A Tricky Liability Trap for Architects and Engineers — and What It Means for Brokers
When you work with architects and engineers (A/Es), you know their projects are high stakes. A small mistake in design or oversight during construction can lead to massive claims. But sometimes, the biggest liability doesn’t come from a glaring error — it comes from a gray area where contracts, professional judgment, and casual conversations collide.
As an insurance professional, understanding these risks helps you position yourself as a trusted advisor. Let’s look at one scenario that highlights why professional liability for A/Es can be so tricky.
The Scenario: When “Just Trying to Help” Leads to Liability
An architect is contracted to design a mixed-use development. Midway through construction, the contractor runs into a drainage issue — something clearly assigned to the civil engineer in the project contracts. Wanting a quick answer, the contractor asks the architect for advice. The architect offers a suggestion, and the contractor implements it.
The solution fails, causing water damage and expensive repairs. Suddenly:
The owner blames the architect for bad advice.
The architect points out drainage wasn’t part of their scope.
The engineer wasn’t consulted.
The contractor insists they followed the architect’s recommendation in good faith.
Now the architect is in the middle of a liability battle for an issue that was never part of their official responsibility.
Why This Matters for Insurance Professionals
For brokers and agents working with A/E firms, this kind of situation underscores several important truths:
Scope Doesn’t Always Protect Them – Even if the contract excludes certain services, once advice is given, courts and clients may still hold the professional accountable.
Standard of Care Still Applies – Casual input can be judged under the same professional standards as contracted services.
Insurance Gaps Can Emerge – Professional liability policies are designed to cover “professional services” — but advice given outside the defined scope may not be considered covered services.
Clients Often See A/Es as All-Knowing – Owners and contractors treat architects and engineers as the authority on everything design-related, which leads to risky reliance on informal opinions.
How Brokers Can Help A/Es Mitigate the Risk
Your role as an insurance advisor goes beyond placing coverage — you can help your A/E clients recognize and manage these subtle exposures. Here are key ways to add value:
Educate on Boundaries – Remind clients that well-intentioned “off the cuff” advice can create liability. Encourage them to defer to the right discipline.
Review Contractual Language – Make sure contracts clearly outline scope of services and include limitations of liability where possible.
Highlight Documentation Practices – Recommend that A/Es document any advice given outside of scope and clarify in writing that it should not be relied on as professional direction.
Align Insurance Coverage – Discuss how their professional liability policy responds to these situations, and whether endorsements or broader coverage terms are available.
Position Yourself as a Risk Partner – By sharing scenarios like this, you build credibility as someone who helps clients avoid the traps that can sink projects.
The Takeaway for Brokers
For architects and engineers, the most dangerous liability situations aren’t always about design flaws — sometimes it’s a quick conversation on a job site. As their insurance partner, your ability to anticipate these risks, advise on best practices, and align coverage appropriately can make all the difference in protecting your A/E clients from devastating claims.
About PDI
PDI is an Indianapolis-based wholesale brokerage firm with a national network that includes thousands of insurance agents, brokers, architects, engineers and contractors in all 50 states. Since PDI’s beginning in 1980, we’ve handled a single line of coverage: errors & omissions (E&O) for design professionals. Contact Us today for a review of your design client’s insurance program.