Common Insurance Claims Made Against Architecture Firms
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 hour ago
- 2 min read
Architecture firms face a wide range of risks throughout the design and construction process. Even the most experienced firms can encounter disputes that lead to insurance claims. Understanding the most common insurance claims made against architecture firms helps owners identify exposures and secure the right coverage.
Below are the claims architecture firms encounter most often—and why proper insurance matters.
Professional Liability Claims (Errors & Omissions)
Professional liability claims are the most frequent and costly claims for architecture firms. These claims often involve allegations of:
Design errors or omissions
Failure to meet professional standards
Incomplete or unclear drawings
Coordination issues with engineers or consultants
Even when claims lack merit, legal defense costs can be significant.
Claims Related to Construction Delays
Architects may be named in claims alleging that design issues contributed to:
Project delays
Cost overruns
Rework or change orders
These claims often arise on commercial or public projects and can involve multiple parties.
General Liability Claims
Although architects primarily provide professional services, general liability claims still occur. Common examples include:
Slip-and-fall injuries at the firm’s office
Property damage during site visits
Advertising injury claims
General liability insurance addresses these non-professional exposures.
Breach of Contract Claims
Contracts play a major role in architectural risk. Claims may allege:
Failure to meet contractual obligations
Missed deadlines
Scope misunderstandings
While not all contract claims are covered by insurance, professional liability policies may respond when allegations involve professional negligence.
Intellectual Property and Copyright Claims
Architecture firms may face claims related to:
Design ownership disputes
Alleged reuse of protected plans
Copyright infringement
These claims highlight the importance of understanding policy exclusions and endorsements.
Cyber Liability and Data Breach Claims
With digital plans, BIM models, and client data stored electronically, cyber-related claims are increasing. Common issues include:
Data breaches
Ransomware attacks
Loss of confidential client information
Cyber liability insurance helps cover response costs and potential legal exposure.
Educational resources like Investopedia provide additional insight into how cyber liability coverage works for professional firms.
How Insurance Helps Protect Architecture Firms
Insurance allows architecture firms to:
Manage defense and settlement costs
Meet contractual requirements
Protect cash flow and reputation
Continue operations during disputes
The right mix of professional liability, general liability, and cyber coverage is essential.
Get Architecture Firm Insurance Quotes from Wexford Insurance
Wexford Insurance works with architecture firms to build insurance programs that address the most common claims faced by design professionals.
With Wexford Insurance, firms can:
Secure professional liability and E&O coverage
Evaluate claim-related risk exposures
Compare policies from top-rated carriers
Get expert guidance tailored to architectural practice
If you’re reviewing coverage or preparing for new projects, Wexford Insurance can help protect your firm against common insurance claims.
FAQs
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