Introduction
The design and construction consulting professions have always attracted creative and entrepreneurial minds. With the rise of remote work, cloud-based design tools, and flexible client relationships, professionals increasingly take on side projects, freelance design gigs, and pro bono work outside their primary firm responsibilities.
While these efforts may seem harmless (or even admirable) they come with significant professional liability risks. Whether it’s a weekend design for a friend, a charitable project for a nonprofit, or a small renovation handled “off the books,” the exposures are real, and insurance coverage may be nonexistent.
This article explores the risks of moonlighting, freelance work, and pro-bono services for both employees and employers, and how firms can protect themselves through policy, communication, and proactive risk management.
1. Why Side Projects Are Increasing
More than 40% of design professionals under 35 report doing some form of independent or freelance work outside their primary employment, according to the 2024 AIA Compensation and Career Report.
Drivers include:
- Supplemental income in a high-cost economy
- Creative independence beyond firm constraints
- Online exposure through freelance and portfolio platforms
- Easy access to design software and collaboration tools
However, these same enablers (remote work, shared platforms, and portable skill sets) have blurred the line between personal and professional responsibility, creating new liabilities that traditional firm insurance doesn’t address.
2. The Insurance Coverage Trap
Professional liability insurance (PLI) is not portable. It protects the named insured, typically the firm, for work performed on its behalf.
Any services provided independently by an employee fall completely outside this coverage.
That means:
- Personal side projects are uninsured.
- The employer’s policy cannot respond if a claim arises.
- The employer can still get pulled into a lawsuit if the client assumes firm involvement.
Example: The “Friendly Favor”
A junior architect designs a backyard studio for a family friend using firm software and a laptop. The slab settles unevenly, causing cracking and water intrusion. The homeowner sues both the designer and the firm, assuming the firm oversaw the project. The case is dismissed, but the firm incurs $20,000 in defense costs. The employee designer’s personal exposure remains uninsured.
Lesson: Even small, informal projects can lead to costly litigation. Insurance only follows authorized firm work—not moonlighting or freelance activity.
3. Licensing and Legal Exposure
Every U.S. licensing board prohibits unlicensed or unauthorized practice of architecture or engineering.
Performing design work independently, especially while employed by a firm, can result in disciplinary action, fines, or loss of license.
Even unlicensed staff (interns, CAD technicians, or EITs) who imply they’re offering “architectural” or “engineering” services can face misrepresentation claims.
Example: Misuse of Professional Title
A design intern used “Architectural Design Services” on a business card for side work. After a dispute, the client filed a complaint with the state licensing board. The intern received a $1,500 fine and cease-and-desist order; the employer was also contacted by the regulator. This matter could have been much severe had the project evolved to a point where real damages and economic loss may have occurred.
4. The Intellectual Property Crossover
Moonlighting often leads to blurred ownership of intellectual property (IP).
If firm templates, details, or standards are used in a personal project, the firm retains ownership of that material.
Worse, if the side project incorporates firm trademarks, logos, or metadata (as often happens with BIM templates), the firm could face reputational harm or unintentional liability.
Example: BIM Template Confusion
An employee used their firm’s Revit template for a private client. When a defect claim arose, the metadata on the drawing listed the firm’s name. The owner filed suit against both the designer and the firm. The insurer denied coverage, citing “non-firm work.”
Outcome: $60,000 settlement, paid out of pocket.
5. The Overlooked Category: Pro Bono Work
Pro bono work is often viewed as “safe” or “low risk” because it’s unpaid. In reality, it carries all the same liabilities as paid design services, sometimes more.
Example: The Charity Renovation That Went Wrong
An architecture firm volunteered to help a local nonprofit redesign its food pantry. The project was informal, with no contract, no insurance certificate and no defined scope. When a volunteer was injured by a collapsing shelf during renovation, the nonprofit’s insurer sued the architect for negligent design.
Outcome: Because there was no formal client agreement outlining the project scope, it became extremely difficult to determine the architect's actual role, what services were agreed upon, and what responsibilities the owner believed the architect should have fulfilled. This lack of clarity significantly complicated the dispute. Ultimately, the matter settled for more than $200,000, with an additional $45,000 in legal fees. Costs the architect may have avoided entirely had a contract with a clearly defined scope of services been in place.
Key Risks of Pro Bono Work
- No Written Agreement: Many volunteer projects skip contracts altogether, removing essential liability protections.
- Undefined Scope: “Helping out” can turn into implied responsibility for unforeseen elements and substantial "scope creep".
- Insurance Gaps: Some PL policies require “compensation or consideration” for coverage to apply. Free work may fall into a gray area.
- Third-Party Claims: Injuries, property damage, or construction errors can still lead to lawsuits, regardless of compensation.
- Reputational Fallout: Even charitable disputes can impact client relationships and media perception.
Risk Management for Pro Bono Services
- Always use a written agreement, even for volunteer work.
- Clearly define scope, responsibilities, and limitations.
- Obtain a certificate of insurance if partnering with another organization.
- Confirm with your broker that the firm’s PL policy covers pro bono services.
- Consider using a “reduced fee” or “nominal fee” ($1) to preserve insurability under policy language.
Sample Clause:
“The Architect is providing limited professional services on a volunteer basis. The scope of services is advisory only, and does not include construction supervision, review of means and methods, or acceptance of any third-party safety obligations.”
6. Firm Policy and Culture: Prevention Through Transparency
A clear moonlighting and pro bono policy protects both the firm and its employees. The goal is not to discourage creativity or community service, it is to ensure both happen responsibly.
Elements of an Effective Policy:
- Require disclosure and written approval for all outside work (paid or unpaid).
- Define allowable activities (e.g., teaching, mentoring, volunteer work) vs. prohibited professional services.
- Clarify insurance coverage limitations.
- Prohibit the use of firm resources, software, or branding.
- Require contracts and documentation for any approved outside engagements.
Sample Policy Language:
“Employees may not engage in outside design services, whether compensated or pro bono, without written authorization from firm leadership. Such services shall not be covered under the firm’s professional liability insurance, and the firm shall not be responsible for any resulting claims or liabilities.”
7. Building a Culture That Channels Creativity Safely
Rather than forbidding side projects or volunteerism outright, many firms are finding ways to harness employee initiative constructively:
- Encourage participation in firm-sponsored pro bono programs with formal contracts and insurance coverage.
- Allow approved design competitions or community projects under firm oversight.
- Recognize entrepreneurial ambition as a positive trait, but guide it within the firm’s ethical and professional framework.
A transparent, supportive culture reduces risk far more effectively than reactive discipline.
Conclusion
Side projects and pro bono efforts reflect the best intentions of design professionals, ie. creativity, generosity, and initiative. But without proper oversight, they can expose both individuals and firms to significant uninsured risks.
The solution is not to suppress independence or philanthropy, it is to manage it wisely.
With a clear policy, open communication, and thoughtful insurance coordination, firms can support their teams’ creative ambitions and community spirit while protecting everyone involved.
Moonlighting and pro bono work can coexist with responsible risk management, but only when they’re brought into the light.