If you’re a builder, you’ve likely heard of Professional Indemnity (PI) Insurance for Design & Construct (D&C)contracts. But here’s the catch: this cover isn’t just for those formally taking on design responsibilities.
Even if you’re not operating under a D&C contract, you are still exposed.
You Don’t Have to Be Designing to Be Liable
Many builders assume PI insurance is only for architects, engineers, or those offering in-house design. But the moment you slightly move something on-site, give input on plans, sign off on documents, coordinate consultants, or simply forget to pass on a client’s change — you could find yourself facing a PI claim.
For example:
- You forget to relay a last-minute colour change.
- A small on-site tweak is made to accommodate a variation.
- A subcontracted designer makes an error, but you’re seen as the coordinating party.
Even in these construction-only scenarios, courts and insurers often find the builder responsible for overseeing the process — especially when their name is on the contract or head agreement. That’s where PI cover steps in.
PI Cover: What It Actually Does
Professional Indemnity Insurance protects you against:
- Claims for financial loss due to design errors or omissions (even if made by a third party)
- Accusations of failing in your professional duty
- Legal costs and defence, even if the claim is baseless
- Vicarious liability — meaning you can still be liable for others under your direction, like subcontractors or consultants
It’s not about whether you designed something from scratch. It’s about whether someone believes you could have prevented the issue — and that’s a very real risk in the building game.
But Doesn’t That Mean Premiums Will Be Huge?
Not at all. Premiums are based on your actual exposure. A construction-only builder with minimal design involvement will generally pay a significantly lower premium than a builder doing 100% in-house design work.
That’s why it’s so important to get the cover tailored with a broker who understands the product — so you’re not overpaying, but also not leaving a gap.
Why Be Covered?
At Be Covered, we understand the fine print in your contracts and the reality on site. We help builders like you figure out if PI D&C insurance is relevant — and how to structure it properly so you’re not left exposed.
We know that whether you’re working under a formal D&C contract or not, your name could still end up on the claim. And we manage claims from start to finish, so it’s just as important to us that your cover responds when it matters — keeping you protected and your reputation intact.
