Design & Construct Professional Indemnity
Specialist PI for firms taking on both design and construct obligations
When design becomes part of the build
Bill Ding, a mid-sized builder, wins a multi-dwelling project. The principal novates the architect’s design contract across. Overnight, Bill isn’t just constructing... he’s responsible for design too.
His broker now needs Professional Indemnity cover that fits both sides of the agreement. The clock’s ticking, and the principal’s lawyers won’t let work start without a compliant certificate.
Where standard PI wordings fall short
Most professional indemnity policies are written for pure design or consulting firms. They can fall over once design and construction is provided by the same entity.
Novated contracts, proportionate liability waivers, and shifting lines of responsibility leave brokers chasing clarification at the worst possible time (contract signing.)
How Hutch keeps the project moving
Hutch’s Professional Indemnity for Design & Construct wording is built for the way these contracts actually work.
It clearly sets out what’s covered, what’s optional, and what’s excluded for D&C projects.
Optional extensions for Novated Contracts, Mitigation Costs, and Sudden & Accidental Pollution help brokers tailor cover to the build.
And with fast quote and bind on Ebix Sunrise Exchange or SCTP, brokers can deliver a compliant certificate before site works begin.
Coverage at a glance
Core sections
Civil Liability: covers claims first made and notified during the policy period arising from the conduct of the Professional Business (claims-made and notified basis).
Defence Costs: included within the Limit of Liability, with sub-limits forming part of the overall limit.
Reinstatement: available as shown on the Schedule, subject to policy terms and conditions.
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).
*Principals Indemnity is automatically included under Section 1 – Professional Indemnity.
Who it’s for
Australian firms with an annual turnover up to $10M, including builders taking on design responsibility and design practices delivering construct, novation, or site-involved contracts.
Maximum $5M any one project
All projects are below or equal to 4-storeys
Key optional extensions
Novated Contracts: indemnity for liability assumed under a disclosed, specified novated contract that relates to the Professional Business.
Proportionate Liability Waiver: cover is not denied solely because you have contracted out of relevant proportionate liability legislation.
Mitigation Costs: covers reasonable and necessary costs incurred to prevent or reduce a potential loss, provided notification is made promptly; sub-limit applies.
Sudden & Accidental Pollution: provides limited cover for rectifying your negligent act causing sudden and accidental pollution; sub-limit applies, with consequential losses excluded.
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.
Also see: Financial Services Guide (FSG)
Key Covers
- Civil liability for professional services tied to your design and construct scope (claims-made and notified).
- Defence Costs: included within the Limit for covered claims, unless stated otherwise on the Schedule. We may advance reasonable defence costs subject to policy conditions.
- Reinstatement of the Limit available as specified on the Schedule (not applicable to sub-limits).
- Court Attendance Costs are covered up to the amount shown on the Schedule (no deductible applies).
- Dishonesty of Employees is automatically included, subject to a sub-limit.
- Principals Indemnity: to the extent contractually required, covers any Claim (other than by an Insured) first made against the Principal and notified during the Policy Period, arising from a breach of professional duty in your conduct of the Professional Business.
Appetite & Fit
(quick guide)
| Typically suitable for | May not be suitable for | Not suitable for |
|---|---|---|
Builders taking on design responsibility under Design & Construct contracts. Design or engineering practices with novated, site-involved, or construct obligations under principal contracts. Established firms with experienced principals and annual turnover typically under $10M. |
Suitable on referral: appetite depends on contract structure, design responsibility, and requested extensions such as Novated Contracts or Proportionate Liability Waiver. Businesses that only provide supervision of construction-related activities or personnel which would normally be undertaken by a building contractor. |
Firms requesting cover for a single project. Also not designed for manufacturing operations where design responsibility is minimal or incidental to the fabrication. Businesses primarily with projects where design work is performed by their own staff. If professional advice or design input forms part of the scope, submit for referral. We’ll review the structure and contracts. |
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 wording different from a generic liability policy?
Yes. This is a Combined Liability Policy with a dedicated Professional Indemnity section written on a claims-made and notified basis for professional activities. Defence Costs in Section 1 are within the Limit of Liability, and D&C-specific optional extensions are available when shown as Insured (subject to underwriter approval).
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Do you cover Design & Construct activities performed on site?
Cover is for your professional services. Physical building or construction work performed by you (or on your behalf) is excluded, except where a claim arises from your advice/design/specification.
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How do novated contracts work under this policy?
If disclosed and specified on the Schedule, liability assumed under a novated contract related to the Professional Business can be covered.
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Can I waive proportionate liability in the contract and remain covered?
Yes - if the optional extension for this is taken up (subject to underwriter approval) - the policy won’t deny cover solely because you contracted out of applicable proportionate liability legislation, subject to policy terms.
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Do you cover sudden pollution events tied to our advice?
Optional. A sub-limited extension can respond to sudden and accidental pollution arising directly from your negligent act, error or omission, in conduct of the Professional Business. Consequential losses are excluded.
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What documentation do I need to quote?
- Annual turnover split between D&C contracts and non-D&C
- Limits requested
- Optional Extensions required and contract terms if applicable
- Claims history
- Details of in-house risk management
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How do I place this?
- Review the docs – Download Policy Wording (HCL1DC).
- 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
A broker-first quoting experience, built for today’s Design & Construct landscape.
Fast, smart quote pathways within Sunrise and SCTP mean brokers can enter, quote and bind in minutes. No double-keying. No closings. Invoices auto-populate.
When a referral is needed, you won’t be waiting long. Our Financial Lines Underwriters typically respond within one business day and are available to talk through complex contracts, novation, or proportionate liability scenarios.
Our wording is purpose-built for Design and Construct professionals, not retrofitted from general PI. Optional extensions like Novated Contracts, Proportionate Liability Waiver, Mitigation Costs, Sudden & Accidental Pollution, and Previous Business help align cover with how D&C firms actually work. Principals Indemnity is automatically included under Section 1 – Professional Indemnity.
Built for brokers. Designed for your clients' modern-day complexities. Backed by Lloyd’s.
The clear way to better cover.
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.