Engineering business insurance costs vary significantly across coverage types, and understanding these differences helps with budget planning. MoneyGeek's analysis shows monthly premiums range from $38 for workers' compensation to $104 for professional liability coverage.
How Much Does Engineering Business Insurance Cost?
Business insurance for engineering firms starts at $38 per month. Your specific rate will depend on factors like your company size, location and coverage needs.
Discover cheap engineering business insurance below.
Select your industry
Updated: August 18, 2025
Advertising & Editorial Disclosure
Key Takeaways
Engineering business insurance costs range from $38 to $104 monthly, with general liability starting at $40 and professional liability reaching $104.
Your engineering insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable engineering business insurance costs.
Average Engineering Business Insurance Cost Overall
| BOP | $49 |
| General Liability | $40 |
| Professional Liability (E&O) | $104 |
| Workers' Comp | $38 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Engineering Business Insurance Cost for General Liability Coverage by State
Your engineering business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $35 monthly (versus the $40 national average), while Hawaii costs $48 monthly.
| Alabama | $39 |
| Alaska | $41 |
| Arizona | $38 |
| Arkansas | $38 |
| California | $45 |
| Colorado | $40 |
| Connecticut | $44 |
| Delaware | $43 |
| Florida | $43 |
| Georgia | $41 |
| Hawaii | $48 |
| Idaho | $38 |
| Illinois | $44 |
| Indiana | $39 |
| Iowa | $38 |
| Kansas | $39 |
| Kentucky | $37 |
| Louisiana | $48 |
| Maine | $35 |
| Maryland | $38 |
| Massachusetts | $42 |
| Michigan | $38 |
| Minnesota | $38 |
| Mississippi | $40 |
| Missouri | $39 |
| Montana | $40 |
| Nebraska | $38 |
| Nevada | $45 |
| New Hampshire | $40 |
| New Jersey | $45 |
| New Mexico | $40 |
| New York | $47 |
| North Carolina | $35 |
| North Dakota | $35 |
| Ohio | $37 |
| Oklahoma | $39 |
| Oregon | $37 |
| Pennsylvania | $46 |
| Rhode Island | $44 |
| South Carolina | $41 |
| South Dakota | $37 |
| Tennessee | $39 |
| Texas | $40 |
| Utah | $38 |
| Vermont | $38 |
| Virginia | $36 |
| Washington | $46 |
| West Virginia | $42 |
| Wisconsin | $39 |
| Wyoming | $37 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Engineering Business Insurance Cost for Workers’ Compensation Coverage by State
Your Engineering business cost for workers' compensation varies by state. North Carolina offers the lowest rates at $33 monthly and New York the highest at $45 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $37 |
| Alaska | $35 |
| Arizona | $36 |
| Arkansas | $36 |
| California | $42 |
| Colorado | $38 |
| Connecticut | $41 |
| Delaware | $41 |
| Florida | $42 |
| Georgia | $39 |
| Hawaii | $40 |
| Idaho | $36 |
| Illinois | $42 |
| Indiana | $37 |
| Iowa | $36 |
| Kansas | $37 |
| Kentucky | $36 |
| Louisiana | $44 |
| Maine | $33 |
| Maryland | $36 |
| Massachusetts | $40 |
| Michigan | $36 |
| Minnesota | $36 |
| Mississippi | $39 |
| Missouri | $38 |
| Montana | $38 |
| Nebraska | $36 |
| Nevada | $44 |
| New Hampshire | $38 |
| New Jersey | $43 |
| New Mexico | $38 |
| New York | $45 |
| North Carolina | $33 |
| Oklahoma | $36 |
| Oregon | $36 |
| Pennsylvania | $44 |
| Rhode Island | $42 |
| South Carolina | $39 |
| South Dakota | $36 |
| Tennessee | $37 |
| Texas | $38 |
| Utah | $36 |
| Vermont | $37 |
| Virginia | $35 |
| West Virginia | $40 |
| Wisconsin | $38 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Engineering Business Insurance Cost for Professional Liability Coverage by State
Like other insurance types, cost for professional liability varies by state for engineering businesses. The national average runs $104 monthly, with North Carolina offering the lowest rates at $90 and Pennsylvania charging the most for E&O insurance at $120 monthly.
| Alabama | $102 |
| Alaska | $92 |
| Arizona | $99 |
| Arkansas | $102 |
| California | $116 |
| Colorado | $103 |
| Connecticut | $114 |
| Delaware | $109 |
| Florida | $114 |
| Georgia | $107 |
| Hawaii | $98 |
| Idaho | $99 |
| Illinois | $112 |
| Indiana | $99 |
| Iowa | $98 |
| Kansas | $101 |
| Kentucky | $95 |
| Louisiana | $114 |
| Maine | $92 |
| Maryland | $101 |
| Massachusetts | $108 |
| Michigan | $99 |
| Minnesota | $97 |
| Mississippi | $105 |
| Missouri | $105 |
| Montana | $102 |
| Nebraska | $99 |
| Nevada | $118 |
| New Hampshire | $104 |
| New Jersey | $117 |
| New Mexico | $104 |
| New York | $120 |
| North Carolina | $90 |
| North Dakota | $91 |
| Ohio | $97 |
| Oklahoma | $96 |
| Oregon | $97 |
| Pennsylvania | $120 |
| Rhode Island | $115 |
| South Carolina | $108 |
| South Dakota | $98 |
| Tennessee | $102 |
| Texas | $105 |
| Utah | $102 |
| Vermont | $100 |
| Virginia | $95 |
| Washington | $119 |
| West Virginia | $110 |
| Wisconsin | $102 |
| Wyoming | $98 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Engineering Business Insurance Cost for BOP Coverage by State
Business owners' policy rates show state-by-state variation for engineering business insurance costs. Monthly premiums range from $41 in North Carolina to $56 in New York.
