Claims Statistics for Design Professionals
It is important to know claims statistics and information in order to help your firm with risk management. The more your firm knows what happens with claims the better you can protect your firm against claims.
-Approximately 65% of claims filed against architecture firms come from project owners. General contractors are filing the second most at about 9% of claims against architecture firms.
-Schools/colleges have the highest frequency of claims (number of claims filed) and condo projects have the highest severity (amount of claims dollars paid) against architecture firms.
-For engineers approximately 62% of claims filed were from project owners. Coming in second in claims filed are from third parties at about 12% and a close third from general contractors at 9%.
-Much like architects, the highest claim frequency for engineers is from schools/colleges. However, unlike architects the highest claims severity is from houses/townhome projects.
An important factor to keep in mind with regards to the statistics’ is that this is an overall study of the country as a whole. These percentages and figures may vary from state to state depending on laws, statute of limitations and insurance regulations within each state.
It is important to know where claims are coming from to have the best risk management in place for your firm. If it’s a project type your firm is not familiar with, it may not be in your firms’ best interest to take on that project. Or if it’s a project owner you have not worked with before get some references from other design professionals so your firm has an understanding of how to work with that owner. There are many risk management resources available, be sure to ask your PUI Agent.