Contractors are increasingly taking on a design liability by employing their own in-house professionals or by assuming a liability when they sub-contract out the design element.
When undertaking contracts on a design and construct basis it is the Contractor who will be the client's target in the event of a design related problem. Even if a claim is ultimately the responsibility of another party, the costs of redirecting the liability can be high and success is far from guaranteed. The contractor will be responsible regardless of their ability to enforce an action against the negligent party.
This is where a Design and Construct (or Design and Build) professional indemnity insurance policy comes in, protecting the Contractors finances and their relationship with their client. Many clients now expect even the smallest of Construction Firms and Contractors to hold this class of insurance.
It's important to have some understanding of how Design and Construct insurance works to be able to make an informed decision on which product is best for your firm. Our guide covers the key points and will help you with this decision. Read Design and Construct - Guide to Professional Indemnity Insurance.