Best Engineering Insurance of 2022

Bryan Keith

Engineers face many risks during a project including missed deadlines, miscalculations, and property damage. Engineering insurance provides liability protection against potential lawsuits, claims of negligence, and professional mistakes. We’ve evaluated the best engineering insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

What is engineering insurance?  

You’ve worked hard to build your engineering business but you run the risk that the smallest miscalculation could steer your project in the wrong direction. There could be unexpected delays in a project and bad weather could postpone further work being carried out.

Engineering insurance can protect your business against financial losses and damages that can emerge due to legal action, property damage, and third-party personal injury.

Who needs engineering insurance?

Engineers, building inspectors, construction project managers, and land surveyors should consider taking out engineering insurance to protect their business against liability and damages.   

What insurance do engineering businesses need?  

When taking out engineering insurance, it’s important to consider different types of coverage and policies to adequately cover your business for legal liability and potential financial losses. The most common types of coverage for engineers are:

Professional liability (E&O) insurance

If you are responsible for a mistake that causes your client to lose money, professional liability insurance can protect your business against accusations of negligence and wrongdoing. For instance, a design error could cause personal injury or property damage, or deadlines could be missed due to unexpected events. These mistakes can result in legal action that could become costly and harm the reputation of your business. 

Professional liability insurance coverage can protect you against business errors, accusations of negligence, legal defense costs, legal judgments, breach of contract, damages, and missed deadlines.

Exclusions for professional liability insurance can include workplace accidents, employee injuries, property damage, intentional wrongdoing, medical expenses, and illegal activity.  

General liability insurance

Unexpected events can happen and general liability insurance can cover you for basic risk factors such as a customer getting injured while on business premises or property damage to a third party. While on a construction site for a client you could accidentally damage the property or a surveyor could slip and fall on the premises. 

Coverage for general liability insurance can include third-party bodily injury, third-party property damage, copyright infringement, medical costs, reputational harm, and legal costs for a lawsuit.

Common exclusions for general liability insurance include workers’ compensation for employee injuries and illnesses, commercial auto accidents, professional errors and mistakes, professional services, and damage to your business property.  

Workers’ compensation insurance:

If your business hires employees, most states require you to have workers’ compensation insurance to cover employee benefits. An employee working in an office could suffer from carpal tunnel syndrome or if on a construction site, the employee could slip and fall. Workers’ compensation insurance can help take care of medical expenses related to injuries on the job and paid time off. 

Coverage for workers’ compensation insurance can help cover disability benefits, death benefits, medical costs, rehabilitation expenses, retraining, and lost wages. 

Exclusions to coverage can include non-work-related injuries and medical costs if the employee had a pre-existing condition.  

Commercial property insurance:

If you own or rent physical space for your business, you should consider commercial property insurance. Unexpected events can damage your business property where a fire could temporarily shut down your premises until repairs are complete. Commercial property insurance can help pay for the cost of repairing and replacing damaged equipment and loss of business income due to interruption. 

Commercial property insurance coverage can include damage that results from covered events such as fire, vandalism, explosions, and falling objects.

Exclusions can include intentional damage to business property by employees, flood and earthquake damage.

What are the limits of engineering insurance?

When you take out an engineering insurance policy, your limits will determine the maximum amount you can claim in a given policy period. Limits can depend on the type of policy you take out and the coverage level best suited to the size of your business. 

Limits for professional liability and general liability insurance can average $1 million per occurrence. Policies with a per-occurrence limit cover you for a maximum for each claim submitted. An aggregate limit covers you for a maximum amount per policy period.

How much does engineering insurance cost?

Several factors go into the calculation of engineering insurance, and policy premiums can vary from one business to another depending on the services provided. Coverage for general liability insurance can average $40 per month and professional liability insurance can average $155 per month. 

Here are some factors that insurers will consider when providing a quote:

  • Payroll: The number of employees that are part-time or full-time can impact your insurance premium. With more employees, there is a higher risk of errors and accidents, which would need to be accounted for in the benefits provided in workers’ compensation insurance. 
  • Deductibles: Depending on the size of the company, deductibles can go up to a few thousand dollars. The higher your deductibles, the lower your insurance premium. 
  • Claims history: Frequent claims with large payouts can attract higher premiums compared to smaller claims. 
  • Services: The nature of your engineering work will be taken into account by the insurer as different specialties have various levels of risk associated with the job. If there is a high risk of lawsuits and claims from clients, you can expect to pay a higher premium.
  • Business size: As your business grows so will the number of employees which can increase the chances of accidents and mistakes. Consequently, the premium is likely to be increased for your policies. 
  • Policy limits: The more extensive your insurance policy, the higher the premium. Larger businesses could benefit from higher coverage limits due to increases in risk factors.
  • Business location: If your business is located in an area that attracts a high rate of lawsuits, you can expect to pay a higher premium.

How to choose the best engineering insurance

When looking for the best engineering insurance policy, here are some key factors to consider before you make a purchase:

  • Read the fine print: It’s important to read the terms and conditions of your policy to ensure that you have adequate coverage. If you are covered by your employer’s policy, it can be worthwhile to double-check that you are sufficiently covered for liability. 
  • Compare providers: When looking for an insurer, it’s a good idea to compare multiple policies to find the best engineering insurance plan for your business needs. If you are unsure whether the services provided by your business are covered, it’s a good idea to ring the insurer for clarification. 
  • Umbrella policies: Larger businesses that generate more revenue could benefit from umbrella policies. If you believe that your insurance claims risk exceeding policy limits, umbrella insurance can help fill the gap and extend coverage adding an extra layer of protection.  
  • Consider legal requirements: Some states can require businesses to carry certain types of coverage and clients may also request to see proof of insurance before they hire you for a project. If you’re renting a commercial building, the landlord may request to see proof of general liability insurance before allowing you to sign the lease.