Construction workers on-site with building design wireframe representing Design and Construct insurance for professional advice

Design and Construct Insurance.

Standard Public Liability covers accidents and physical damage - but it doesn't cover your professional advice. D&C Insurance does.

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UNDERSTANDING THE COVER

What is Design and Construct Insurance?

Design and Construct Insurance (also called D&C Insurance, Builders PI, or Construction Professional Indemnity) is a specialised type of Professional Indemnity insurance for builders and construction professionals who provide design input as part of their work.

Here's the thing: if a client claims your professional advice, design work, or project management caused them financial loss, standard Public Liability won't help you. PL covers physical damage and bodily injury. D&C Insurance covers the financial loss from your professional services.

Let's use a multi-storey car park to show how three different insurance types respond to three different claims:

01

Public Liability

A piece of scaffolding falls from your worksite and crushes a parked car below.

Physical injury or property damage to third parties during construction.

02

Professional Indemnity

A structural engineer designs the support beams too thin. Nothing collapses, but the car park can't safely hold SUVs - the owner loses rental income while it's remediated.

Financial loss from a "pure" professional error by a consultant like an architect or engineer.

03

Design & Construct

You're the builder who also provided the design. The car park ramps are built too steep for vehicles to exit safely, so you have to pay millions to tear them out and rebuild them correctly.

A specialised form of PI for builders that covers errors in both the design and the actual construction work - which standard PI often excludes.

You typically need D&C Insurance if you:

Draft your own designs or amend existing plans

Provide advice on materials, methods, or specifications

Sign off on work or provide certifications

Take on design risk as part of your construction services

Work on D&C contracts where you carry design risk

Key Takeaway

Public Liability covers accidents. D&C Insurance covers your professional advice and design risks.

Not sure if you need it? Talk to us - we'll help you work out what cover fits your situation.

KEY DIFFERENCES

D&C Insurance vs Standard Professional Indemnity

Not all PI policies are built the same. Standard Professional Indemnity often excludes manual work - which is a problem if you're a builder. Here's how D&C differs.

Manual/physical work
Usually excluded
Included
Design advice & specifications
Covered
Covered
Vicarious liability (subcontractor errors)
Sometimes
Usually included
Project management errors
Covered
Covered
Built for construction risks
No
Yes
Typical industries
Consultants, accountants, IT
Builders, contractors, trades with design input

Need more detail on when Standard PI falls short?

Our full comparison guide covers policy wording traps, real claim scenarios, and how to check if your current PI actually covers your construction work.

D&C vs PI: Full Guide

WHO NEEDS IT

Who Needs Design and Construct Insurance?

If you provide any professional advice or design input as part of your construction work, you likely need D&C cover.

01

Residential Builders

If you design homes, modify existing plans, or take responsibility for the overall design outcome on D&C contracts - you need this cover.

02

Commercial Builders

Commercial projects carry significant design risk exposure. Coverage limits are typically $5M-$20M depending on project values.

03

Fit-Out Contractors

If you design retail or office fit-outs, specify materials, or coordinate trades with design responsibility - you carry design risk.

04

HVAC Contractors

Designing mechanical systems, specifying equipment, or providing advice on ventilation requirements? That's professional advice that needs cover.

05

Electrical Contractors

If you design electrical systems, provide specifications, or certify work - not just install to someone else's design - you may need D&C.

Other trade?

Get in touch

Not sure if your trade needs D&C Insurance? We'll help you work out what cover actually fits your situation.

Talk to us

POLICY SCOPE

What Design and Construct Insurance Covers

D&C Insurance protects you when your professional advice, designs, or specifications cause a client financial loss. Here's what's typically included.

Construction manager reviewing 3D structural model on tablet, demonstrating Design and Construct risk management
Construction manager reviewing 3D structural model on tablet, demonstrating Design and Construct risk management

Usually Covered

Design errors and omissions - mistakes in your plans, drawings, or specifications
Professional advice - recommendations on materials, methods, or construction approaches
Project management failures - errors in coordinating design elements or consultants
Vicarious liability - errors made by sub-consultants you engage
Legal defence costs - representation even if the claim is baseless
Specification mistakes - incorrect specifications that cause rework or delays
Breach of professional duty - failing to meet the standard expected of your profession

Not Typically Covered

Manual work defects - faulty workmanship is covered by Contract Works or Liability
Bodily injury or property damage - that's Public Liability territory
Intentional wrongdoing or fraud - deliberate acts aren't insurable
Known issues not disclosed to insurer - always disclose potential claims
Fines and penalties - regulatory penalties aren't covered
Work in excluded jurisdictions - some policies exclude certain states/countries
Contractual guarantees beyond professional duty - performance guarantees may be excluded

PRICING

How Much Does D&C Insurance Cost in 2026?