| Alabama | $47 |
| Alaska | $44 |
| Arizona | $46 |
| Arkansas | $47 |
| California | $54 |
| Colorado | $48 |
| Connecticut | $52 |
| Delaware | $52 |
| Florida | $54 |
| Georgia | $49 |
| Hawaii | $52 |
| Idaho | $46 |
| Illinois | $54 |
| Indiana | $48 |
| Iowa | $46 |
| Kansas | $48 |
| Kentucky | $46 |
| Louisiana | $55 |
| Maine | $42 |
| Maryland | $46 |
| Massachusetts | $51 |
| Michigan | $46 |
| Minnesota | $46 |
| Mississippi | $49 |
| Missouri | $47 |
| Montana | $49 |
| Nebraska | $46 |
| Nevada | $55 |
| New Hampshire | $49 |
| New Jersey | $55 |
| New Mexico | $50 |
| New York | $56 |
| North Carolina | $41 |
| North Dakota | $42 |
| Ohio | $45 |
| Oklahoma | $47 |
| Oregon | $45 |
| Pennsylvania | $55 |
| Rhode Island | $53 |
| South Carolina | $50 |
| South Dakota | $45 |
| Tennessee | $46 |
| Texas | $48 |
| Utah | $46 |
| Vermont | $47 |
| Virginia | $44 |
| Washington | $55 |
| West Virginia | $51 |
| Wisconsin | $48 |
| Wyoming | $45 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Engineering Business Insurance Cost
Insurance companies look at several factors to determine your engineering business insurance costs. Understanding these elements helps you create a more accurate budget. We break down these important cost factors below.
Geographic location
Your business location affects workers' compensation rates and liability costs, depending on local regulations and claim patterns. Engineering firms in earthquake-prone regions or areas with strict building codes face higher premiums, while state-specific professional licensing requirements create rate variations.
Safety record and claims History
Previous claims impact future premiums, often for three to five years. A single professional liability claim involving design errors or project delays can substantially increase your general liability rates at renewal.
Types of projects undertaken
High-rise buildings and infrastructure projects carry greater liability risks than residential or small commercial work. Bridge or tunnel projects expose firms to catastrophic failure risks, while government contracts often require higher coverage limits.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding professional engineers increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Structural engineering services typically carry higher premiums than mechanical or electrical design due to catastrophic failure risks. Firms offering construction management or design-build services face additional liability exposure compared to pure design work.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having a greater exposure to claims. A solo engineering consultant earning $150,000 annually pays less than a multi-discipline firm with $2 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and software values
More valuable engineering equipment and software require higher coverage limits, increasing your premiums. A firm using advanced modeling software and specialized testing equipment worth hundreds of thousands will pay more than one using basic design tools.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs.
How to Get Cheap Engineering Business Insurance
Smart shopping and risk management strategies can lower your engineering business insurance costs. These methods will help reduce your premiums now and as your safety record improves.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your engineering firm needs prevents overpaying for unnecessary coverage. Professional liability insurance protects against design errors, while general liability covers third-party injuries. Commercial property insurance safeguards your equipment and office space.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Compare quotes from at least three insurers to find the best rates. Consider working with an independent agent who can shop multiple carriers for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining professional liability, general liability and property coverage with one carrier typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out of pocket for small claims, but save money on regular payments. Consider your firm's financial capacity when selecting deductible amounts.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up quickly. Paying your premium annually often earns you a discount and eliminates these extra charges. Budget for annual payments to maximize your savings.
- 6
Review and adjust your coverage annually
Your insurance needs change as your engineering firm grows. Review your coverage yearly to ensure it matches your current operations. Remove unnecessary coverage and adjust limits based on your project size and complexity.
Insurance for Engineering Business Cost: Bottom Line
Engineering business insurance costs range from $38 to $104 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly help you find more affordable rates.
Engineering Business Insurance Cost: FAQ
Insurance costs are a top concern for engineering business owners, so we've gathered expert answers to common questions about coverage pricing and requirements.
What is the cheapest type of engineering business insurance?
Workers' compensation insurance costs $38 monthly, making it the most budget-friendly option. However, most engineering firms need general liability insurance ($40 monthly) to protect against customer injuries and property damage.
How much can I save by bundling my engineering business insurance policies?
Bundling multiple policies through a single insurance carrier offers the best savings. Combining general liability, commercial auto and property coverage can reduce your monthly insurance costs significantly.
What factors make my engineering business insurance more expensive?
General liability insurance is the most budget-friendly option for engineering businesses, with average monthly premiums starting at $40. This basic coverage protects against common workplace accidents and property damage.
Factors affecting engineering insurance costs include, for instance, claims history, location risks, facility types, and staff size.
Should I choose a $500 or $2,500 deductible for my engineering business insurance?
Higher deductibles lower your monthly insurance costs but require more out-of-pocket expenses when filing claims. Base your choice on available cash reserves and claim frequency expectations.
How much does workers' compensation cost for engineering businesses by state?
Workers' compensation costs for engineering businesses vary from $33 monthly in North Carolina to $45 monthly in New York, with rates determined by state regulations and risk factors.
Is business owner's policy (BOP) worth the extra cost for engineering companies?
BOP insurance costs engineering companies $49 per month on average nationwide. The combined coverage package offers better value than purchasing separate policies, making it a worthwhile investment for growing firms.
How often should I shop around for engineering business insurance quotes?
Review your engineering business insurance annually during renewal time. Compare at least three quotes to find better rates, particularly if your business has grown or changed services.
How We Determined Engineering Business Insurance Costs
We collected engineering business insurance quotes from companies across different states. To make sure we compared apples to apples, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small engineering businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the engineering industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.