Design & Construct Risks

Design and Construction Professional Indemnity
Construction industry professionals such as Contractors and builders who provide design or other professional services in addition to or as part of their construction activities for clients assume the additional responsibilities and liabilities of a design professional. Claims against Design & Construct Contractors almost always involves professional (e.g. design) and non-professional (e.g. workmanship) services. The problem is that where there are two or more proximate causes of a loss and one of those causes is excluded, then legally the entire claim may be excluded!

Why do I need this cover?
Whether or not you provide these professional services in house or engage an external consultant you assume liability to your clients or other parties for claims arising out of injury or loss incurred as a result of a breach of professional duty in the provision of these professional services. Many public and private organisations are becoming increasingly aware of this exposure and are therefore including the requirement for professional indemnity insurance in their design and construct tender documents. Design & Construct firms face significant liability exposures from the multi-disciplinary professional services they provide on a daily basis. Getting it wrong can have catastrophic financial consequences so managing those exposures and purchasing high quality, comprehensive professional indemnity insurance is no longer an option – it’s a necessity for survival. 

The majority of “of the shelf” professional indemnity policies available with Australian Insurers do not always adequately cover such exposures. Your design and construct professional negligence exposure is therefore best insured under a tailored design and construct professional indemnity policy.

Cooper Professional Risks (CPR) specialise in arranging insurance for the construction and engineering industries and have access to more than 20 different sources of professional indemnity insurance. Unlike many of our competitors, they are not aligned with any one particular insurer and therefore can truly act in the client’s best interests.

What am I being covered for?
Professional Indemnity insurance provides essential financial protection for Construction (Design & Construct) consultants against potential losses as contractors increasingly take on design liability either by employing their own in‐house design professionals or by assuming liability where they sub‐contract out the design element. 
Key Exposures are design failure, Inadequate or incorrect advice, design, specification, Inadequate supervision in project management, inappropriate or incorrect certification, lack of experience, poor work documentation, Poor communication with clients.

Who needs this cover?
The types of occupations that can be exposed to the Design and Construct type risks include any Engineering or Architectural risks involving Construction or Project management services, which can include Mining, Oil and Gas Contractors, Civil infrastructure contractors (such as water pipelines, sewers, roads, power), General industrial, Commercial contractors, Customised machinery and equipment designers and manufacturers and even Residential Building contractors.

Who can help?
An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you from market knowledge.

Call a good one. Call CPR Insurance on 07 3123 1137 or 0439 530910. Email is enquiries@professionalrisk.com.au.

Liberty Design & Construct Policy Wording 
 

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