Professional Insurance

Design & Construction Insurance

A building contractor that provides design/design and construct services to their clients assumes the role of a “professional” and as such is subject to additional liabilities and responsibilities.

Many building contractors in this situation are unaware of these liabilities and do not take them into consideration in their risk management plans. Design services may be undertaken in-house or sub-contracted to an external consultant. Regardless, you are liable to your client for any claims arising out of damage, loss or injury incurred as a result of a breach of professional duty.

Professional Indemnity policies are “claims made”, which requires a policy to be in place, and for you to notify your insurer within the current policy period, of any circumstances that you become aware of that may give rise to a claim.

Common questions on indemnity


Case Study

A large commercial builder signed a D&C contract with a principal. The design component was 100 per cent outsourced to another party. Several months after the commencement of the project, it became clear that the design was faulty.

The entire design was outsourced, so the design contractor (and the design contractor’s insurance) are usually expected to respond to the claim however what if the insurer denies liability, or they don’t have the correct insurance in place, have used up the limit of their liability, or they’ve since gone into administration? The legal proceedings to recover from the design contractor could take years and even then, the full amount may never be recovered (if anything is recovered at all).

The builder must continue with the work or risk being in breach of contract. This means all the mitigation and re-design works are at the expense of the builder.

While the builder did not undertake the design themselves, they are responsible for the design under the contract, making them responsible for design faults and rectification of those faults. Where a D&C PI policy is in place, with the correct coverage, it will respond in this situation and the claim will be paid. This allows the builder to remediate the works and continue on with the project, hopefully with little interruption and conflict with their principal.


Success stories

  • Knight Frank Valuation & Advisory

    Nick​​​​ Bell - Partner

    The advice and service provided by Cos and his team is exceptional. Apart from industry knowledge expertise, the additional value-add offerings around risk management are well received.

  • Oxigen

    James Hayter - Director

    Oxigen continues to enjoy a productive relationship with Planned Cover that has supported our practice for over 25 years and in ways that extend beyond the provision of insurance cover and professional advice. The Planned…

  • FK

    Mark Murphy - Managing Partner

    The Planned Cover relationship supports our high standards of design and project delivery performance by partnering with the FK board and leadership team on various risk mitigation strategies and by tailoring insurance solutions that adapt…

  • Ashton Associates

    Mark Ashton - Director

    The service provided has been exceptional and the Perth Office has always been there for us obtaining competitive quotes, improving our insurance understanding through seminars, and providing advice on those complex service contracts.


    Bryce Dodd - Managing Director

    Planned Cover, led by Marie and the team, has been our trusted insurance provider for over two decades. Their prompt, professional service and expertise in professional indemnity and public liability insurance have been invaluable to…

  • Ashburner Francis

    Brian Kenny - Managing Director

    Our partnership with Planned Cover has been ongoing for many years, and offers peace of mind by helping us navigate the complex world of professional insurance.

  • CMP Consulting Group

    Greg Chalmers - Director, CMP Consulting Group

    Planned Cover has provided CMP’s Professional Indemnity for almost the entirety of our 15-year history.  We have found their staff to be friendly, proactive and helpful in getting comprehensive policies in place for a reasonable…

  • GRC

    Andrew Brady - Managing Director

    With a myriad of services, clients and sectors that GRC covers, the team at Planned Cover has been instrumental in sourcing insurance that meets our ever-evolving business by knowing how we operate and how we…

  • Covey Associates

    Kevin Covey - Director

    Covey Associates has been using Planned Cover for their Professional Indemnity Insurance needs for over 20 years. Thanks to Marie Bailey’s exceptional customer service and personalised approach, along with her extensive knowledge of all thing’s…


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