Architects & Engineers Liability Insurance (A&E) provides protection against design errors, omissions, or project delays that lead to client or third-party claims. Key coverage for licensed architects, engineers, and design-build professionals.
Architects & Engineers Liability Insurance
(A&E)
What Is Architects & Engineers Liability Insurance?
Architects & Engineers Liability Insurance is a specialized type of E&O coverage tailored to the design and construction industry. It protects professionals against lawsuits related to design flaws, structural errors, project delays, and failure to meet specifications.
Who Needs Architects & Engineers Liability Insurance?
Your designs, plans, and specs can directly impact safety, property value, and project timelines. If a client suffers financial losses because of your professional work, even a baseless claim can be financially devastating without coverage.
Common industries that often require Architects & Engineers Liability Insurance include:
- Architects and engineers
- Design-build contractors
- Landscape architects
- Surveyors and civil engineers
- Structural, electrical, and mechanical engineers
What Does Architects & Engineers Liability Insurance Cover?
Architects & Engineers Liability Insurance typically covers:
- Design errors or miscalculations
- Inaccurate project specs
- Code compliance issues
- Failure to deliver services as promised
- Legal defense, settlements, and judgments
What Doesn’t Architects & Engineers Liability Insurance Cover?
While Architects & Engineers Liability Insurance offers broad protection, it doesn’t cover:
- Faulty construction (covered under Contractors Insurance)
- Product or materials failure
- Intentional fraud or criminal acts
- Bodily injury or property damage
- Cost overruns not related to design errors
How Much Does Architects & Engineers Liability Insurance Cost?
The cost of Key Person Insurance varies based on factors like business size, industry, location, and claims history.
Key Cost Factors:
- Project size and scope
- Number of professionals and disciplines
- Annual revenue
- Claims history
Typical Cost Range:
- Small Design Firms: $1,500–$5,000/year
- Mid-size Firms: $7,500–$25,000/year
- Large, Multi-disciplinary Firms: $30,000+/year
Risk Management Tips
To minimize potential claims:
- Use written contracts that limit liability and clearly define deliverables.
- Confirm project specifications with clients in writing before execution.
- Maintain ongoing continuing education on code compliance and regulatory updates.
- Document all design changes and client approvals throughout the project lifecycle.
- Use industry-standard project management and modeling tools (e.g., BIM).
- Secure professional peer review for complex or high-liability designs.
Talk to An Expert
Our dedicated experts are ready to provide tailored insurance solutions to clients across a wide range of industries and specialized services.
Schedule a consultation to see how Alliance Risk can reduce your insurance risk.
– We look forward to partnering with you.