Insurance Requirements for Civil, Mechanical, and Electrical Engineers
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 hours ago
- 2 min read
Engineering firms, from civil design and mechanical consulting to electrical engineering and design‑build practices, face different risks depending on discipline, contract structure, and project exposure. Because clients, general contractors, government agencies, and commercial project owners require strict insurance provisions, understanding these requirements is essential before requesting an engineer business insurance quote.
Below are the primary insurance requirements engineering firms must meet across civil, mechanical, and electrical disciplines.
1) Professional Liability (Errors & Omissions) – Required by Nearly All Clients
Professional Liability (E&O) is the most critical coverage for engineering firms. It protects against:
Design mistakes
Calculation errors
Specification failures
Project delays or financial loss caused by engineering work
Stamped/sealed drawings and deliverables
Most engineering contracts require at least $1M per claim, and large civil/infrastructure projects may require $2M–$5M+ in limits, often with project‑specific endorsements.
2) General Liability – Required for Premises & Job site Exposure
General Liability (GL) protects engineers from non‑professional claims such as:
Bodily injury at a job site or office
Property damage caused by site visits
Premises liability
Civil engineers who frequently visit construction sites may face higher GL requirements than mechanical or electrical engineers working primarily in offices.
Common required limits: $1M / $2M with Additional Insured, Primary & Non‑Contributory, and Waiver of Subrogation endorsements.
3) Workers’ Compensation – Required When You Have Employees
If your engineering firm employs staff, PEs, EITs, survey crews, drafters, or office personnel, you are typically required to carry Workers’ Comp. Civil engineering firms with field staff have higher exposure than mechanical or electrical engineers who work primarily in design environments.
4) Commercial Auto & Hired/Non‑Owned Auto
If your team drives to job sites, client facilities, or municipal locations, Commercial Auto may be required. Even if employees use personal vehicles, many contracts require Hired & Non‑Owned Auto (HNOA) coverage.
5) Cyber Liability – Increasingly Required for Digital Engineering Deliverables
Engineering firms store:
CAD files
Revit/BIM models
Survey data
Client documents
Digital plans/specs
More project owners now require Cyber coverage to protect sensitive data. Limits typically range from $250k–$2M+ depending on project size.
6) Umbrella/Excess Liability – Required for Larger Contracts
Municipal, DOT, federal, hospital, industrial, and public‑infrastructure contracts often require Umbrella or Excess Liability to increase limits above GL, Auto, and Employers’ Liability.
Get the Right Coverage for Your Engineering Firm
Not every insurer understands the different risks between civil, mechanical, electrical, and design‑build engineering. Wexford Insurance partners with top‑rated carriers that specialise in engineer business insurance, helping firms secure the right limits, endorsements, and deductibles, fully aligned with contract requirements.
👉 Request your engineer business insurance quote from Wexford Insurance today and keep your projects, contracts, and reputation fully protected.
