5 Key Types Of Insurance You Need To Protect Your Architecture Business

Finding the right cover for your architecture business is absolutely key, as although the nature of the business is to be ultra organised and precise, unfortunately, things do go wrong every now and again, whether it’s something in your control or not. That’s why it’s best to get the right measures in place whilst things are going well, to help you protect your business when the unexpected happens. Whether you specialise in tiny homes or modern architecture, prioritise protecting your business today and you will likely be very grateful for it in the future. 

Professional Indemnity Insurance

The first, and arguably most important, type of insurance for your architecture business is professional indemnity insurance. Mistakes happen, no matter how confident you are in your work, and this type of insurance helps to protect your business in the event that you or a member of your team do make a mistake, from a small incorrect measurement or a more significant slip up that causes your client to lose money. The amount of cover is easily tailored to your business and the amount of cover you require, from the cost of actual damages through to legal costs, depending on the policy. 

Public Liability Insurance

Another important type of insurance you need for your architecture company is public liability insurance. Usually architecture will require people to visit and work on construction sites, which are renowned for being quite dangerous. So, although you can do as much training as possible and take many different precautions to protect yourself and your team, mistakes can happen. So, public liability insurance helps to provide cover for accidental injury in the workplace, which is a must for your architecture business. 

Business Equipment Insurance

This type of insurance provides cover if there is any damage or loss to business equipment that is used for your business. You should have cover for any items that your business couldn’t function without, such as laptops and computers with your software on them and also physical tools from your compasses and scales through to drafting tubes. If the worst were to happen, for example a fire, losing everything at once is devastating, so having business equipment insurance helps to take away that stress so everything can be replaced. 

Credit Insurance

Another recommended type of insurance for an architecture business to have is credit insurance. Credit insurance, also known as bad debt insurance, is all about making sure that if you do work for someone and they fail to pay for whatever reason, such as the business being liquidated, then you are covered and receive the payment through your credit insurance. An example of this would be if you offer to do work on a credit basis in order to get the business, then the business folds before you’ve been paid for the work. With credit insurance, you can offer more favourable terms when negotiating work deals, safe in the knowledge that if your customer fails to pay, your insurance will cover the loss. 

Key Person Insurance

Another recommended type of insurance for your architecture business, as well as any other businesses, is key person insurance. This is a type of insurance that covers essential people in your business, such as owners or directors, so in the event that something happens and they are unable to work (severe injury or death), the financial loss as a result of that is covered. Losing a key person in a business also usually means losing someone who you are close with and so it can be hard to think from a business perspective in that instance. So, this type of insurance helps to provide some time to help your business continue financially to give you time to make decisions about the next best steps without feeling rushed. 

Final Thoughts

When everything is running smoothly for your architecture business, it can be hard to imagine anything changing. However, things can change in an instant, so being prepared from a business perspective is key. Getting the right types of insurance, from the absolutely essential ones through to the advised ones, could save your business one day. Working with a broker who specialises in architecture would be advised, as they will help to get you all the right cover at the best price, plus the cost of a broker won’t go onto you, as they will usually get commission from the insurance companies themselves, so it’s a win-win for you.