Mechanical Engineer Insurance: Cost & Quotes From $11

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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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Mechanical Engineer Liability Insurance

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

Mechanical Engineer Professional Liability Insurance

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. 

Other Insurance Covers for Mechanical Engineers

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. 

Mechanical Engineer Worker's Compensation Insurance

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 

Mechanical Engineer Commercial Property Insurance

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

Mechanical Engineer Commercial Auto Insurance

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

What Commercial Vehicles Can You Insure Using Commercial Auto Insurance?

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. 

Mechanical Engineer Business Owner's Policy

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. 

Mechanical Engineer Cyber Liability Insurance

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. 

Mechanical Engineer Employer’s Liability Insurance 

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. 

Mechanical Engineer Employment Practices Liability Insurance

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. 

Mechanical Engineer Insurance Cost

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.