Design and Construction Insurance
Design and Construction Insurance
What is Design and Construction Insurance?
Design and Construction Insurance is a specialised type of cover that protects builders, contractors, and design professionals involved in construction projects. It combines elements of professional indemnity and construction insurance to safeguard against risks that arise both before and during the building process. This includes design mistakes, project delays, material or structural failures, and damage that occurs while work is ongoing.
What does Design and Construction Insurance Cover?
Design and Construct Insurance can offer general protection which may include cover against:
What is typically not covered?
Contractual Liability Beyond Common Law
Known Circumstances or Prior Claims
Claims made if you don’t have an active policy in place;
Deliberate, Dishonest or Fraudulent Acts
Construction Defects Not Caused by Design
Work done before your retroactive date
Is Design and Construct Insurance Mandatory?
Design and Construct Insurance isn’t legally mandatory everywhere, but in Design and Building Practitioners Act 2020 (NSW) it soon will be for all registered building practitioners in New South Wales to hold adequate Professional Indemnity Insurance (PI) for their work.
Outside of this, it’s often required by contracts, clients, and principal contractors, especially on larger or complex projects. Many government, commercial, and design-and-build contracts specify minimum PI cover.
Who Needs Design and Construction Insurance?
Design & Build Contractors
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Design-and-build builders
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Residential builders
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Commercial builders
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Specialist contractors involved in both design and delivery
Construction Professionals
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Project managers
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Construction managers
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Building consultants
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Building inspectors
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Building surveyors
Design Professionals
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Architects
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Draftsmen
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Building designers
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Structural engineers
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Civil engineers
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Mechanical engineers
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Electrical engineers
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Fire engineers
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Geotechnical engineers
Specialist Trades Offering Design or Specification
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Plumbers providing hydraulic design
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Electricians providing layout or system design
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HVAC contractors who design systems
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Waterproofing specialists issuing specifications
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Facade contractors providing design solutions
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Steel fabricators offering design services
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Formwork and scaffolding designers
Consultants & Advisers
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Quantity surveyors
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Compliance consultants
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Certifiers
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Town planners (when design-related)
How Morgan Insurance Brokers can help you
Morgan Insurance Brokers specialises in finding tailored Design and Construction Insurance solutions for builders, contractors, and design professionals. They work with a wide network of leading insurers to secure competitive cover that meets both project requirements and legal obligations, including the upcoming mandatory professional indemnity requirements for NSW builders.
Their team helps you identify the exact level of protection you need, comparing policies for design errors, professional negligence, contract works, and liability exposures. They review exclusions, negotiate terms, and ensure the policy aligns with your contract obligations or project specifications.
Morgan Insurance Brokers also provides support with paperwork, insurer communication, and policy compliance, ensuring you secure the right insurance quickly and with minimal stress. If a claim arises, they act on your behalf to manage the process and achieve the best possible outcome.
