Design & Construct PI: Supporting Clients Through a Changing Risk Landscape

The Design and Construct (D&C) Professional Indemnity (PI) landscape continues to shift, in response to regulatory developments and heightened scrutiny of construction practices. The introduction of the New South Wales Design and Building Practitioners Act (NSW DBP) has been a key driver of this change, expanding the range of parties exposed to professional liability and raising awareness of the risks associated with design-related activities.

While some aspects of the NSW DBP regime, including requirements for compliant PI insurance, remain subject to transitional arrangements and implementation delays, the underlying risk has not gone away. If anything, the exposure continues to evolve as expectations around compliance, documentation and accountability increase. This means businesses – both large and small – should be wary of adopting a “wait and see” approach. The need for appropriate D&C PI cover remains as important as ever.

At Berkley Insurance Australia (BIA), we offer a D&C PI solution that is designed to address a range of professional indemnity exposures for a broad range of insureds, from smaller contractors such as electricians, civil contractors and builders through to larger and more complex design and construct operators.

Our policy is built around a clear insuring clause, providing cover for liability to pay compensation for civil liability arising from a breach of professional duty in the conduct of the insured’s activities and duties. 

Importantly, the wording recognises that in many D&C scenarios, responsibility does not sit solely with one party. The policy extends to potentially respond to liabilities arising from consultants, subcontractors and other parties engaged by the insured, subject to the terms of the cover.  This is a critical feature in the current environment, where project delivery often involves multiple contributors and shared responsibilities. 

Another strength of the BIA D&C PI product is its scalability. We understand that not all risks look the same. For larger, more complex projects, the focus is often on ensuring adequate limits, appropriate coverage for design exposures, and clarity around claims scenarios. For smaller operators, the challenge is often access to a policy that properly reflects the work they are actually doing – particularly where design forms only a small part of their overall services.

We are able to consider larger risks requiring tailored solutions while also providing accessible, practical cover for smaller businesses entering the D&C space. This includes coverage for many trades who are increasingly exposed to design liability through specification, installation choices, or compliance responsibilities.

While not all trades will fall within appetite, our wording allows us to consider a wide range of occupations where there is a genuine professional services component. This is particularly relevant as regulator expectations continue to broaden the potential scope of who may be considered to have design responsibility, even where it is not their primary function.

It’s also worth noting that the policy includes a range of extensions that potentially support insureds’ in managing claims issues early. These include mitigation costs and cover for certain consultant exposures, helping clients respond proactively where issues arise. 

In a market where uncertainty remains around regulation and liability, having a clear and well-structured D&C PI product is essential. The reality is that even with delays in legislation, claims are still being made and responsibilities tested.

At BIA, we believe our D&C product provides a practical solution to eligible insureds. Whether the risk sits at the smaller end of the market or involves more complex project delivery, we are well placed to support our brokers and clients with coverage that reflects today’s exposures. 

Important Notice

Berkley Insurance Company (limited company incorporated in Delaware, USA) ABN 53 126 559 706 t/as Berkley Insurance Australia is an APRA authorised general insurer. Information provided is general only, intended for brokers and has been prepared without taking into account any person’s particular objectives, financial situation or needs. Insurance cover is subject to terms, conditions, limits, and exclusions. Underwriting criteria applies. When making a decision to buy or continue to hold a product, you should review the relevant policy documents.