Why do architects need insurance?
Designing or renovating a building poses significant challenges and risks for your architectural firm. If a client sues over scope creep, or a design flaw leads to an injury, your business could face a lawsuit. Insurance for architects protects against legal costs, medical bills, and other losses.
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With Insureon, architects can get insurance coverage the same day they apply for quotes.
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What types of business insurance do architects need?
These insurance policies cover the most common risks for building design professionals like architects.
Professional liability insurance
Professional liability coverage helps pay for legal defense costs related to your professional services, such as an error in a blueprint. It's also called errors and omissions (E&O) insurance.
- Budget overruns
- Professional negligence
- Design errors
General liability insurance
Commercial general liability insurance covers basic risks, including customer slip-and-fall injuries. Bundle it with property insurance for savings in a business owner’s policy (BOP).
- Customer bodily injuries
- Damaged customer property
- Libel and other advertising injuries
Business owner’s policy
A business owner's policy, or BOP, is a cost-effective way for architects to buy commercial property insurance and general liability coverage together.
- Customer injuries
- Damage to customer property
- Business property damage
Workers’ compensation insurance
Workers’ comp is required in almost every state for architecture businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal fees from employee injuries
Cyber insurance
Cyber liability insurance helps architects recover from data breaches and cyberattacks. It's strongly recommended for any small business that handles sensitive information.
- Client notification expenses
- Fraud monitoring services
- Data breach investigations
Commercial auto insurance
This policy helps cover the cost of property damage and injuries in an accident involving a vehicle owned by an architecture firm. Each state has its own requirements for auto liability insurance.
- Property damage caused by your car
- Bodily injuries from an auto accident
- Vehicle theft and vandalism
How much does architect insurance cost?
A small business with a few architects will pay less for insurance than a large company with a construction manager and several subcontractors.
Factors that insurance company underwriters look at when calculating your architect insurance premium includes:
- Architectural services offered
- Business property and equipment
- Location and business risks
- Business income
- Types of insurance purchased
- Policy limits, deductibles, and exclusions
- Claims history
- Years of experience
How do I get architect business insurance?
It's easy to get architect business insurance coverage and surety bonds if you have your company information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find the right coverage for your architecture firm, whether you work independently or hire employees.
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FAQs about architect insurance
Review frequently asked questions about liability insurance for architects and more.
Do I need business insurance to obtain an architect license?
While not usually required by state law to secure your architecture license, architect insurance coverage can safeguard your business, as well as qualify you for business contracts and commercial leases.
However, your local and county governments may have different insurance requirements, so it's best to check with their licensing offices for the specifics. Additionally, some clients won't sign an agreement with you unless you have the right insurance coverage.
Typically, architects must complete the following to obtain their architect license:
- Earn a degree accredited by the National Architectural Accrediting Board (NAAB)
- Document real-world experience through the Architectural Experience Program (AXP)
- Pass the Architect Registration Examination (ARE)
There's also typically an application fee, and architects must usually renew their license after a certain number of years have passed.
Do architects need general liability and professional liability insurance?
When building the risk management plan for your architecture firm, there are two types of business insurance you should consider carrying: general liability and professional liability.
- General liability insurance: This coverage is often the first policy architects consider, and is often required in order to sign a commercial lease. General liability helps protect your business from common third-party claims, such as accidental damage to a client's property, customer injuries that happen at your office, and advertising and personal injuries.
- Professional liability insurance: Also known as errors and omissions insurance for architects or E&O insurance, this policy safeguards your business if a mistake in your building plans causes a financial loss to your client or if a delay in the project pushes back the opening day for a client causing them to lose money. This coverage will help pay for the legal costs to defend your business.
Although not generally required by state law, carrying both general liability and professional liability policies will greatly protect you from many risks. This includes construction problems, client miscommunications, shifting project scopes, and other setbacks.
What other architect insurance policies and bonds should I carry?
In order to fully protect your architecture business, you may need additional types of coverage, including:
- License and permit bonds, which guarantee your architecture firm will complete a project in accordance with regulations and industry standards. However, in the event of a claim, you must pay back the full amount to the bond company.
- Commercial umbrella insurance provides additional coverage for liability claims made on general liability, commercial auto, or employer’s liability insurance, once the underlying policy limit has been met.
It's also important to know that no single policy covers construction defects outright. However, certain policies—like professional liability and general liability insurance—may offer limited protection depending on the nature of the defect and how it occurred.