How Much Does Engineer Insurance Cost? 2025 Rates

Engineering businesses in the United States typically spend between $480 and $720 per year on comprehensive business insurance. That equals about $40 to $60 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Project type – Complex or high-risk engineering projects generally cost more to insure than routine design work.
• Business size – Larger firms with multiple engineers and higher revenue face greater exposure than solo practitioners.
• Services offered – Specialized services such as structural engineering or environmental consulting often carry higher premiums than general advisory work.
• Risk level – Projects involving safety-critical systems or hazardous environments increase liability costs.
• Claims history – A clean record helps keep premiums lower, while past claims can raise rates.
• Coverage limits – Higher limits provide stronger protection but increase monthly premiums.

Why It Matters

Understanding these cost drivers helps engineers budget wisely and select coverage that matches their risks. With the right plan, they can protect their business, clients, and reputation without overspending.

How Much Does Engineer Insurance Cost?

On average, engineering businesses in the United States spend between $480 and $720 annually on comprehensive business insurance. That equals about $40 to $60 per month. These figures are only estimates, and your actual premium may be higher or lower depending on your specific situation.

Why Costs Differ

Every engineering firm faces unique risks, so there’s no one-size-fits-all price. A solo consultant working from home will typically pay far less than a large engineering company managing complex construction projects.

The type of work you do, the size of your team, the projects you handle, and even your business location all play a major role in shaping costs. For example, firms working on high-risk projects such as bridges or electrical systems may pay more for professional liability coverage. Likewise, businesses in cities with higher rates of lawsuits or accidents often face higher general liability premiums.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Number of employees – More staff increases workers’ compensation and liability requirements.
• Property size and value – Larger offices or costly equipment raise property coverage costs.
• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Why This Matters

Understanding these variables helps engineering businesses estimate insurance needs more accurately and budget for the real costs of protecting their operations. With the right coverage, you can safeguard your employees, projects, and reputation without overspending.

Average Engineer Insurance Costs For Coverage Types

When it comes to protecting your engineering business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most engineering businesses need.

General liability insurance: $40 per month

Business owner’s policy: $57 per month

Workers’ compensation insurance: $49 per month

Commercial auto insurance: $98 per month

Professional liability (E&O) insurance: $162 per month

General Liability Insurance

The average cost of general liability insurance for an engineering business is about $40 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a client visits your office to review project plans and trips over a loose cable, getting injured, general liability insurance would help cover their medical bills and any legal costs if they decide to sue.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business size, location, previous claims history, the kind of engineering work you do (like mechanical, structural, or civil), how much money your business makes, and any extra coverage you choose can all affect your insurance cost.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for engineering businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, project scope, claims history, geographic risks, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $57 per month for engineering business.

A BOP bundles general liability insurance with commercial property insurance. For example, if a fire breaks out in your engineering office and damages your computers, drafting equipment, and part of the workspace, the BOP would help pay for repairs and replace the damaged items.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the business value, location risk (such as flood or crime rates), business revenue, the kind of projects you work on, how many employees you have, and your area of expertise.

Average annual premiums by state:

Note: These estimates are based on average national Business Owner’s Policy (BOP) premiums for engineering businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, property value, claims history, geographic risks, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for an engineering business is around $49 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an engineer gets injured while visiting a construction site, like spraining their ankle by tripping over equipment, workers’ compensation would help cover their medical bills and a portion of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for engineering businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, geographic risks, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for an engineering business is about $98 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if your engineering firm uses a company vehicle to visit a job site and an employee gets into an accident on the way, commercial auto insurance would help cover the repair costs and any claims from the other driver involved.

Factors influencing the cost include how much coverage you choose, any extra protection you add, how many vehicles you have and how much they’re worth, and the driving history of anyone allowed to drive them.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for engineering businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, claims history, geographic risks, coverage limits, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for an engineering business is about $162 per month.

Professional liability insurance protects your business if a client claims you made a mistake, were careless, or didn’t do your job properly. It helps cover legal costs, settlements, or damages if you’re sued for things like design errors, missed deadlines, or bad advice.

For example, if your firm designs a structure and later the client claims there was a mistake in the plans that caused delays or extra costs, professional liability insurance would help cover the legal fees and any compensation you may have to pay.

Factors that affect professional liability insurance include the type of engineering work you do, the size of your business, your past claims or lawsuits, how much coverage you want, and the kinds of projects you handle.

Average annual premiums by state:

Note: These estimates are based on average national Professional Liability Insurance premiums for engineering businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, project scope, claims history, geographic risks, and insurer underwriting practices.

Engineering Business Insurance Costs By Provider

Engineering business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small-to-medium engineering firm insurance costs, typically including general liability, professional liability (errors & omissions), workers’ compensation, commercial auto, and property coverage. Actual premiums will vary depending on factors such as firm size, number of employees, type of engineering services offered, location, claims history, and coverage limits.

What Factors Impact Your Engineer Insurance Costs?

Insurance premiums for engineering businesses are determined by underwriters who assess your company’s overall risk profile. Several factors—from the type of projects you handle to your claims history—play a role in shaping what you’ll pay for coverage.

Type Of Engineering Services

Not all engineering work carries the same risks. Firms focused on basic design or consulting typically pay less than those managing large construction or infrastructure projects. High-risk specialties such as structural or electrical engineering often come with higher premiums.

Project Risk And Industry

The complexity and safety risks of your projects matter. Work on bridges, factories, or energy systems involves greater liability exposure than smaller residential or office projects, which can drive up insurance costs.

Location

Where your firm operates can significantly affect premiums. Businesses in busy cities or regions with frequent lawsuits often pay more for liability coverage. Likewise, firms in areas prone to floods, earthquakes, or other natural disasters face higher property insurance costs.

Size Of The Business

The number of employees, office space, and overall revenue directly impact premiums. Larger firms are more likely to face claims, which increases the cost of workers’ compensation, liability, and property insurance.

Equipment And Property Value

Owning expensive tools and technology—such as CAD workstations, plotters, or surveying devices—raises property coverage needs. Many firms also add equipment breakdown or loss protection, which increases premiums but provides essential security.

Claims History

Frequent claims or lawsuits signal higher risk to insurers, which can raise rates. A clean record often qualifies engineering firms for discounts and more favorable terms.

How To Lower Your Engineering Insurance Costs

Running an engineering business can be costly, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical strategies to reduce expenses without sacrificing protection.

1. Bundle Your Policies

One of the simplest ways to save is by combining coverage. Many insurers offer a Business Owner’s Policy (BOP) that packages general liability and property insurance at a reduced rate. Adding workers’ compensation through the same provider can unlock further discounts and streamline paperwork.

2. Ask About Discounts

Insurers often reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

3. Strengthen Safety Measures

Accidents drive up costs for both you and your insurer. Keeping walkways clear, ensuring proper lighting, training employees on safe practices, and regularly inspecting tools and equipment all help reduce liability risks. Demonstrating strong safety standards can lower premiums over time.

4. Build A Safer Work Environment

Workers’ compensation costs can be managed by focusing on employee safety. Training crews on safe tool use, proper lifting techniques, and emergency response reduces injuries. Fewer claims mean lower premiums.

5. Adjust Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just ensure your business can comfortably cover the out-of-pocket amount if a claim arises.