Strategic Alliances: Insurance Considerations

Strategic alliances are business ventures. No matter how they are structured legally, the parties to an alliance may be exposed to the risk of additional liability. All parties to an alliance should take care to ensure insurance coverage of any additional liability. Design firms typically form alliances to bring together complementary skills or expertise. Responsibilities are generally apportioned according to the alliance partners' respective skills. It is common and understandable for the alliance partners to assume that liability for professional acts is similarly apportioned.