Case Study
Helping Navigate Risk Beyond the Policy
When professional service firms face complex contracts and liability exposure, the right guidance can prevent problems long before they appear.
Client Background
A growing architectural firm was expanding its work across public and private projects, including municipal infrastructure and commercial developments. As their portfolio grew, so did the complexity of the contracts and liability exposures tied to their work.
Like many firms in the built environment, leadership understood the need for professional liability coverage. What they needed was deeper guidance on how contractual obligations, insurance coverage, and real-world project risks intersect.
The Challenge
The firm was not actively looking to change insurance partners. Like many design firms,
their focus was on delivering projects, serving clients, and managing the technical demands of their work. What began to surface, however, were the complexities hidden inside the contracts tied to that work.
As the firm continued taking on larger and more complex projects—particularly with public entities—several risks began to emerge:
- Contracts written for services other than professional design work
- Risk transfer provisions outside professional liability coverage
- Expectations to defend or indemnify claims unrelated to negligence
- Complex project disputes requiring careful coordination and communication
Objectives
Identify contractual provisions that expanded
liability beyond insurable risk
Strengthen guidance around disputes, claims,
and client communication
Improve alignment between contracts,
coverage, and project exposure
Access industry education and insights to help
leadership make informed decisions
Leadership needed perspective, clarity, and a partner who could help identify contractual risk early and guide them through complex situations when they occurred.
Our Approach
First, the team reviewed contracts and project agreements to identify provisions that silently expanded liability for professional services. By clarifying how insurance policies respond to
design-related risks, Kraus-Anderson Insurance helped leadership understand where contractual language created unintended exposure.
We also leveraged deep industry knowledge and carrier relationships to advocate for the firm, analyzing policy language, negotiating coverage structures, and helping leadership understand how coverage forms, pricing, and claims history affect long-term outcomes.
In addition, we helped provide continuing education resources that allowed licensed
professionals within the firm to meet training requirements while strengthening their understanding of risk and liability.
Outcomes
With stronger guidance and visibility into risk, the firm gained several advantages:
Greater confidence reviewing and
negotiating project contracts
Improved alignment between professional liability
coverage and contractual risk
More effective handling of disputes and claims situations
Increased understanding of industry-specific
insurance dynamics
