Design and Construction Insurance

Potentially. A contractor may retain or assume liability to the principal even when a consultant performs the design. The answer depends on the contracts, appointments, services and applicable law. Obtain legal advice on contractual liability and insurance advice on available cover.

Not automatically. The policy is directed to covered professional liability, not the ordinary cost of correcting poor workmanship or defective construction. A matter involving both design and construction issues must be assessed against the facts and the policy wording.

Not ordinarily. Those exposures generally require separate policy sections or policies. The boundary between policies depends on their wording, so they should be reviewed as part of the overall insurance program.

A retroactive date can limit cover for professional services performed before the date shown in the policy. Changing the date or losing continuity may affect protection for past work. Confirm the proposed retroactive cover before replacing or cancelling an existing policy.

Cover may be available for liability associated with disclosed novated contracts, but it is not automatic. The contract structure, assumed liabilities, professional services and insurer requirements should be reviewed before placement.

There is no universal limit. Relevant factors include contractual requirements, project values and types, potential loss severity, aggregation, defence costs, the basis of the limit, excess, balance sheet capacity and market availability. KBI can help assess these factors and present available options; you remain responsible for selecting cover appropriate to your circumstances.

Insurers commonly request a completed proposal, turnover and fee information, details of professional services, projects and contracts, consultant arrangements, qualifications, risk management procedures, existing insurance and claims or circumstance history. Additional information may be required for complex or higher-risk activities.