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 you for daily. 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 to your professional career. Insurance for your architect business is a smart decision and can help maintain your reputation, financial resources, and future projects in the event of a lawsuit.

Professionals in this industry are responsible for the planning and designing of buildings (residential, commercial, and industrial). They are responsible for understanding building codes and materials, and zoning regulations.

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 opinion on insurance for architects. Some avoid your industry altogether. The majority will want to know your safety procedures, what types of contracts you use, and your experience. Cost is also impacted by whether you buy architect Errors and Omissions Insurance.

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. A part of an architect's insurance, the coverage protects architects from risks under this contract.

First, educate your client about all potential risks. This helps keep risks at a minimum, and lawsuits as well. 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.