Architecture is an $11 Billion industry, with 87% of the firms generating approximately $1.5 million or less annually. According to einsurance.com, the number of liability claims being brought against architects has been on the uptick for over a decade and the majority of claims against small firms have come from residential projects. 

How can you reduce your risk?  Of all of the risk drivers in the architectural industry, communication accounts for the greatest percentage of claims, according to XL insurance, at 39%.  Communication?  Sounds too simple to be the reason for lawsuits, but the statistics don’t lie.  As professionals, how can we mitigate this risk?  Create and define your firm’s communication strategies, both with clients and internal staff, consultants and other project stakeholders.  This may include internal systems and policies about how to file communications so they are easily available to all who need access, setting expectations for the client, and presenting pertinent information in several formats, understanding that each person learns and processes information differently.

Architectural firms are no different than any other successful entrepreneurial business.  Communication is an area of extreme importance; however it can easily fall by the wayside when the amount of work becomes overwhelming.  Just remember, it may be your prevention of a lawsuit.