Professional contractors and builders involved with design as part of Construction activities assume the additional liabilities of a design professional.
Irrespective of whether this is done in-house or obtained externally you may be held liable for claims arising from injury or loss due to a result of a breach of professional duty. Business Insurance Specialists provides specifically tailored Professional Indemnity insurance for Construction professionals known as Design and Construct Professional Indemnity coverage.
From our research there are two different types of D & C models – one with major contractor input, and the other with minor.
Due to the nature of the coverage required insurers have amended their standard policies for the construction and engineering in order to properly cater for the exposures.
As an example, with one insurer, we have noted the following description of what can be insured. The business activities description expressly stated experience requirements before coverage is provided.
Activities and Duties
"...services by any persons qualified as architects, engineers or surveyors or any other persons who have a minimum level of five years’ experience in undertaking the following services:
design, drafting, technical calculation, technical design specification, inspection, project management, construction management, feasibility studies, programming and time flow management, surveying, and/or the provision of advice or technical information; and
such additional services as declared to and expressly agreed in writing.
This definition shall not include:
a) performance or supervision (where such supervision would normally be undertaken by a building contractor) of construction, management, manufacture, assembly, installation, erection, maintenance or physical alteration of buildings, goods, products or property; or
b) environmental protection, workplace health and safety or industrial relation matters which would normally be overseen by a building contractor.
This description is different depending upon the insurer and needs to take into account your business requirements.
Due to the nature of coverage, we provide a separate Design and Construct Proposal form for us to obtain terms.
Please complete and return and we will obtain terms on your behalf.
If you do have any queries or concerns or would like a quotation, please contact us.