Insurance for Architects

Architects are known for their vision. Your ability to design buildings and bring them to life is a true gift that clients rely on. As an architect, you also hold the weight of every project on your shoulders, because one missed step or overlooked building code can be devastating. Insurance for your architecture business is a smart decision and can help maintain your reputation, financial resources, and future projects.

Architects face many risks on every project including:

• Stolen Materials: In some cases, architects manage the supplies and materials needed to build their design. These materials are often left on site over night, making them readily available to those passing by. Replacing these materials can be expensive if they are stolen mid-project.
• Third-Party Injury: Many job sites are left unattended in the evening. Depending on how accessible it is, kids may be tempted to browse the area. If one of them trips and breaks a leg, you can be held liable for not maintaining a safe environment even though they should never have been there.
• Faulty Design: Architects rely on engineering teams to make their design happen. You can still be sued when engineering errors occur because they use your design as their map.
• Overbudget: In the beginning stages of any project there is a budget. Your clients expect that you stick to this budget. If you fail to, you can end up stuck paying the difference because you breached your agreement.
• Destruction of Files: These days most designs are completed electronically. What happens if your digital files are destroyed? How much time will you need to reinvest if you don’t have a backup? How much will that cost your business?

Every carrier has a different risk appetite and some avoid your industry altogether. The majority will want to know your safety procedures, what types of contracts you use, and your experience. The cost can range from $2,000 - $10,000 per year for a million dollar professional liability policy.

Design and Build is when architects and engineers are hired to perform both design and construction under a single contract. The type of risk management handles both the design and build process when the architect is contracted under this method. As a part of an architect's design and build insurance coverage, the whole process is protected.

First, educate your client about the potential risks. Manage your client's expectations. If deadlines can't be met or there will be some project changes be sure to inform your project manager. Make sure to document the project process. This ensures that you have solid proof when the need to defend yourself against your client arises.