Short answer
When starting your own practice, most architects and engineers begin with professional liability and general liability or a business owner’s policy. Add workers’ compensation when you hire, and other coverage as clients ask. Prices depend on your firm, so treat the figures below as starting points and not promises.
What do you need on day one when starting your own practice?
A solo architect starting out sent us a builder’s insurance requirements and asked: “How much would this coverage cost me per year?” New owners want a simple list, so here it is.
- Professional liability: Covers claims about your design work.
- General liability or a business owner’s policy: Covers certain bodily injury and property damage claims. Many clients require it.
Professional liability is usually written on a claims-made policy. That means coverage depends on being insured when the claim is made.
Why start professional liability early?
The retroactive date on a new policy usually starts when you buy it. Work done before that date may not be covered. Buying early means more of your work falls within the policy. Pricing depends on your revenue, services and the carrier. Our professional liability cost tool shows how we approach it.
What does general liability cost for a solo firm?
One client asked whether small firms carry general liability. Our answer was that it can start at around $500 to $1,000 a year. A business owner’s policy can combine general liability with property coverage. Your price depends on your operations and the carrier.
What changes when you hire?
When you hire, workers’ compensation comes into play. Thresholds vary by state and by employee type, so ask your agent before your first hire. One South Carolina client told us the state didn’t require it until they hit four employees. They then asked us to backdate a policy. We told them backdating close to 30 days may be refused.
Employment practices liability, or EPLI, is something many firms add later as they grow.
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Get a Quote →What happens when clients start asking?
Clients often ask for additional insured status, waivers of subrogation or higher limits. Those requests are a sign to send the contract to your broker. A solo New York architect received one of these requests soon after starting out. Early review keeps you from agreeing to something your policies can’t deliver.
What is nice to have early?
- Hired and non-owned auto: Useful if you drive your own car to sites. We quoted roughly $250 to $500 in one case.
- Cyber: Small-firm quotes at a $1M limit started around $520 to $1,000 in quotes we ran in 2026.
Hired and non-owned auto is covered in our glossary under hired and non-owned auto.
Example: a solo architect’s first year
Consider a hypothetical solo architect. On day one, they buy professional liability and general liability. A builder client later asks for additional insured status, which the architect sends to their broker. After hiring the first employee, they ask about workers’ compensation before the start date. Each policy arrives when the need appears.
What to check when starting your own practice
- Which policies your first client’s contract requires
- Your professional liability retroactive date
- Whether general liability limits meet the contract
- Your state’s workers’ compensation threshold
- Whether you drive to job sites for work
- What a cyber quote would look like for your firm
What insurance do I need first when starting your own practice?
Professional liability and general liability or a business owner’s policy are the usual starting points. Your first contract may add more.
How much does general liability cost for a solo architect?
It can start at around $500 to $1,000 a year, depending on your firm.
When do I need workers’ compensation?
When you hire. Thresholds vary by state, so confirm before your first hire.
Why buy professional liability early?
The retroactive date usually starts when you buy the policy, so earlier purchase covers more of your work.
Do I need hired and non-owned auto?
It is worth considering if you drive your own car to job sites.
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