If you run an architecture firm, you're juggling a lot—client meetings, design reviews, site visits, managing staff, and keeping your office running smoothly. The last thing you want to think about is insurance. But here's the thing: a single lawsuit or fire could put everything you've built at risk. That's where a Business Owners Policy comes in.
A BOP bundles general liability and commercial property insurance into one convenient package. Think of it as your firm's safety net for the physical side of your business—your office space, equipment, client injuries, and day-to-day operational risks. For most small to mid-sized architecture firms, a BOP makes financial sense and simplifies your insurance needs.
What Is a Business Owners Policy?
A Business Owners Policy combines two essential coverages into one streamlined policy: general liability insurance and commercial property insurance. Instead of buying these separately, you get both in a single package—usually at a lower price than purchasing them individually. Most businesses save 10-15% by bundling.
General liability covers third-party injuries and property damage. If a client trips on a cable in your office and breaks their ankle, or if you accidentally damage a client's property during a site visit, general liability steps in. It covers medical bills, legal fees, and settlements.
Commercial property insurance protects your physical business assets—your office building (if you own it), furniture, computers, drafting equipment, plotters, and other tools of the trade. If a fire, theft, or vandalism damages your workspace, property coverage pays to repair or replace what was lost. Many BOPs also include business interruption coverage, which reimburses lost income if you have to temporarily close due to a covered event.
When Does a BOP Make Sense for Architecture Firms?
Not every architecture firm qualifies for a BOP, and that's by design. Insurance companies typically offer BOPs to small and mid-sized businesses with moderate risk profiles. Most insurers set eligibility limits at $5-6 million in annual revenue and fewer than 100 employees. If your firm is larger or handles extremely high-value projects, you may need a custom commercial package policy instead.
A BOP works well if you have a physical office space—whether you own or lease it—and keep valuable equipment on-site. It's ideal for firms with primarily office-based operations and occasional client meetings or site visits. If you run a solo practice from a home office with minimal equipment, you might get by with simpler coverage. But if you employ staff, lease commercial space, or have tens of thousands of dollars in computers and design equipment, a BOP provides solid foundational protection.
For architecture firms specifically, the average BOP costs about $57 per month or $679 annually, according to 2025 data. That's a relatively small investment compared to the financial exposure you'd face without coverage. Costs vary based on your location, office size, equipment value, claims history, and the coverage limits you choose.
What a BOP Typically Covers for Architecture Firms
Understanding what's included helps you see the value. Here are the core coverages you'll find in most BOPs:
General liability handles bodily injury and property damage claims. If a client slips on a wet floor in your office lobby and sues for medical expenses, your BOP covers the legal defense and any settlement or judgment. If you accidentally knock over a model during a presentation at a client's office, damaging their conference table, property damage coverage kicks in. Standard limits are typically $1 million per occurrence and $2 million aggregate, though you can adjust these based on your needs.
Commercial property coverage protects your physical assets—the building you own or lease improvements you've made, plus your business personal property like computers, printers, plotters, furniture, and supplies. Covered perils usually include fire, theft, vandalism, wind, and water damage from burst pipes. If someone breaks into your office and steals $20,000 worth of equipment, property coverage reimburses you for the loss.
Business interruption coverage is often bundled into BOPs and can be a lifesaver. If a fire forces you to close your office for two months while repairs are made, business interruption insurance replaces your lost income during that period. It can also cover operating expenses like rent and payroll, so you don't have to lay off staff while you're getting back on your feet.
Some BOPs include coverage for equipment breakdown, which pays for repairs or replacement if essential equipment like your HVAC system or server fails. Others may offer limited coverage for electronic data loss, though this is often capped at a low amount and may require separate cyber insurance for full protection.
What a BOP Does Not Cover
Here's where it gets critical: a BOP does not cover professional liability. For architecture firms, this is a huge gap. Professional liability insurance—also called errors and omissions (E&O) insurance—protects you when a client claims your design was flawed, your advice was incorrect, or you failed to deliver services as promised. If a structural issue arises from your design and the client sues for damages, professional liability covers your legal defense and any settlement.
Architects typically pay around $145 per month or $1,730 per year for professional liability insurance with $1 million in coverage. Many clients and project owners require you to carry it, with limits ranging from $1-5 million depending on project size. Without it, you're personally exposed to potentially devastating lawsuits. So while a BOP is essential, it's not enough on its own—you need professional liability as well.
BOPs also typically exclude workers' compensation, which is required by law in most states if you have employees. Workers' comp covers medical expenses and lost wages if an employee gets injured on the job. You'll need to purchase this separately. The same goes for commercial auto insurance if your firm owns vehicles or if employees regularly use their personal cars for business purposes.
Flood and earthquake damage are standard exclusions in most BOPs. If your office is in a flood-prone area or earthquake zone, you'll need separate coverage. Cyber liability—covering data breaches, ransomware attacks, and client data theft—is also excluded from most BOPs, though it's becoming increasingly important for architecture firms that store sensitive client information electronically.
How to Get the Right Coverage for Your Firm
Start by taking inventory of your physical assets. Add up the replacement value of your office equipment, furniture, computers, software licenses, and any other business property. This helps you choose appropriate property coverage limits. Don't lowball it—underinsuring means you won't get fully reimbursed if disaster strikes.
Review your general liability limits carefully. The standard $1 million per occurrence and $2 million aggregate is a good baseline, but if you work on high-value projects or have frequent client visits to your office, consider higher limits. Some commercial leases or client contracts may require specific coverage amounts.
Shop around and compare quotes from multiple insurers. BOP pricing can vary significantly based on the carrier's underwriting criteria and risk assessment. An insurance broker who specializes in professional services can help you navigate your options and find the best combination of coverage and price.
Don't forget to bundle. Many insurers offer discounts if you purchase your BOP, professional liability, and other coverages together. This not only saves money but also simplifies management—one renewal date, one carrier, one point of contact.
Finally, review your coverage annually. As your firm grows, your insurance needs will change. Adding staff, moving to a larger office, or taking on bigger projects all warrant a policy review to ensure you're adequately protected.
Protecting What You've Built
Running an architecture firm requires creativity, technical expertise, and business savvy. You've invested years building your reputation and client base. A Business Owners Policy is one of the smartest ways to protect that investment. It won't cover every risk—you still need professional liability and possibly other specialized coverage—but it provides a solid foundation for your firm's insurance program.
Take the time to understand what you're buying, compare your options, and work with a knowledgeable insurance professional. The peace of mind that comes from knowing you're properly protected is worth every penny.
