Business Insurance Requirements for Architects in Texas

As Texas' population continues to rapidly expand (it's been the fastest growing state for almost two decades), so too does its architecture industry. According to the Bureau of Labor Statistics, Texas has more than 8,000 architects, the third highest number in the United States. Dallas and Houston both rank in the top 10 for most architects in U.S. metro areas. To stay competitive and protect your assets, your firm will need business insurance.

Texas law doesn’t require architects to carry workers’ compensation insurance. However, employers can be held financially accountable for employees’ occupational injuries. Other work situations may call for additional policies. For example, most clients want proof of professional liability insurance before they hire a firm. Commercial landlords often require general liability insurance in their lease agreements. If you have a business-owned vehicle, you need commercial auto insurance to protect it.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read on to learn about common types of architect insurance and their cost. Or you can simply start an application to get your free quotes today.

Find the right insurance policy for your architecture firm

The most common architect insurance policies depend on a variety of factors, including number of employees, revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business structure.

General liability insurance: General liability insurance is the foundation of an architect’s business protection. Coverage extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: Many clients require proof of professional liability insurance before entering 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 work or a business discrepancy. If you work in a partnership with another architect or firm, make sure that your professional liability policy provides joint venture coverage. It can make sure each member is protected if the venture is sued.

Business owner's policy (BOP): Architects usually qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

Commercial auto insurance: 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 pay to repair your car when it is damaged by theft, weather events, or vandalism.

Texas workers' comp insurance: In Texas, workers' comp insurance is not required, even if you have employees. However, private employers who work on public projects must have this insurance. Even though you’re not required to have workers’ comp, you're still responsible for employee medical bills for injuries that occur on the job. This policy can help pay for medical expenses and lost wages associated with occupational injuries.

If you don't purchase workers’ compensation insurance in Texas, you are considered a "nonsubscriber” and are required to:

• File an annual notice with the Division of Workers' Compensation.
• Post notices in your personnel offices and workplaces.
• Tell each new employee in writing that they don't have workers' compensation.

Although being an architect isn't always a dangerous job, injuries do happen. Walking around construction sites, for example, can easily lead to accidents. Data from the Bureau of Labor Statistics show Texas architect injuries are typically infrequent and minor: falls, slips, and trips; overexertion; and roadway incidents. Architects missed a median amount of 5.4 days from work in 2016 when they experienced these injuries.

Business insurance costs for Texas architects

In Texas, the cost of architect insurance is slightly higher than the national median, according to an analysis of Insureon applications. Professional liability insurance costs Texas architects $3,579 a year ($298 per month), about $374 more than the national median cost for this policy. Though workers’ comp costs less in Texas than the national median rate, architects tend to pay more for their business owner’s policies, general liability, and combined general liability and professional liability. Make sure your firm takes advantage of bundled policy discounts whenever possible to make insurance more affordable.

Save time and money with Insureon

Insureon’s industry-leading technology helps architects in Texas save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in Texas and can answer your questions as you consider coverage.

To make the application go even quicker, have this information ready:

• Workforce details, such as the number and types of employees.
• Current and projected revenue.
• Business partnerships.
• Insurance history and prior claims.
• Commercial lease insurance requirements.

Apply for free architect insurance quotes today.