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Design & Construct Professional Indemnity Insurance

Specialist protection for contractors who assume responsibility for both design and construction under D&C contracts.

  • Covers design errors, specification failures and professional negligence
  • Responds even when design is subcontracted
  • Essential for D&C, EPC and principal contractor arrangements
  • Structured to meet contract and financier requirements
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No obligation. Policies structured to align with contract terms.

Australian insurance brokers
Experience with D&C and EPC contract risk
Access to specialist construction PI insurers
Understanding Your Cover

What Is Design & Construct Insurance?

Design & Construct Professional Indemnity (D&C PI) insurance protects businesses that accept professional responsibility for both the design and construction aspects of a project.

Under D&C contracts, liability for design errors, specification failures and professional negligence is often transferred to the contractor — even where design services are performed by subcontracted consultants. This insurance responds to claims alleging design faults, breaches of professional duty or failure to meet contractual design obligations, helping protect contractors against long-tail and high-value claims that can arise years after project completion.

Is This For You?

Who Design & Construct Insurance Is For

Design & Construct Professional Indemnity insurance is commonly arranged by:

Design & construct contractors
Commercial and residential builders with design responsibility
Engineering, procurement and construction (EPC) contractors
Developers acting as principal contractors
Fit-out contractors providing design services
Civil and infrastructure contractors
Construction joint ventures and consortiums
Contractors responsible for consultant selection and coordination
Note: This cover is essential for any business that accepts contractual responsibility for design, whether performed internally or outsourced.
Cover Options

What Does Design & Construct Insurance Typically Cover?

Professional Negligence (Design Errors)

Covers claims arising from errors, omissions or negligence in designs, drawings, calculations, specifications or documentation.

Breach of Professional Duty

Responds to allegations of failure to meet professional standards, statutory obligations or contractual design requirements.

Vicarious Liability

Covers liability arising from the acts or omissions of subcontracted designers, engineers or consultants.

Legal Defence Costs

Covers legal fees and expenses incurred in defending claims, even where liability is not ultimately established.

Beyond the Basics

Additional Covers & Policy Extensions

Policy Options

How Design & Construct Insurance Is Structured

1

Claims–Made Policies

Cover responds only if the policy is active when a claim is first made and notified, regardless of when the work was performed. Continuous renewal is essential to maintain protection for prior services and prevent gaps in cover.

2

Retroactive Cover

The retroactive date determines how far back completed projects and prior work are insured. Claims arising from work performed before this date are generally excluded, making the retroactive period a critical component of protection.

Continuous cover is critical. Policy structure is influenced by contract wording, project values, complexity, design exposure and how risk is allocated under D&C agreements.

Why It Matters

Tailored design & construct wordings

D&C contracts consolidate design risk with the contractor

Design defects can trigger significant rectification and delay costs

Claims can arise years after project completion

Principals and financiers often mandate high PI limits

Standard PI or Contract Works insurance may not respond adequately

Protect Your D&C Projects With Confidence

Speak with a broker experienced in D&C contract risk.

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Important: Design & Construct Professional Indemnity policies vary significantly between insurers, particularly around defect exclusions, contractual liability and fitness for purpose obligations. Definitions, endorsements and retroactive dates are critical. Specialist broker advice is strongly recommended.

FAQ's

It covers contractors who assume responsibility for both design and construction, protecting against claims arising from design errors, professional negligence and breaches of duty.
Yes. Under D&C contracts, liability often rests with the contractor regardless of who performs the design work.
D&C PI is specifically designed for contractors who take on design risk and typically includes broader contractual and vicarious liability protection.
While not legislated, it is commonly required by principals, financiers and head contracts, particularly on large or complex projects.
The retroactive date determines how far back completed projects are covered. It is critical for managing long-tail design claims.
Some policies include limited rectification or mitigation cover, but this varies significantly by insurer and wording.
If you need to make a claim, contact Seguro Insurance Brokers directly. Our team will guide you through the claims process, help you gather the required documentation and liaise with the insurer on your behalf to ensure your claim is handled efficiently.
Many contracts require cover to be maintained for several years after completion. Run-off cover can help meet this obligation.
Joint ventures and consortiums often require bespoke policy structures to ensure all parties are adequately protected.
Limits depend on contract requirements, project size, financier expectations and potential exposure.
D&C PI policies vary widely. A broker ensures compliance with contract terms, negotiates endorsements and avoids costly coverage gaps.
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