Several factors contribute to the cost of insurance for building design companies, including your business size and industry risk. Cost estimates are sourced from policies purchased by Insureon customers.
Building design professionals, such as architects, engineers, and interior designers, pay a median premium of less than $40 per month, or about $465 per year, for general liability insurance. This policy provides protection for third-party bodily injuries and property damage, along with advertising injuries.
Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your architecture or engineering office and equipment, and costs less than purchasing each policy separately.
Among building design businesses that purchase general liability insurance with Insureon, 39% pay less than $400 per year and 46% pay between $400 and $800 per year. High-risk businesses typically pay more for this policy.
Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.
Most building design businesses (90%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.
Building design professionals pay a median premium of about $45 per month, or $550 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
A BOP protects against third-party injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s licensed agents.
Building design professionals pay a median of less than $145 per month, or $1,705 per year, for professional liability insurance.
Also known as errors and omissions insurance, this policy protects businesses from client lawsuits claiming that work was unsatisfactory, negligent, late, or never completed. For example, it could protect an architect against a client’s claim that a design contained errors.
Among building design businesses that purchase professional liability insurance with Insureon, 18% pay less than $800 per year and 23% pay between $800 and $1,600 per year. Factors including the size of your company, your industry, and whether you’ve been sued in the past help determine the cost of this policy.
Most building design businesses (52%) choose professional liability policies with a $1 million per-occurrence limit and a $1 million aggregate limit. Another 21% choose policies with a $500K per-occurrence limit and a $500K aggregate limit. As your company grows, you may decide to increase your limits for better protection against client lawsuits.
To meet your state’s requirements and avoid penalties, building design businesses that have employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness. With a median premium of about $45 per month, or $565 per year for building design businesses, policy cost is determined by your number of employees and their occupational risk, among other factors.
Learn more about insurance costs for your profession:
Insureon’s building design business insurance agents work with top-rated U.S. carriers to find affordable coverage that fits your company. Apply today to compare multiple quotes with our free online application. Work with an account manager specializing in the unique risks of architects, engineers, and interior designers.