprehensive physical damage coverage will cover parts repair or replacement if your firm’s commercial vehicle was damaged by fire, theft, vandalism, and other covered perils. On the flip side, collision physical damage coverage will take care of parts repair or replacement if the commercial vehicle of your firm incurred damage after colliding with another vehicle or object |
 Rental Reimbursement Coverage | Rental reimbursement coverage is available if you decide to add physical damage coverage to commercial auto insurance. So what does this do? When you need to rent a vehicle while your firm’s commercial vehicle is being repaired, rental reimbursement coverage will help you recoup all of the resulting expenses |
 MedPay/Personal Injury Protection | MedPay and personal injury protection functions to protect the driver and passenger of your mechanical engineering firm’s vehicle during vehicular accidents. MedPay will cover the medical expenses of the driver and passengers. Personal injury protection does the same but also provides additional coverage for lost income compensation and after hospital visits. Additionally, in case of death, MedPay and personal injury protection cover funeral expenses |
Your mechanical engineering firmcan use commercial auto insurance as coverage for its cargo van, flatbed truck, and other vehicles. By the way, if you want to insure multiple vehicles, go for commercial fleet insurance. Commercial fleet insurance is just another type of commercial auto insurance that allows you to cover 2 - 15 vehicles under one insurance policy at reasonable rates.
Business owner's policy bundles standard insurance policies such as general liability, business property, worker's compensation, and more into one affordable product. Most insurers offer this coverage at discounted rates to shield small businesses from the steep cost of business interruption.
Technology is at the center of every engineering firm as it bolsters capability, efficiency, and productivity. Unfortunately, cybercriminals are getting bolder by the day and are actively crafting new ways to extort their victims. With cyberattacks becoming commonplace, cyber liability insurance coverage is a must. The policy covers the cost of lawsuits related to cyberattacks, ransomware, data breach, and service interruption. It also covers the cost of public relations.
An employee might sue your mechanical engineering firm for negligence after experiencing a work-related injury or disease. To protect yourself against this, get employer’s liability insurance that provides coverage for attorney fees, administrative costs, compensatory payments, and other legal expenses.
Before you get employer’s liability insurance, we suggest you check with the workers’ comp department of your state. Some states have workers comp laws that prohibit employees from suing employers whose business is covered by workers' compensation insurance. And if this is the case in yours, buying employer’s liability insurance isn’t crucial.
Employer’s liability insurance doesn’t provide coverage if your employee files a claim for wrongful termination, sexual harassment, workplace discrimination, and other related offenses. These are covered by employment practices liability insurance instead. The coverage of employer’s liability insurance also includes attorney fees, compensatory payments, administrative costs, and other legal expenses.
The cost of mechanical engineer insurance coverage varies from one firm to the next. Insurance companies use a range of factors to calculate policy premiums. Therefore, two engineering firms with identical products may have different insurance costs.
$1 million general liability insurance for mechanical engineers' costs $21 per month or about $252 annually. Insurance companies use some of these factors to calculate your insurance premiums:
Business location
Years in business
Your annual income
Your firm's claim history
Your risk management strategy
Your coverage needs
The cost of mechanical engineer insurance policy also varies among insurance service providers. Shopping around for quotes can help you lower insurance costs while getting the best coverage. Click the "Get Quotes" button to compare insurance quotes from the best carriers.
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| CoverWallet | $30 | $360 | Mechanical engineer insurance quotes comparison online |
| Thimble | $41 | $492 | Engineers looking for comprehensive, short-term insurance coverage |
| Next | $48 | $576 | Mechanical engineers looking to save money on bundled policies |
| Hiscox | $52 | $624 | Small and large engineering firms looking for tailored insurance coverage |
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You must partner with a reliable insurance service provider when purchasing insurance coverage for your engineering firm. Here's a list of the best-in-class insurance carriers for mechanical engineers. Read to know their pros, cons, and pricing for a $1 million general liability coverage.
Use-friendly
Provides free online quotes
Online support through live chat
CoverWallet is an insurance brokerage firm, not an insurance company
Coverwallet is an online insurance brokerage platform that enables small businesses to compare insurance quotes from different insurance carriers. While CoverWallet isn't an insurance company, it can help you save money on insurance coverage. The platform saves you the hassle and effort of contracting multiple insurance companies looking for quotes. However, you can use CoverWallet's online tools to buy insurance, pay premiums, download a certificate of insurance, and file claims. CoverWallet can help you get the best insurance coverage at an affordable cost.
Best for: Mechanical engineer insurance quotes comparison online
Average cost: $30 per month
Our rating: 10/10
Exceptional online support
Flexible policy coverage terms
You can pause coverage for 30 days
It isn't available in Kentucky, Washington, and New York
Founded in 2015, Thimble is an on-demand insurance service provider based in New York. The insurer is a go-to option for engineers looking for custom coverage to suit their needs. Instead of month-long coverage, Thimble lets you get hourly, daily, or weekly insurance coverage. Such policies come in handy when undertaking temporary projects or operating in areas beyond your standard carrier's coverage.
Best for: Engineers looking for comprehensive, short-term insurance coverage
Average cost: $41 per month
Our rating: 10/10
Easy online signup
Generous discounts on bundled policies
Affordable premium rates
It doesn't cover some states
Next Insurance is an online insurance company catering to the needs of small and medium businesses. The company specializes in offering bundled insurance policies at highly discounted rates. It's the perfect choice for a business engineer looking for fast insurance coverage. It's also ideal if you wish to manage your insurance policies online. Leveraging innovative technology enables Next to offer some of the lowest insurance rates in the country.
Best for: Mechanical engineers looking to save money on bundled policies
Average cost: $48 per month
Our rating: 10/10
Provides comprehensive online services
Up to 5% discount on bundled purchase
Worldwide professional liability coverage
Limited product offering
Provides BOP coverage to firms with less than ten employees
Headquartered in Bermuda, Hiscox is one of the most reputable insurance companies in the United States. It is one of the few companies catering to mechanical engineers who need professional liability coverage across the globe. Hiscox specializes in four coverage options for small engineering firms – general liability, professional liability, cyber liability, and business owner's policy. However, you can purchase specialized coverage such as worker's comp and commercial auto insurance from other providers in Hiscox's partnership network.
Best for: Small and large engineering firms looking for tailored insurance coverage
Average cost: $52 per month
Our rating: 9/10
You can never be too careful when purchasing insurance coverage for your engineering firms. Given the breadth and scope of many engineering projects, one mishap can cost you a fortune to fix. Having the right coverage saves your company from financial ruin, disrepute, and service interruption.
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.
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
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.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
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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