Professional Indemnity for Architects & Engineers
From sketch to site, your clients rely on you for clarity. Our Architects & Engineers professional indemnity wording is built for design work - and the risks that come with it.
When a novated design meets a live site
Archie Tect is asked to take over a townhouse project mid-build. The design has been novated from the previous architect. During installation, the contractor finds that plumbing and electrical fixtures don’t align with the as-builts. Rework starts. Costs rise. The principal demands answers and a Certificate of Currency before trades return.
Archie calls their broker. Are they exposed for design supplied by the previous firm? Does the contract’s novation change who carries the risk? Will the policy respond if the client alleges a professional error and chases delay costs? The broker needs clarity on the wording, any novated design cover, and what to attach with the quote.
That is where Hutch steps in. Our Architects & Engineers wording pairs a civil liability PI insuring clause with clear terms for professional services. Defence costs are paid in addition to the limit for covered claims unless the Schedule says otherwise. Optional extensions such as Novated Contracts and Principals Indemnity may be available.
The broker downloads the Fact Sheet and Policy Wording, uploads key contract pages, and quotes on Ebix Sunrise Exchange or SCTP. If a referral is triggered, our underwriters talk through the clauses so the broker can set expectations and move the file forward.
Download the Fact Sheet and Policy Wording, then quote on Sunrise or SCTP.
Coverage at a glance
Core sections
Section 1: Professional Indemnity (PI) - civil liability for professional design and related advisory services (claims-made and notified).
Section 2: Public Liability (PL) - third-party injury and property damage (occurrence-based; included where shown on the Schedule).
Section 3: Cyber - available on Sunrise as a separate section; on SCTP it is provided via an endorsement applied to all quotes (aggregate limit as shown on the Schedule).
Defence costs: paid in addition to the limit for covered claims, unless stated otherwise on the Schedule.
Who it's for
Architectural and engineering practices providing professional design and related advisory services.
Commonly placed: architectural & building design; civil; mechanical; electrical and building services; interior and landscape design; drafting/detailing; project advisory.
Optional extensions
Novated Contracts: liability assumed under novation.
Principals Indemnity: indemnity to a contract principal.
Proportionate Liability Waiver: where contract requires it.
Mitigation Costs: reasonable costs to prevent loss.
Previous Business: provides cover for professional services undertaken before the policy inception date, when performed by a director, partner or principal of the insured under a prior business of the same nature, as disclosed and noted on the Schedule.
Subject to underwriting and the Policy Wording.
Also see: Financial Services Guide (FSG)
Key covers
- Defence costs: paid in addition to the limit for covered claims, unless stated otherwise on the Schedule.
- Professional Indemnity: civil liability cover up to $5M any one claim, up to $10M in the aggregate.
- Public Liability: up to $20M limit of liability.
- Cyber add-on (included): $25,000 for third-party data breach/network claims and cybercrime loss of funds.
- Statutory Liability: $100,000 sub-limit.
- Investigation Expenses: $100,000 sub-limit.
- Emergency Defence Costs: $50,000 sub-limit.
Appetite & Fit
(quick guide)
| Typically Suitable For | May be Suitable For | Not Suitable For |
|---|---|---|
Disciplines: Civil, Mechanical, Electrical, HVAC; Project & Construction Management; Construction Supervision; Architectural & Building Design; Interior Design; Drafting/Detailing; Land Surveying; Town Planning. Fields of work: Environmental Impact Assessments; HVAC projects; individual dwellings and low-rise buildings; industrial & commercial projects under $10M. Profile: turnover ≲ $2M, limits up to $5M, 1 reinstatement, >3 years’ experience, largest contract value under $10M. |
High-rise building construction (low percentage considered). Rail projects. |
Disciplines: Structural, Chemical, Nuclear, Geotechnical/Soil, Lift/Elevator, Environmental, Hydraulic/Fire, Marine, Mining, Plumbing, Petrochemical, Design & Construct, Pre-purchase building inspections; Building/Marine/Mines/Quantity Surveying; Building Certification. Fields of work: Bridges/tunnels over 8m; dams/reservoirs; foundations, piling, underpinning and soil testing; marine projects (jetties/wharves/piers); mining; nuclear/atomic; oil & gas; petrochemical; pollution control or clean-up; waste water management and water treatment. |
Examples only. Subject to underwriting. Always refer to the current Policy Wording for terms, conditions, limits and exclusions.
