Business Insurance Solutions for Draftsmen and Designers
Our draftsman and designers insurance program offers an affordable, easy way to secure the insurance coverage you need for your business. This page will provide you with an overview of the most-requested types of insurance coverage, key considerations for business like yours, and the ability to receive a free, secure insurance quote for your draftsmen business.
With Business Insurance Now, you don't necessarily have to be licensed to purchase coverage. A minimum of five years of experience and related qualifications may substitute.
We're proud to provide insurance coverage for the following licensed and unlicensed design and construction consulting professionals:
- Acoustical consultants
- Certified planners
- Consulting engineering
- Drafting services
- Engineering geologists
- Facilities management
- Interior designers
- Lighting designers
- Residential designers
- Sprinkler designers
- Telecommunications consultants
Why do I need draftsmen business insurance?
Whether you work as an independent draftsman or design consultant or you own your own small firm, there's a certain amount of risk inherent in any complex project. Despite your best efforts, small miscalculations can happen – and as you know, little mistakes can cause big problems.
Draftsmen and other unlicensed design professionals can provide services directly to clients, but often do projects for licensed architects and engineers. You may feel that you do not have liability because a licensed engineer signs off on your work. But often, if there is a problem, everyone involved in the project may be sued. If that happens to you, you'll be responsible for your own defense until liability is determined.
Most independent contractors and small design consulting firms don't have big bank accounts. If you or your company were to be sued for an error or omission – even if you are not at fault – your legal defense costs would add up fast. Worse, if a judgment were made against you or your firm, having to pay restitution could be enough to sink your business.
The right draftsmen business insurance protects you in case the worst happens, allowing your business to continue to thrive while you fight any legal claims.
What are the most important types of coverage to consider?
Your insurance should fit the needs of your individual business. At a minimum, small design firms and independent design consultants should consider two important types of coverage:
- Draftsmen Professional Liability Insurance protects you from lawsuits related to errors or omissions in your work.
- Draftsmen General Liability insurance protects you from claims of bodily injury or property damage. You may also wish to consider Umbrella Coverage, which provides up to $10 million of additional General Liability protection.
Why should I choose Business Insurance Now?
Since our founding in 2000, Business Insurance Now has specialized in working with small-business owners. In fact, thousands of small businesses rely on Business Insurance Now to support their growing needs and help them manage their risks with fast, affordable draftsmen business insurance coverage.
Solo consultants and small design and consulting firms tell us that they want to:
- Meet their clients' contract requirements
- Save money without sacrificing quality
- Receive competitive quotes from leading carriers
- Get big coverage for their small firms
- Get the peace of mind they deserve
- Talk with our experienced agents — real people with real answers
- Get claims service they can count on
Business Insurance Now offers all of that, and more.
With skill and luck, you may never face a lawsuit. But if you do, you'll wish you hadn't taken the risk of going without insurance. Protect yourself and your company. Apply for a free, secure draftsmen business insurance quote from Business Insurance Now today.
Draftsmen Professional Liability Insurance
What Is Draftsmen Professional Liability insurance, and why do I need it?
Also known as "errors and omissions insurance," draftsmen professional liability insurance protects you or your design or consulting firm against the financial devastation that comes from being charged with either a negligent act or failure to perform your professional duties.
In such cases, your Draftsmen Professional Liability insurance or E&O insurance would pay for your legal defense, as well as damages that you or your firm may be legally required to pay, up to the dollar limit specified by your policy. That protects your company and your future by helping you keep your business running as potential lawsuits move through the courts.
I am a one-man design services firm and primarily work on small residential and commercial projects that don't carry much risk. I have been in business for years and never had a problem. Now a client requires that I show evidence of draftsmen professional liability insurance coverage. Why?
Many smaller drafting and design firms buy Draftsmen Professional Liability insurance because their contracts require it. Some clients make it an obligation in order to win work. Your client wants you to be financially responsible for any errors. If you make a mistake that results in a lawsuit, your client wants to be sure you have the financial resources to compensate the company for its loss.
Often, draftsmen and designers are contractually required to maintain Draftsmen Professional Liability coverage not only while working on a project, but for years after. Ultimately, maintaining Draftsmen Professional Liability insurance is the responsible thing to do.
How does Draftsmen Professional Liability insurance fit with my risk-management strategy?
Draftsmen Professional Liability insurance is an important part of a comprehensive risk management strategy that includes:
- Identifying and documenting potential risks, and developing strategies to prevent them from becoming problems.
- Transferring some risk to an insurer by purchasing an insurance policy.
- Reducing risk by implementing projects in small increments, with careful attention to risk management at every step.
- Avoiding risk by choosing not to take on risky activities. However, refusing to take on risk may cause you to lose out on potential profits or business gains that may come from taking that risk.
- Retaining some level of minimal risk, in cases where insuring against a risk would be more costly than the potential losses you could sustain. In instances where these risks become problems, your company accepts any losses that occur. In reality, any risk that you do not transfer or avoid is retained by your company.
