| Focus On Architectural
Risks
Architects who design condominiums are among
the most likely design professionals to be sued for errors
or omissions -- and they face some of the most costly claims.
While our Focus on Claims study shows that XL Design Professional-insured architects
generated only 1% of their fees from condominium projects,
condos have accounted for more than 7% of architects’
total closed claims -- and have consumed 14% of the total
claims dollars expended by XL Design Professionals on behalf of architects.
By comparison, commercial/industrial projects generated 26%
of architectural fees, but made up only 18% of closed claims
and consumed less than 13% of claim dollars. Colleges and
universities also appear to be relatively low risk projects
for architects. They made up 9% of architect fees while generating
7% of closed claims and consuming only 5% of claims dollars.
Other findings:
Roofs have been the most common element involved in architect
claims, but wall problems have had the biggest drain on claims
dollars. Roof problems were involved in 10% of closed claims
and consumed 11% of claims dollars. Walls made up fewer than
9% of claims but consumed 13% of claim dollars. Other major
elements involved in claims were HVAC (7% of claims, 6% of
dollars), floors (6% of claims, 4% of dollars) and code compliance
(5% of claims, 9% of claims dollars).
Most closed claims against architects were filed by their
clients. Owners, developers and other clients filed half (50%)
of closed claims against architects, consuming 64% of claims
dollars. Third parties filed approximately 30% of the claims
(21% of claims dollars) and contractors/subs filed 14% of
claims (12% of claims dollars).
Economic loss is the largest type of damage resulting from
architect claims, making up 37% of claims and 48% of claims
dollars. By comparison, only 36% of claims against architects
and 39% of claims dollars primarily involved property damage.
Bodily injury claims were less prevalent, making up 25% of
claims and 12% of claims dollars.
The information in this and all other on-line articles of
XL Design Professionals intends to inform its readers only, not to
render legal services. For legal advice, seek the services
of a competent lawyer. For coverage information, refer to
XL Design Professional's policy forms.
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