Insurance for architects in Michigan

General liability insurance is the foundation of an architect’s business protection, with coverage that extends to client injuries, client property damage, and advertising injuries. Most commercial leases require you to have this coverage.

Architects often qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability insurance at an affordable rate.

Many clients require proof of professional liability insurance before entering into contracts for professional services. This policy, also called errors and omissions insurance or architect liability insurance, can help cover legal expenses if you’re sued for unsatisfactory performance or a work mistake.

Michigan law requires employers with three or more employees to carry workers’ compensation coverage. This requirement also applies if you have one or more workers for 35 or more hours per week for 13 or more weeks. Independent contractors are not considered employees and don’t count toward this threshold.

Workers' comp can help pay for medical expenses associated with occupational injuries. It also provides disability benefits while the employee is unable to work.

If your architecture firm doesn’t have employees, you may choose whether to carry coverage for yourself. Workers' comp is recommended even for sole proprietors and independent contractors, as health insurance companies can deny claims for injuries related to your job.

Architects who store sensitive customer information, such as email addresses or credit card numbers, should invest in cyber liability insurance. This policy helps businesses recover from cyberattacks and data breaches. For example, it would cover the cost of notifying affected customers and providing them with fraud monitoring services after a breach.

Commercial auto insurance can cover vehicles your business owns or uses for business purposes. If your vehicle is involved in an accident, this policy can cover your liability for the other person's bodily injuries and property damage. It can also cover your vehicle when it is damaged by weather events, vandalized, or stolen.

The amount of coverage you need depends on the laws in your state. In Michigan, you need both bodily injury coverage and personal injury protection (PIP):

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $10,000 for property damage in another state
• $250,000 personal injury protection (or less for individuals enrolled in Medicare or Medicaid)

Architects might need a license or permit bond to obtain a license in their state or work on a project. These bonds are types of surety bonds that guarantee you will fulfill the terms of a contract and adhere to local regulations. The contract will usually specify the size of the bond that you need.

To get an architect license in Michigan, you need to submit an application, pay a fee, meet the requirements for education and experience, and pass an exam.