How Much Is Business Insurance
for Engineers?

As the economy shifts, more engineers have started their own businesses or taken up freelancing. One of the challenges of starting your own engineering business is finding affordable insurance that covers your risk.

To help you budget for your insurance needs, let's look at sample insurance quotes for common engineering coverages.

Note: These sample quotes are only estimates. Actual premiums can vary.

HOW MUCH IS
General Liability Insurance?

What Does General Liability Insurance Cost?

Slip-and-fall accidents, copyright infringement, client property damage lawsuits — these basic business risks are all covered by General Liability Insurance. When a third party (i.e., someone who doesn't work for your engineering firm) sues your business, General Liability can cover the cost of the lawsuit, paying for lawyers' bills, court costs, and settlements to pay damages to the injured party.

General Liability Insurance for engineers typically costs $425 to $440.

Average Premiums, Deductibles and Limits on General Liability Insurance Policies for Engineers
Name USD

Median policy premium:

$425 - $440

Per claim limit:

$1 million

Policy limit:

$2 million

Median policy deductible:

Varies

To see how the cost of General Liability Insurance for engineers compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Business Owner's Policy?

What Does a Business Owner's Policy Cost?

Is there a way for engineers to save money on their business insurance? Yes, rather than buy General Liability and Property Insurance separately, you can buy them in a bundled package called a Business Owner's Policy. BOPs offer significant insurance discounts for small business and freelance engineers.

BOPs typically costs engineers $500.

Average Premiums, Deductibles and Limits on Business Owner's Policies for Engineers
Name USD

Median policy premium:

$500

Per claim limit:

$1 million

Policy limit:

$2 million

Median policy deductible:

$500

HOW MUCH IS
Errors and Omissions Insurance?

How Much Is Errors and Omissions Insurance?

Errors and Omissions Insurance for engineers protects your business from the cost of lawsuits concerning flaws, design errors, and other problems a client might have with your work. Let's look at an example. Say you're hired as a freelance engineer to develop a CAD model for a company. After you turn in your design data to the client, it fails in the prototype phase. The client could come back and sue you not only for the money they paid you, but also for lost time and resources wasted on building the prototype and readying for production. This means you can be sued for damages that are much larger than your contract. Fortunately, engineering E&O covers these lawsuits.

Engineer E&O typically costs $1,550 to $3,600 in annual premiums.

Average Premiums, Deductibles and Limits on Errors and Omissions Insurance Policies for Engineers
Name USD

Median policy premium:

$1,550 — $3,600

Median policy limit:

$1 million

Median policy deductible:

$2,500

To see how the cost of Errors and Omissions Insurance for engineers compares with other industries, visit Insureon's Professional Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Commercial Auto Insurance?

How Much Is Commercial Auto Insurance?

Is you business liable for auto accidents? Yes, your engineering company would have to pay for damages and repairs if its employees are in an accident while driving for work. Commercial Auto Insurance covers these costs when an engineer gets in an accident on the way to a client's office or while doing other work-related driving.

Commercial Auto Insurance typically costs $1,282 to $1,902.

Average Premiums, Deductibles and Limits on Commercial Auto Insurance Policies for Engineers
Name USD

Median policy premium:

$1,282 - $1,902

Median policy limit:

$1 million

Median policy deductible:

$500

HOW MUCH IS
Umbrella Insurance?

What Does Umbrella Insurance Cost?

To enhance their General Liability, Hired and Non-Owned Auto Liability, and Employer's Liability coverage, engineers can purchase Umbrella Insurance (also called Excess Liability Insurance). This policy offers $1 million in extra lawsuit coverage. If an expensive lawsuit exceeds the limits of these policies, Umbrella Insurance will cover the rest.

Average Premiums, Deductibles and Limits on Umbrella Insurance Policies for Engineers
Name USD

Median policy premium:

$404 - $808

Median policy limit:

$1 million

Median policy deductible:

Varies

To see how the cost of Umbrella Insurance for engineers compares with other industries, visit Insureon's Umbrella Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Workers' Compensation?

How Much Is Workers' Compensation?

State laws often require engineering businesses and employers to have a Workers' Comp policy to cover their employees. Make sure to check your state's Workers' Compensation Insurance requirements. When an employee is injured doing a task related to their work, you can be held liable. Workers' Comp can protect your engineering firm from having to pay for accidents and medical costs out of pocket.

Engineering Workers' Compensation Insurance typically costs $555 to $1,188 in annual premiums.

Average Premiums, Deductibles and Limits on Workers' Compensation Insurance Policies for Engineers
Name USD

Median policy premium:

$555 - $1,188

Accident limit:

$100,000

Disease limit:

$500,000

Median policy deductible:

Varies

To see how the cost of Workers' Compensation Insurance for engineers compares with other industries, visit Insureon's Workers' Compensation Insurance Cost Analysis New browser window icon..

Free Quotes on Engineering Insurance

Free Quotes on Engineering Insurance

Need insurance in order to sign a freelance engineering contract? Submit an online insurance application and our engineering insurance experts will get to work right away on sending you quotes to match your needs.

Grab-n-Go Information

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Built to Last: A Business Insurance Guide for Architects, Engineers, and Design Professionals
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