As an architect, you are responsible for designing and conceiving buildings according to what your client wants. You also work with other contractors on-site to build different residential or commercial structures. Even though this profession doesn’t condone any mistakes, they still happen.
Working with different people also creates some risks. In case of any mistakes that affect the quality of the building, your client can file a claim against you. This is why it is vital to have architect insurance that protects you against such claims.
We will discuss details about this insurance policy and what it covers. Furthermore, we will talk about architect insurance costs to give you an idea of how much you can spend on it. Lastly, we will discuss some of the best architect insurance companies offering comprehensive coverage.
Architect Liability Insurance
This insurance policy protects your firm against claims of property damage or bodily injury caused by your business. For instance, when a client gets injured at your office, architect liability insurance will protect you. The policy will cover their medical expenses and other related costs. Architect liability insurance is also important because it protects your business from claims of slander and libel. It is crucial to note that this insurance cover does not protect you against claims from your professional services.
Architect Professional Liability Insurance
Architect professional liability insurance protects your architectural firm and employees against professional-related claims. For instance, when you make an error or act negligently, professional insurance for architects will protect you from emerging claims. Professional liability insurance is different from liability insurance in the sense that it only covers claims arising from your activities as a professional architect.
On the other hand, general liability covers things like property damage or accidents that result in injury. Furthermore, general liability insurance policies are relatively standard compared to professional liability insurance. Professional liability insurance has more specialized and diverse policies due to the comprehensive professional practices associated with architects. For better understanding, here are some of the areas professional liability insurance covers.
Client Expectations
Most claims arising from professional liability result from the architect’s failure to manage the client’s expectations. Most clients demand unreasonable results due to their limited experience in the architectural field. Business insurance for architects will protect you against such claims and help avoid costly expenses.
Scope of Work
As a skilled architect with a lot of experience, you cannot deliver below-average projects that are way below expectations. However, some uneducated clients might want you to do things according to their wishes. While they think they are correct, what they want could be impossible from a professional point of view. This results in numerous misunderstandings in the course of the project. No matter how much you try to clarify things, a client might file a claim against you. Architects and engineers’ professional liability insurance will protect you against such claims.
Non-traditional Practices
Young and inexperienced architects might choose to custom-build and design their projects in a bid to be innovative. If these architects are your employees, you could face a claim. With architects PI insurance, the financial and reputation damage is limited. Therefore, it is essential to purchase this insurance policy for your architectural business or investment.
Architect Professional Liability Insurance Cost
The cost of architect professional liability insurance is slightly higher than general architect insurance. This is because the risks covered by this policy are common and tend to be costly. The average cost of insurance for architectural designers is $250 per month. Its average annual cost is $2050. It is important to note that different factors determine the cost of this insurance policy. Some of them include;
Type of Project
Some projects cost more than others. For example, a project that involves the construction of a multistorey building is susceptible to lawsuits. Projects like skate park construction could result in more injuries.
Claims History
This policy refers to the claims history of the architectural firm in question and claims related to the project. If the project’s claim history is high, the insurance cost is higher.
Architects Errors and Omissions (E&O) Insurance
When a client files a claim against your architectural business, you need to prepare for consequences. Generally, lawsuits against architects are costly and could result in severe financial losses. Without architects errors and omissions insurance, you risk losing a lot of money on settlements.
Whether you make an omission on the project’s blueprint or the client doesn’t like the color scheme you used, architect e&o insurance can help pay legal fees that could otherwise affect your operations. Not all building designs go precisely as planned, which means the chances of a lawsuit are high. Therefore, you should get architect insurance cover to protect your architectural business against these claims.
Best Architect Insurance Companies
Due to the many risks associated with architectural businesses, there are many insurance companies offering architect insurance. However, the quality and coverage vary from one insurance company to another. Therefore, you need to go for a reputable insurance company with the best policy. Here are some of the best insurance companies.
AIG Architects & Engineers Liability Insurance
AIG is one of the oldest insurance companies in the world. It is a prestigious company offering some of the best policies and coverage. As an architect, you can best significantly from their policies.
AIG Policy Details
AIG offers comprehensive professional liability insurance for architects. This policy covers a wide range of risks associated with the profession, like errors and omissions.
Pros
- Comprehensive coverage
- Fast claim responsiveness
- Available in most countries
Cons
- Some claims are not covered
Average cost: $180
Best for: Freelance architects and architectural contractors
Coverwallet Architect Liability Insurance
Coverwallet Insurance company has been in operations for many years. Thanks to its comprehensive insurance cover, Coverwallet enjoys massive membership and loyalty. The company operates in several countries, including the US.
Coverwallet Policy Details
Coverwallet offers tailored architect liability insurance that covers a wide range of claims. Apart from general liability insurance, you can also have professional liability insurance for architects.
Pros
- Offers tailored architect insurance
- Available in several countries
- You can buy it online in no time
Cons
- Claim responsiveness could be slow
Average cost: $150
Best for: Online architect insurance quote comparison
The Hartford Architect Insurance
The Hartford Insurance Company is a prestigious company with unique insurance cover. As an architect, you can benefit immensely from their unique policies.
Hartford Policy Details
It offers professional liability insurance that helps you protect your architectural design business from claims arising from professional services. These claims could be a result of negligence or omissions.
Pros
- Affordable
- Monthly payments with no extra fees
- Offers tailored architect insurance
Cons
- Not available in some countries
Average cost: $145
Best for: Larger architects with employees.
Hiscox Architect Insurance
Hiscox is an established insurance company with global prominence. It offers comprehensive insurance cover for a wide range of businesses, including architects. No matter your location, you can purchase an insurance policy from Hiscox because it has offices in most countries.
Hiscox Policy Details
If you want a comprehensive insurance cover for your architectural business, consider purchasing one from Hiscox. They offer both general and professional liability insurance for architects. However, the cost of these policies could be high because they are very comprehensive.
Pros
- Available in many countries
- Offers tailored insurance policies
- Quick claim responsiveness
Cons
- Can be costly
Average price: $195
Best for: International and home-based architects.
Next Architect Liability Insurance
This is a reputable insurance company with lucrative policies. Thanks to its comprehensive and fast coverage, Next Architect has spread its services to many countries.
Next Architect Policy Details
This insurance company offers several architect insurance policies. Whether you want general or professional liability insurance, you will have it here.
Pros
- Offers the fastest coverage
- Comprehensive insurance cover
- Tailored cover for architects
Cons
- Not available in some countries
Progressive Architect Liability Insurance
Progressive Insurance Company has been in existence for many years. Over that period, it has established itself as a reliable and reputable insurance company. It offers insurance cover for a wide range of businesses, including architects.
Progressive Policy Details
Progressive Insurance offers the best policies for architects. Their professional liability insurance policy covers hundreds of claims, protecting your business against lawsuits.
Pros
- Fastest coverage
- Comprehensive insurance cover
- Affordable
Cons
- Not available in many countries
Average cost: $140
Best for: A best overall architect insurance policy.
