Our Holmes Murphy Architects and Engineers (A&E) team knows the importance of arming you with information so you can swiftly respond to emerging trends in the design world. We closely analyze real-time claims data to share with clients and those interested in the industry on a quarterly basis. By using this data, our goal is to not only validate industry assumptions with real-world evidence, but also to translate the information into actionable solutions to help you proactively prevent future claims.

We’ve summarized our key insights below—for additional context, check out our comprehensive report.

Claims and Pre-Claims

During the 1st quarter of 2025, our clients reported a total of 28 claims and 25 pre-claim assists, averaging approximately one report per business day. Activity appears to be slightly down from 2024 Q4. We believe this slight change could be due to an influx of January 1 renewals that are closing out circumstances reports as due diligence. The data shows Architect LPs/Claims are up 15% from Q4. Civil Engineering LPs/Claims are down 12% from Q4.

Revenue and Size of Firms

We continue to see a significant number of claims come through our firms with revenue $2M and under. In the 1st quarter, almost 20% of the claims reported were from this sample size. Firms up to $2M revenue reported six total claims/loss preventions in the 1st quarter. Statistically smaller firms have fewer and less complex projects, yet they are not immune to challenges.

Quality Control Claims

As we reported in Q4 2024, third-party injuries aren’t the primary source of new claim reports. However, our data reveals a higher frequency of issues related to quality control. The Q1 data reported includes cases specific to “Project Management” where Pre-Claims/Claims are owner driven when there has not been a design error alleged, but a complaint about the overall progress of the project. We see this as an opportunity to encourage our firms for training and development of their Project Managers.

Geographic Breakdown

We continue to monitor the claim reporting data by geographic region. As more data points come in, we hope to be able to provide context to which areas see more claim activity.

We’re Here to Help

For more information or to discuss these findings in greater detail, please reach out to a member of your Holmes Murphy team.