What is not covered by Professional Liability?
Professional Liability insurance is not designed to address every type of business risk you might have. Be sure to review the "Exclusions" section of your Professional Liability policy for these and other common exclusions:
- Unfair trade practices: A competitor sues you for taking one of its clients after hiring one of the competitor's employees.
- Non-payment of fees: a vendor sues you for failing to pay an invoice.
- Willful or dishonest acts: A client sues you alleging that you knowingly and intentionally defrauded it or stole company information. Liability insurance policies respond to allegations of negligence, not allegations of illegal activity.
Draftsmen General Liability Insurance
What is Draftsmen General Liability insurance, and why do I need it?
General Liability insurance for draftsmens protects you against any potential harm to another person or their property. Unlike Draftsmen Professional Liability insurance, Draftsmen General Liability insurance doesn't cover claims related to the delivery of professional services.
A Draftsmen General Liability and Property package policy can protect your company's assets from a lawsuit filed against you for injury or property damage. Up to the limit set by your policy, it covers court costs and the cost of a legal defense, as well as medical costs for anyone who might be injured on your property or in the course of your doing business. It can also cover physical damage to your property, including theft, and business interruption due to a disaster, such as a fire.
I am moving from a home office and into a small rental office space. What kinds of draftsmen business insurance should I purchase to satisfy the landlord and protect myself against the major risks of my business?
General Liability insurance for draftsmen covers your liability for damage to the space you lease. Draftsmen General Liability insurance also protects you if a visitor at your office is injured.
A package policy or Business Owner's Policy also can cover your business owned assets in the event of fire, theft, storm damage. Your package policy should also cover fixed expenses you must pay even if your office is shuttered due to a covered loss, as well as lost profits, the cost to pay someone else to keep your projects going while you're shut down, and the cost of getting your business back in operation quickly.
But I've never needed draftsmen business insurance before. Can't I get by without it?
Doing business without adequate insurance is risky. Yes, you'll save money on premiums – but you're also taking the enormous risk of losing everything in the event of a fire or liability lawsuit.
Business Insurance Now offers lots of insurance options at very competitive prices. You may be surprised at how affordable high-quality insurance can be.
Some of my clients require that I name them as an additional insured on my Draftsmen General Liability insurance policy. Does that cost extra?
Your General Liability policy should cover you for a wide range of property and liability risks tailored to your business and often required by your clients, at no additional cost. When your client's contract requires special coverage provisions, the last thing you want is a hassle from your insurance company.
For example, when you sign a contract, agreement or permit that requires you to name a client as an additional insured on your Draftsmen General Liability insurance policy, your policy should automatically provide primary coverage for the additional insured. This eliminates the need to request an additional endorsement.
Your policy should also include Primary and Non-Contributory Additional Insured Coverage. If you have agreed in a written contract, agreement or permit that your insurance is primary and non-contributory with the insurance of the additional insured, this coverage provides that your General Liability coverage is primary, and the insurance carrier will not seek contribution from that other insurance.
Some of my clients require a Waiver of Subrogation. What is that?
Also known as a Waiver of Rights of Recovery, a Waiver of Subrogation provides that your insurance carrier will waive any rights of recovery against a person or organization if you have waived your rights of recovery in a contract, agreement or permit executed prior to the injury or damage.
What is a BOP?
BOP stands for Business Owner's Policy. This type of package policy includes both General Liability and Property insurance. A high-quality BOP ensures that you'll be covered for a wide range of property risks specific to your business, including:
- Business personal property: coverage to repair or replace your business-owned property, such as phone systems, desks, file cabinets and more.
- Computers and media: coverage for your computers, peripheral devices and media. Coverage is also provided to help pay for the costs to research, replace or repair lost or damaged data and software as a result of covered damage to computer equipment, certain power failures, or a computer virus. Business Income Coverage also applies to computer equipment, data and software.
- Valuable papers and records: coverage to you for the cost to replace important documents lost in a fire or other covered cause of loss. A BOP would protect the value of your time, work and research to re-create engineering drawings and blueprints if they are destroyed or damaged by covered cause of loss.
- Business interruption: helps reimburse you for your actual loss of earnings for up to 12 months resulting from a covered loss to your property, plus extra expenses needed to continue your operations, such as renting temporary space.
What other types of coverage might benefit my business?
Depending on the number of employees who work for your company, you should also consider:
- Workers' Comp insurance to protect your employees in the event of an on-the-job injury. The insurance carrier's managed care and return-to-work program can help you get your employees back on the job as soon as possible.
- Non-Owned Auto Liability insurance to protect your company should it be sued due to an auto accident while one of your employees is on company business in a personal vehicle.
- Employment Practices Liability insurance to protect you from lawsuits from employees alleging wrongful termination, sexual harassment, or discriminatory employment practices.