How Much Does Engineering Business Insurance Cost? 2026 Rates

U.S. engineering businesses can expect to pay between $504 and $768 annually for comprehensive business insurance, averaging $42 to $64 per month. The primary cost drivers are business size, services offered, location, number of employees, project types, equipment value, claims history, coverage limits, and safety practices.

How Much Does Engineering Business Insurance Cost?

On average, an engineering business in the U.S. can expect to spend between $504 and $768 per year for a complete insurance package, which works out to roughly $42 to $64 each month. However, your actual premium may be higher or lower depending on the specific needs of your business, as these are just estimated business insurance costs. 

If you run an engineering business, having the right insurance is essential to protect your company from accidents, property damage, or other mistakes. But many business owners wonder how much it will actually cost. 

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Type of engineering work (affects professional liability and general liability. 
• Revenue and project volume (affects general liability and professional liability)
• Value of equipment and office property (affects commercial property insurance)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Knowing these factors can help you figure out the right insurance coverage and plan your budget more accurately for protecting your engineering business. 

Average Engineering Business Insurance Costs For Coverage Types

Insurance for engineering business isn’t just one policy, it’s made up of different types of coverage that protect your business in various ways. Each type of insurance has its own cost, and the price can vary based on your business size, risks, and projects. 

• General liability insurance: $42 per month
• Business owner’s policy: $50 per month
• Workers’ compensation insurance: $41 per month
• Commercial auto insurance: $96 per month
• Professional liability (E&O) insurance: $161 per month

General Liability Insurance

The average cost of general liability insurance for an engineering business is about $42 per month.

General liability insurance helps protect your engineering business from everyday accidents and mistakes that could lead to claims. It also covers things like legal expenses, medical bills, and repairs related to these incidents. Because unexpected accidents can happen at any time, general liability insurance gives your business an important layer of financial protection. 

Factors that influence the cost include the business size, location, customer traffic volume, and previous claims history.

Policy limits: $1 million per occurrence and $2 million aggregate.

The per-occurrence limit is the most your insurance will pay for one covered event. The aggregate limit is the total amount the insurer will pay for all claims during the whole policy period, usually one year. 

Here’s a look at the average annual premiums for 10 different states:

Note: These are illustrative averages for basic GL coverage on a small engineering firm; actual premiums vary with revenue, payroll, claims history, limits/deductibles, and carrier.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $50 per month for engineering business.

A business owner’s policy is a package that combines important types of insurance into one plan. It usually includes general liability and commercial property insurance. A BOP is often cheaper than buying each policy separately, which makes it a good option for many small and medium-sized engineering firms. 

Several factors impact the costs including, property value, location risk, business revenue, number of employees, and any optional endorsements like business interruption insurance.

Engineering business owners might pay more if they add extra protection, call endorsements, to their policy. These add-ons, like business interruption insurance or equipment breakdown coverage are helpful because they can cover your costs if a power outage or other problem shuts down your business for a while. 

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These averages represent small-to-medium engineering firms combining general liability and commercial property coverage under a BOP. Actual premiums depend on factors like business size, number of employees, office location, claims history, and coverage limits.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for an engineering business is around $41 per month.

Workers compensation insurance protects your employees and your business if someone gets injured or becomes sick because of their job. For engineering businesses, where employees may visit job sites, handle equipment, or work in potentially risky environments, this coverage is very important. 

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

In most states, it’s also required by law if you have employees, making it a key part of your insurance plan.

Here’s a look at the average annual premiums for 10 different states:

Note: These figures represent estimated annual premiums for a small engineering firm with moderate payrolls and standard coverage limits. Actual costs vary based on total payroll, employee roles (field vs. office), claims history, and each state’s workers’ comp rates.

Commercial Auto Insurance

The average cost of commercial auto insurance for an engineering business is about $96 per month.

Commercial auto insurance protects any vehicles your engineering business uses for work, such as trucks, cars, or vans. This insurance can pay for repairs, medical bills, or even legal fees if needed. If your business relies on driving on job sites, meetings, or transporting equipment, commercial auto insurance is an important way to keep your business safe and protected. 

Several factors impact commercial auto insurance costs for an engineering business, including how much coverage you choose, any extra options you add, such as additional insured endorsements, the number of vehicles you own, their total value, and the driving records of all employees allowed to drive them.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates assume coverage for a few business-owned vehicles used for site visits, client meetings, and equipment transport. Actual premiums vary based on driving records, vehicle types, mileage, location risk, and chosen liability limits.

Professional Liability Insurance

The average cost of professional liability insurance for an engineering business is about $161 per month.

Professional liability insurance protects your engineering business if a client claims you made a mistake in your work. This could include errors in designs, incorrect calculations, or advice that leads to a problem or financial loss for the client. 

For engineers, this coverage is very important because even small mistakes can lead to costly claims. It gives your business financial protection and peace of mind. 

Several factors impact the cost of professional liability insurance which include things like the type and size of your business, your past claims, the kind of projects you work on, where your business is located, and how much coverage and deductible you choose.

Here’s a look at the average annual premiums for 10 different states:

Note: Professional liability insurance typically costs more for engineering firms than general liability, as it covers design errors, project delays, or professional mistakes. Actual premiums depend on firm size, project types, contract values, and prior claims history.

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 5 providers.

Note: These estimates are based on small-to-medium engineering firms with moderate project risk, few past claims, and standard policy limits (typically including general liability, professional liability, and property coverage). Actual premiums will vary depending on business size, location, annual revenue, number of employees, claims history, and selected coverage options.

What Factors Impact Your Engineering Business Insurance Costs?

When you apply for insurance, underwriters review your business to decide how much risk you carry and how much your coverage should cost. They look at several factors and understanding what underwriters consider can help you prepare, manage your risks better, and make sure you’re getting the right coverage at a fair cost. 

Type Of Engineering Work

Different types of engineering projects carry different risks. For example, civil engineering on large construction sites might cost more to insure than small office-based consulting work.

Location

Where your business and projects are located matters. Areas prone to natural disasters or with high theft rates usually have higher insurance costs.

Size Of Your Business

Bigger companies with more employees, equipment, and larger projects usually pay higher insurance premiums because they have more exposure to risk.

Equipment And Property Value

Expensive tools, machines, and office equipment increase your property insurance costs. You might also add extra coverage for things like equipment breakdown.

Claims History

If your business has made many insurance claims before, your rates will likely be higher. A clean record can help you get lower prices.

Policy Limits And Deductibles

Choosing higher coverage limits gives you better protection but costs more. Picking a bigger deductible lowers your premium but means you pay more out-of-pocket if something happens.

How To Lower Your Engineering Business Insurance Costs

Insurance is important for protecting your engineering business, but it doesn’t have to be expensive. There are several simple steps you can take to reduce your premiums while still getting the coverage you need. 

1. Look For Package Deals

Some insurance companies offer bundles that combine several types of coverage into one plan. Buying these packages is usually cheaper than purchasing each policy separately, so you can save money while still getting good protection.

2. Reduce Your Risks

The safer your engineering business is, the less you may pay for insurance. You can reduce risks by training employees, keeping equipment in good condition, and following safety rules. Fewer accidents and claims often lead to lower premiums.

3. Increase Your Deductible

If you choose a higher deductible, your monthly or yearly insurance cost usually goes down. Just make sure you can afford the deductible if you need to file a claim. 

4. Pay Annually

Paying your insurance bill once a year is often cheaper than paying monthly. Many insurance companies add extra fees for monthly payments, so paying annually can save you money.

5. Shop Around

Different insurance companies offer different prices and coverage options. By getting quotes from several providers, you can compare your choices and find the best deal for your business.