Lowering Your Engineering Insurance Cost Without Cutting Coverage
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 hour ago
- 2 min read
Engineering firms, whether civil, mechanical, structural, electrical, industrial, or design‑build, face some of the highest professional liability exposures of any service‑based business. Because one design error, miscalculation, or specification oversight can trigger costly claims, engineers often assume insurance costs are fixed. The good news? You can lower the cost for engineering business insurance without reducing coverage. Here are proven strategies to reduce premiums while maintaining full protection.
1) Strengthen Your QA/QC (Quality Assurance & Quality Control) Programs
Underwriters price risk heavily based on a firm’s internal controls. Documented QA/QC procedures help engineering firms qualify for better pricing, including:
Peer review processes
Checklists for plans, drawings, and calculations
Version‑control procedures for CAD/Revit files
Formal sign-off workflows before deliverables go out
Firms with strong QA/QC controls face fewer claims, translating into lower long‑term premium.
2) Improve Contract Review and Risk Transfer Processes
Many engineering claims stem from poorly reviewed contracts. To reduce your engineer business insurance costs:
Avoid assuming responsibility for contractor errors
Remove broad indemnification clauses
Ensure scope and deliverables are clearly defined
Require Certificates of Insurance (COIs) from subcontracted engineers or designers
Good contract language prevents claims, and claims directly impact premium for years.
3) Use Deductibles Strategically (Without Reducing Coverage Limits)
Raising deductibles on:
can lower premiums without reducing your limits. Choose deductibles your firm can comfortably absorb in the event of a claim.
4) Improve Cyber-security Controls
Engineering firms hold sensitive data: blueprints, models, surveys, specifications, client contracts, and vendor credentials. Better cyber-security → better cyber liability pricing.
Underwriters reward firms that use:
Multi‑factor authentication (MFA)
Encrypted backups
Endpoint monitoring
Strong password policies
Phishing‑prevention training
Cyber improvements can reduce premiums across multiple coverages.
5) Maintain a Clean Claims History
Every claim, especially an E&O claim, can raise premiums for several years. Preventing claims is the single most powerful lever for reducing insurance costs:
Conduct internal audits
Redline contracts carefully
Track lessons learned from past projects
Use job-site observation reports to document conditions
6) Work With an Insurance Agency That Specialises in Engineers
The biggest mistake engineering firms make is working with generalist agents unfamiliar with:
E&O complexities
Contractual liability requirements
Certificates and endorsement wording
Multi‑discipline engineering risk
Project‑specific vs. practice policies
Wexford Insurance understands these exposures and works with carriers who specialise in engineering risks, helping you reduce premium without sacrificing coverage.
Get the Best Price on Engineer Business Insurance
Not all insurers understand engineering risks, design exposure, contract obligations, or discipline‑specific liability. Wexford Insurance partners with top‑rated carriers that specialise in engineer business insurance, helping firms secure the right coverage, limits, deductibles, and endorsements, at competitive pricing.
👉 Request your engineer business insurance quote from Wexford Insurance today and protect your contracts, reputation, and future.
