Do Engineering Consultants Need Insurance?
Architects and engineers work with clients to design building plans or ensure things work. We know engineering firms face unique challenges on top of the common risks many small business owners face, like property damage or bodily injury claims. That’s why getting the right coverage, like liability insurance for engineers, is important. See how adding business insurance to your risk management plan can help you run a successful small business.
What Insurance Coverage Might Engineering Companies Need?
Many engineers start with a Business Owner’s Policy (BOP) for their insurance needs. It combines three types of insurance coverage that can help protect your business from different risks:
General liability insurance helps cover claims that your business caused bodily injury or property damage to someone else.
Commercial property insurance helps protect the owned or rented building, tools, equipment and inventory you use to operate your engineering business, including:
- Computers
- Protective equipment like goggles, gloves and a helmet
- Saws
- Hammers
- Toolboxes
- Jacks
- Wrenches
Business income insurance helps replace lost income if you can’t operate your engineering business temporarily because of a covered property loss.
If you drive business-owned vehicles for work, you may also need commercial auto insurance to help protect you and your employees on the road.
While a BOP creates a good foundation for protection, you may want to consider other types of coverage to help protect your business from other claims. Keep in mind that insurance coverage needs can vary based on your services, projects and business size.
For example, many engineers consider professional liability insurance, which can help cover legal costs, settlements and judgements if a client claims that a mistake or error in your professional services caused them financial loss. This coverage is also known as errors and omissions insurance or E&O insurance. If your engineering business needs professional liability insurance, you can find an agent to learn more and get a quote.
