What Insurance Do Architects Need?

Architects face some unique and complex risks. You work with contracts, codes, clients, and big dollar projects. The good news is that your insurance program does not have to be complicated. With a few core policies from the right insurance carriers, you can protect your firm from most of the major financial threats you face.

In this article, I will walk through the essential insurance policies architects need, share real pricing examples, and cover some additional protection that is worth considering as your firm grows.

The Two Core Policies Every Architecture Firm Needs

Most architecture firms can cover their primary risks with just two policies:

• General liability insurance
• Architect professional liability insurance

Let us look at what each one does and why they matter.

Get A Quote For Architect Insurance

Call us or get a quote online. Same-day quotes for most firms.

Get A Callback

Our Offices Are Currently Closed

Online Quote

Online Quote

To start your quote online, please select the State where you do business.

- Select a State -AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Start Quote

General Liability Insurance For Architects

General liability is your basic business liability policy. It covers situations where your firm is accused of causing bodily injury or property damage to others.

For architects, this often includes:

• Incidents that happen while visiting jobsites
• Accidents at trade shows or industry events
• Premises liability at your office if a visitor is injured
• Certain third party property damage claims

General liability is usually very affordable for architects because your operations are relatively low hazard compared to contractors or manufacturers.

Some of our favorite general liability carriers for architects are:

• Chubb
• The Hartford

These companies tent to offer solid coverage, competitive pricing, and good claim handling for professional firms.

Architect Professional Liability Insurance

Architect professional liability insurance (often called E&O or errors and omissions) is the single most important policy you will buy.

This policy covers lawsuits arising out of your professional services, such as:

• Allegations of improper or defective design
• Accessibility and ADA related design issues
• Code compliance
• Claims tied to the work of your subconsultants

Because this policy responds to claims about your work product, it is where most of your serious legal exposure lives. It is critical to choose an insurance company that:

• Specializes in design professionals
• Has an in-house claims team that understands architecture
• Is focused on resolving claims efficiently, not dragging you through endless litigation.

Some of the industry's best carriers for architect professional liability include:

• Berkley Design Professional
• CNA
• Hanover
• The Hartford
• AXA XL
• Travelers
• Beazley

These are not the only options, but they are carriers that consistently write quality coverage for architects.

Real Pricing Examples For Architect Insurance

To give you a realistic sense of cost, here are actual examples of combined general liability and professional liability pricing for architecture firms of different sizes and states.

A few key takeaways:

• Professional liability is usually the most expensive part of your liability program. that is because it covers the majority of the legal problems architects actually face.
• Pricing varies significantly from state to state, largely due to the legal climate and how state laws handle liability for design professionals.
• Once firms get well beyond one million in revenue, pricing becomes more customized. The specific types of projects you work on and your risk profile start to matter much more.

Important Additional Coverages To Consider

Beyone the core general liability and professional liability policies, there are several other coverages that can be ery important for architecture firms.

Cyber Liability Insurance

Cyber liability covers the financial and legal fallout if sensitive data under your control is compromised, including:

• Confidential design information
• Client payment or banking details
• Private employee information

A standalone, full cyber policy from a top-tier carrier can cost a few thousand dollars a year, depending on limits and your cyber controls. However, some professional liability carriers offer built-in or optional cyber limits at a very low cost.

For example, on a recent architect quote, Berkley Design Professional offered a $250,000 cyber limit for less than $20 per year as an add-on to the professional liability policy. At that price level, it is an easy decision even if you feel your cyber risk is relatively low.

Employment Practices Liability Insurance (EPLI)

If you have employees, employment practices coverage is another valuable protection. It responds to claims such as:

• Wrongful termination
• Discrimination against protected classes
• Harassment allegations
• EEOC related claims

In most cases, a standalone EPLI policy will give you broader coverage and better claim support. That said, many general liability carriers can add a more limited EPLI endorsement for a fairly small additional premium if you are looking for a budget friendly option.

Workers Compensation

Workers compensation is required in almost all situations where you have employees. The exact rules vary by state, but in practical terms, if you have staff you should assume you need workers comp.

The good news for architects is that workers comp is typically not very expensive. Architecture is enerally an office based profession, and claim frequency tends to be low.

In many cases we simply place workers comp with the same carrier that is insuring the general liability policy, which simplifies billing and coordination.

Need Help Insuring Your Architecture Firm?

If you are looking to insure your architecture firm, we would be happy to help.

At LandesBlosch, we:

• Offer some of the best architect professional liability products on the market
• Work with carriers that truly understand design professionals and will stand behind you in a claim
• Help you price our additional coverages like cyber, employment practices, and workers comp so you can make an informed decision.