The Subcontractor Trap: PI and GL Risks in Multi-Tiered Construction Projects

Modern construction projects are becoming increasingly complex, with multiple layers of contractors, subcontractors, consultants, and specialist trades all contributing to the final outcome. While this structure can deliver efficiency and expertise, it can also create significant uncertainty when things go wrong.

When a defect, design error, property damage incident, or financial loss emerges years after completion, one critical question often arises: who is actually responsible?

Is liability sitting with the head contractor, the subcontractor, the design consultant, or somewhere in between? Does Professional Indemnity (PI) insurance respond, or is it a General Liability (GL) matter? What happens when contractual responsibilities differ from operational realities on site? And how do insurers navigate claims where multiple parties have overlapping roles and insurance arrangements?

In today’s environment, projects frequently involve extensive subcontracting chains, design-and-construct obligations, and varying standards of risk transfer. As a result, determining liability and identifying the correct policy response can be far more complicated than it first appears.

Join Berkley Insurance Australia as we explore the hidden exposures that can arise within multi-tiered construction projects and examine how PI and GL risks interact across the contracting chain.

Designed for brokers with clients in the construction industry or brokers wanting an insight into to the challenges of writing insurance for construction risks, we will consider:

1. PI exposures for multi-tiered construction projects

2. What to be aware of when broking these kids of risks

3. GL implications for multi-tier construction projects

4. Common contractual requirements for these kinds of projects

Understanding these risks before a loss occurs may be the difference between a manageable claim and a costly dispute.

Webinar: The Subcontractor Trap: PI and GL Risks in Multi-Tiered Construction Projects

Date: Wednesday 9 September at 11:00am AEST

Registrations: Click here to register and be part of the session