Broker FAQs
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Is this one wording for both architects and engineers?
Yes. It’s designed for professional design and related advisory services. Always refer to the PDS for scope and limits.
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How do defence costs (Costs & Expenses) apply under this wording?
- PI (Section 1): Costs & Expenses are in addition to the Indemnity Limit, unless the Schedule states they’re included in the aggregate limit.
- What’s included: reasonable legal and experts’ fees for investigating, defending or settling a claim (with our prior consent).
- Deductible interaction: if the Schedule shows the deductible is inclusive of Costs & Expenses, the insured pays for Costs & Expenses up to the deductible amount.
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How does the wording handle novated contracts and site involvement?
- Novated contracts: Cover for liability assumed under novation may be available via an optional Novated Contracts extension, subject to underwriting and the policy terms. Include the novation clause when you quote.
- Principals Indemnity: Where your client must indemnify a principal for their professional services, a Principals Indemnity extension may be available (subject to underwriting).
- Site involvement: Attending site to inspect, certify, or supervise design intent is typically contemplated as a professional service. Performing or managing construction, commissioning, or manual works is not PI cover and may require other policies.
- What to upload at quote:
- Scope of services
- Novation or deed pages
- Any “fitness for purpose” warranties
- Proportionate liability wording
- Hold-harmless/indemnity clauses
- Limits of liability
- Where to confirm: Refer to the Policy Wording and endorsements schedule for exact terms, conditions, limits and exclusions.
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Any common exclusions I should flag early?
- Building or construction work (performing works rather than professional services)
- Cladding-related exposures
- Cost estimating exposures
- Unqualified or unlicensed practice
- Occupation or use of property, plant or machinery beyond professional advice/design
- Pre-purchase inspections
- Trading debts or return of fees
- Use of unauthorised or obsolete data
Industries we generally decline (appetite):
- Mining
- Oil & gas
- Petrochemical
- Nuclear/atomic
- Financial advice / AFSL
- Legal services
Heads-up on appetite (separate to exclusions): we generally decline risks in mining, oil & gas, petrochemical, nuclear/atomic, financial advice/AFSL, and legal services. If your client operates in these sectors, talk to us before you quote.
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What documentation do I need to quote?
Recent resume or company profile, claims history, service description and typical contracts. Higher limits or novated/site roles may require key contract pages and prior cover details (including retroactive date).
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How do I place this?
- Review the docs – Download Policy Wording (HCL3AE).
- Quote - Use Ebix Sunrise Exchange or SCTP.
- Bind - Bind and Close instantly.
- Issue Documents – Issue automatically generated Schedule and CoC; and share with your client.
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How do I lodge a claim?
Notify Hutch Claims as soon as practicable and provide relevant documents (contract, scope, correspondence). Our in-house claims team will confirm next steps.
Why brokers choose Hutch
Broker-centred process and clear sections (PI, PL). Built for day-to-day placement, with straightforward wording and schedules your clients can understand.
Fast quote pathways in Ebix Sunrise Exchange and SCTP. Enter, quote and bind in minutes. No double-keying; no closings; invoices auto-populate.
Service when a referral is triggered. We typically respond within one business day. Need a second set of eyes on novation or proportionate liability? Our Financial Lines Underwriters are ready to help.
Wording designed for architects & engineers. Defence costs are paid in addition to the limit for covered claims (unless stated otherwise on the Schedule), with clarified exclusions and smart optional extensions (Novated Contracts, Principals Indemnity, Proportionate Liability Waiver, Mitigation Costs, Previous Business).
The clear way to better cover. Built for brokers. Backed by Lloyd’s and other insurers.
Downloads
Policy Documents
Underwriter Spotlight
Ross Chambers
Head of Financial Lines
Ross brings a rich work history and a passion for insurance intricacies. Armed with a double degree in Economics and Finance, Ross began his career in a graduate program, where he gained exposure to diverse insurance facets, sparking his industry interest. Transitioning to underwriting in 2014, he specialises in professional indemnity insurance, relishing its complexity.
This page is intended for licensed insurance brokers. General advice only. It does not take into account your client’s objectives, financial situation or needs. Coverage is subject to the terms, conditions, limits and exclusions in the Policy Wording. Available via Ebix Sunrise Exchange and SCTP. Hutch follows the General Insurance Code of Practice and ASIC RG 234 guidance in our communications.