All professional architects and engineers risk having claims brought against them in relation to their work. Some claims may have merit. However, some professionals can get caught in a wide net cast by a claimant trying to recoup unexpected losses, regardless of actual fault. Notwithstanding the frivolity of a claim, once a case settles or a judgment is rendered, you may be obligated by your state to report the settlement or judgment to your professional board.
Almost all professional liability (PL) insurance policies are written on a claims-made basis. It is important to understand the claims-made nature of your PL policy, as it is a fundamental aspect of your insurance coverage.