Architect and Engineer E&O Insurance Saves Your Livelihood Instantly
Real-World Examples and Statistics
According to a survey by the American Institute of Architects, 60% of architecture firms reported a claim against them in the past decade, highlighting the prevalence of such issues in the industry1. Furthermore, the National Society of Professional Engineers notes that the average cost of defending a professional liability claim is around $50,000, not including any settlement costs2.
These statistics underscore the importance of having a robust E&O insurance policy. Without it, a single claim could potentially bankrupt a small firm or severely impact the financial health of a larger one.
Cost Considerations and Finding the Right Policy
The cost of E&O insurance varies depending on several factors, including the size of your firm, the types of projects you undertake, and your claims history. On average, small firms might pay between $1,000 and $3,000 annually for coverage, while larger firms could see premiums of $5,000 or more3. It's crucial to shop around and compare policies to find one that offers the best coverage for your needs at a competitive price.
When evaluating policies, consider the coverage limits, exclusions, and any additional services offered, such as risk management resources or legal defense support. Many insurers provide tailored policies specifically for architects and engineers, which can offer specialized coverage options that general liability policies might not include.