Two engineers going through routine checks

Design & Construct vs standard Professional Indemnity

Design & Construct vs standard Professional Indemnity – who needs what?

Professional Indemnity insurance is no longer just for the traditional professionals like Accountants, Solicitors, Consulting Engineers and Architects.  Today, many other entities need Professional Indemnity insurance and standard PI policies are not suitable.

Berkley Insurance Australia’s (BIA) Design and Construct (D&C) insurance policy is a Professional Indemnity (PI) insurance policy, specifically designed to cater to entities that perform the physical construction or manufacture of products, goods, structures or buildings as well as having responsibility for the provision of any design, advice or any other professional services relating to those works­.  The policy provides protection for an Insured against Claims for financial loss arising out of an act, error or omission in the course of their professional activities and duties. 

Who needs a D&C policy?

Any professional who provides designs or advice and is involved or responsible for the physical construction should consider a D&C PI policy. A standard PI policy is appropriate for a professional who purely gives advice or supplies designs but once that entity becomes responsible for the actual construction of a building they are better off with a D&C PI policy.

The BIA D&C policy has a broad definition of Activities & Duties that has been specifically designed to respond to the varied professional services that a D&C contractor may be responsible for. The coverage under a D&C PI policy is governed by the Activities & Duties in the policy.

Do we still need to purchase a Public & Products Liability Policy?

Yes.  It is not the intention of the D&C PI policy to provide coverage for those exposures covered under a public and products liability insurance policy.


If your client in involved with actual construction they should be covered under a D&C PI Policy. Contact your BIA Underwriter for a quotation.