In the complex world of construction, many businesses are involved not just in the physical building process but also in design, certification, and compliance roles. This includes architects, engineers, building certifiers, quantity surveyors, and contractors who undertake design responsibilities. Mistakes or omissions in these professional services can lead to significant financial losses for clients or third parties. Professional Indemnity (PI) Insurance is vital for protecting these businesses from claims arising due to such errors, providing peace of mind and financial security.

Having PI cover is especially important in the design and construct space because contractual obligations often require it, and disputes over design or consultancy work can be costly and damaging to reputation. Without this insurance, businesses risk facing potentially crippling legal costs and compensation claims.

Important: PI Insurance does not cover physical defects, faulty workmanship, or construction-related damage. Instead, it protects against claims made by third parties for financial losses or other liabilities resulting from your professional services, including:

• Compensation for financial loss due to errors or omissions in plans, specifications, or drawings
• Legal defence costs and settlements arising from professional negligence claims
• Costs related to breach of professional duty or contract in design or consultancy work
• Claims for inaccurate advice or failure to meet regulatory or building code requirements
• Damages awarded for failure to perform professional services to the required standard

PI is often a mandatory requirement under Design & Construct contracts and for building certifiers, architects, engineers, and surveyors working on construction projects. It helps protect your business against financial loss and legal expenses from disputes over your professional advice or services.