General Liability Insurance
for Architects, Engineers, & Design Professionals
As the owner of a startup or small architectural, engineering, or other design firm, you have a lot on your plate. Often, you play a part in all aspects of your business, from working on projects to managing colleagues and communicating with clients to worrying about when the next project will come down the pike.
You understand how important it is for everyone at your firm to pay attention to the details as one mistake can result in costly delays or safety issues that lead to devastating consequences.
Even though many hands often touch a project, as the head of your business you will often be held liable for any mistakes or accidents that may occur in your office. You can protect yourself and your company from many disputes and potential lawsuits with General Liability Insurance.
How General Liability Insurance Protects You
How General Liability Insurance Protects Architects, Engineers, & Design Professionals
General Liability Insurance for architects, engineers, and design professionals protects against two types of claims: those alleging property damage and those alleging bodily harm to third parties. These claims come from people — clients, subcontractors, employees — who say that you or someone who works for you harmed them in the aforementioned ways. For uninsured firms, these claims could result in dire financial consequences. What would happen to your architectural, engineering, or design firm if…
- As an interior designer, you accidently ruin a valuable piece of artwork in your client's home?
- Someone walked into your architectural firm and tripped on a rug, falling and breaking a bone?
- One of your engineers got into a physical altercation with a client, resulting in injuries?
Although insureon understands that not all architectural, design, and engineering firms face the same kind of risks, we also know that insurance providers group them together. If your business is one that incurs minimal risk, ask an insureon agent about a Business Owner's Policy. This policy, otherwise known as a BOP, combines your General Liability and Property Insurance to form one bundled, discounted package.
General Liability Insurance: Key Details
General Liability Insurance: Key Details for Architects, Engineers, and Design Professionals
Even if your architectural, engineering, or design firm faces very low risk overall, there are many factors to consider when researching General Liability Insurance. These may include…
- Client contracts. Many of your client contracts will require you to carry General Liability Insurance. Because you'll be spending time at your clients' offices — and possibly construction sites or manufacturing facilities, depending on your line of work — your client will want to know you're covered so that they won't have to pay for you, should an accident happen.
- The state you work in. Some states require that independent contractors — including architects — carry their own General Liability coverage.
- Your contractors. If you hire contractors, it's generally a good idea to require them to carry a policy of their own. If your state or client mandates that your coverage extend to them as well, you will be responsible for making sure the contractors get into your policy.
- Unfounded claims. Sometimes, people will try to sue you even if their claim is unmerited. In this case, an uninsured business would still have to pay for expenses related to legal defense, which can become quite steep. If your firm is insured, your General Liability policy would kick in at this point.
- What your policy covers. In addition to legal defense, your General Liability Insurance may cover (up to its limits) bond premiums, settlements, and lawsuit-related judgments, such as the medical expenses of a client suing over an injury. In certain cases, your policy may also cover business interruption costs, including the income you lose from having to defend yourself in court.
- What the policy doesn't cover. It's important to realize that General Liability Insurance doesn't cover professional errors and oversights. You'll need Errors & Omissions Insurance for that. In addition, this policy does not cover on-the-job employee injuries; those are covered by Workers' Compensation Insurance.
Customize Your Business Insurance Plan
Architects, Engineers, & Design Professionals: Customize Your Business Insurance Plan
As you know, the risks of architectural, engineering, and design firms can vary greatly. An insureon agent can help assess the risk of your business, and build a policy to fit your needs. Insureon agents are specially trained in the needs of architectural, engineering, and design firms, and can help match you with one of the top insurance providers in the country.