Year-End Risk Advisory for Design Professionals: Navigating Emerging Risks in 2026
As 2025 draws to a close, design professionals have an opportunity to reflect on the evolving risk landscape and prepare for the challenges ahead. The profession continues to be shaped by rapid technological change, heightened client expectations, and increasing regulatory complexity. This advisory highlights key trends from the past year and offers practical strategies to mitigate risk in 2026.
1. Contractual Risk and Scope Creep
What we saw in 2025:
Disputes over unclear scopes and compressed schedules were among the most common sources of claims. Ambiguity in deliverables and informal change orders often led to costly misunderstandings.
Action for 2026:
- Ensure contracts clearly define scope, deliverables and timelines.
- Document all changes in writing and obtain client approval before proceeding.
- Consider adding provisions addressing AI-assisted design and digital deliverables to avoid liability gaps.
2. Cybersecurity and Data Privacy
What we saw in 2025:
The adoption of BIM and cloud-based collaboration tools increased exposure to ransomware and data breaches. Cyber incidents halted projects and caused significant financial and reputational damage.
Action for 2026:
- Implement multifactor authentication and regular system updates.
- Conduct annual cybersecurity audits and employee training.
- Review cyber liability coverage to ensure adequate protection for digital assets.
3. AI and Emerging Technology Risks
What we saw in 2025:
AI-driven design tools transformed workflows but raised questions about intellectual property, accuracy and liability for errors.
Action for 2026:
- Update contracts to address AI usage, ownership of outputs and validation responsibilities.
- Establish internal protocols for reviewing AI-generated designs before client delivery.
4. Climate and Sustainability Liability
What we saw in 2025:
Green building certifications and energy performance guarantees became focal points for disputes when expectations were not met.
Action for 2026:
- Avoid performance guarantees; instead, reference compliance with recognized standards.
- Use clear disclaimers regarding factors outside your control, such as occupant behavior or operational maintenance.
5. Professional Liability Claims Trends
What we saw in 2025:
Claims related to coordination errors and communication gaps in multidisciplinary projects continued to rise, often due to fragmented documentation.
Action for 2026:
- Strengthen QA/QC processes and maintain thorough records of decisions and approvals.
- Encourage proactive communication among all project stakeholders.
6. Regulatory Changes and Compliance
What we saw in 2025:
New building codes and ESG reporting requirements introduced additional compliance obligations for design professionals.
Action for 2026:
- Stay informed on local and federal regulatory updates.
- Provide staff training on emerging compliance requirements and documentation standards.
Your 2026 Risk Management Checklist
- Conduct a risk audit of contracts and internal processes.
- Review insurance coverage for cyber, professional liability and environmental risks.
- Invest in staff training on technology and regulatory changes.
- Establish a claims prevention program based on lessons learned from recent disputes.
Risk management is not a one-time exercise. It is an ongoing commitment to protecting your firm’s reputation and financial stability. By taking proactive steps now, design professionals can enter 2026 with confidence and resilience.
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