For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
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.
Also read:
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.
Get all the best quotes from leading providers in a click of a button!
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 firm can 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 |
Get all the best quotes from leading providers in a click of a button!
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.
This company does not care about the people they insure or the people that work for the company. They do stupid meets all day long about quality on calls while injured workers sit in pain waiting for answers but can never get to anyone to help them. This company hires uneducated people to run the company so that nothing important get done. I have heard so many stories about injury workers having bad service. They can’t never get their claims adjuster on the phone and the doctors that this company tells people to go to do not care about their patients causing their injuries to become worse. This company neglect on taking care of people’s injured employees have caused people to end up with disabilities for the rest of their life. if you get insurance under this company you will end up having to hire a lawyer to fight them in court. Do not get a policy with this company. Your employees will pay the price and so will the owners of the company. Honestly they need to get shut down. Avoid at all cost do not get this insurance and do not work for this company.
Terrible customer service. I got this insurance for my Amazon store when I ran one, took a break and cancelled all my subscriptions. I called these guys and they recommended sending an email. They never responded and have been charging me since then. Definitely going to dispute via the bank. Hate when businesses take advantage of other small businesses for their own gain.
I purchased a year long policy for my small business I paid for the year up front. First they sent me the incorrect paperwork and acted as if I had something to do with the mistake. About three weeks later I received a bill for the policy. I then sent countless email as the payment did clear my account. About a week later I'm told they have no record of my payment. Now I have to send any documents proving I said then. It went on for weeks. More requests of proof from this person then another. Every conversation had an under lying tone of me being dishonest. Finally I just gave up with them and filed a despite with my bank which took all of three days.. So now I'm continuing to receive emails that my policy is past due and will be cancelled. Funny, I was told I didn't have a policy because they couldn't locate it.
Purchased the General Liability policy I needed to fulfill a contract for my hiring party. Simply Business made it very easy to complete an application and review multiple quote options. Ended up purchasing a policy for 1/2 of what I originally was told by my agent.
I insured my small business with them from early 2016 to January 2022. I had a workman's compensation policy with them the entire time for my staff of approximately 10 people which fluctuated up and down minimally over the years. We ran a very safe operation and never had so much as one claim. I sold my business in early 2022 and cancelled my policy which triggered a final audit of $2871.00 which was owed back to me. Of course I dissolved my LLC immediately after selling the business and thus closed my bank checking account at the advise of my accountant. Though my name was on the business policy, Employers Preferred Insurance Company refused to issue a check to me directly as the policy holder due to...you guessed it, policy. Long story short, if you sell your business keep a small amount deposited in the checking account because it's almost a guarantee that companies such as Employers will use their policy to weasel their way out of money owed after the dissolution of a business. I should have known that I would be treated a just another number shortly after I signed with them as the sales agent just disappeared after I was set up for an online account to manage my policy. My next business venture will entail me working with an actual insurance agent who has an office in an actual brick and mortar building!