D&C Insurance premiums depend on several factors. Here's what affects your price and what you can expect to pay.

Factors That Affect Your Premium

01

Annual turnover

Higher revenue generally means higher premiums - more work means more exposure

02

Type of work

Commercial and multi-storey work typically costs more than residential

03

Contract sizes

Larger individual contracts = larger potential claims = higher premiums

04

Claims history

Previous claims or circumstances will affect your pricing

05

Subcontractor arrangements

Using design subcontractors you're responsible for affects risk profile

Indicative Premium Ranges (2026)

Residential Builder (under $1M turnover)

$2,500 - $6,000 per year

Residential Builder ($1M - $3M turnover)

$5,000 - $12,000 per year

Commercial Builder ($3M+ turnover)

$10,000 - $30,000+ per year

These are indicative ranges only. Your actual premium depends on your specific circumstances. Read our detailed cost guide or get a quote for accurate pricing.

SPECIALIST UNDERWRITERS

Our D&C Insurance Partners

We work with specialist underwriters who actually understand construction risks. These aren't generalist insurers - they're specifically designed to cover builders and construction professionals doing design work.

Insurance Partners

Keystone Underwriting
Berkley Insurance Australia
Chase Underwriting
Hutch Underwriting
Dual Underwriting
Woodina Underwriting
CFC Underwriting
Scope Underwriting
Liberty Specialty Markets
FTA Insurance
+ more

RECENT PLACEMENTS

How We've Helped Construction Professionals Get D&C Cover

D&C Insurance can be tricky to place - many insurers don't understand construction risks. Here's how we've helped clients who were struggling to find cover.

"The biggest issue we see are construction professionals thinking that their existing Public Liability cover will protect them against claims for financial loss, when they are providing design and construction services."

Jack O'Hagan, D&C Insurance Specialist

COMMON QUESTIONS

FAQs About Design and Construct Insurance

Design and Construct Insurance (also called D&C Insurance or Builders PI) is a type of Professional Indemnity insurance specifically for builders and construction professionals who provide design input. It covers claims of financial loss caused by design errors, specification mistakes, or professional negligence in your advice. Unlike standard PI, it's designed to work alongside physical construction work.
You typically need D&C Insurance if you: draft your own designs or amend existing plans, engage sub-consultants but take responsibility for their work, provide advice on materials or construction methods, or sign off on work or certifications. If you only build to someone else's plans with no design input, you may only need Public Liability and Contract Works.
Public Liability covers physical damage or bodily injury to third parties - for example, if scaffolding collapses onto a neighbour's car or someone trips on your worksite. D&C Insurance covers financial loss caused by your professional advice or design work - for example, if a design error means a structure needs to be demolished and rebuilt. Most builders need both types of cover.
Contract Works Insurance covers physical damage to the construction project during the build (fire, storm, theft, vandalism). D&C Insurance covers claims arising from your professional advice and design work. They protect against completely different risks - Contract Works protects the physical asset, D&C protects you from professional liability claims. Many builders need both. Learn more about Contract Works Insurance.
Premiums vary based on your annual turnover, type of work (residential vs commercial), typical contract sizes, claims history, and subcontractor arrangements. Residential builders might pay $2,500-$12,000 per year, while commercial builders with higher turnover typically pay $10,000-$30,000+. Read our detailed cost guide or get a quote for accurate pricing based on your situation.
From July 2026, the Design and Building Practitioners Act requires certain building practitioners in NSW to hold Professional Indemnity insurance. If you provide design services in NSW, you should check if you fall under the mandatory requirements. Read our NSW requirements guide for full details.
Yes, D&C Insurance typically includes vicarious liability cover. This protects you for design errors made by sub-consultants that you engage for a project. This is particularly important if you take overall responsibility for design coordination on a job. However, you should also ensure your subcontractors have their own PI cover.
You can get D&C Insurance through a specialist construction insurance broker like Tank Insurance. General insurers often exclude 'manual work' from their PI policies, which makes them unsuitable for builders. We work with specialist underwriters including Pen, Mecon, Hutch, Chase, and Berkley who understand construction risks and can provide appropriate cover. Get a quote or call us on 02 9000 1155.
Jack O'Hagan - D&C Insurance Specialist

REVIEWED BY

Jack O'Hagan

D&C Insurance Specialist

Last updated: January 2026

Experience

6+ Years

Insurance & Finance

Specialty

D&C, PI & Hard-to-Place

Construction Risks

Background

Law & Finance

Bachelor of Law, RG146

Network

Steadfast Group

Australian Owned

Construction professional reviewing blueprints on building site

Protect Your Design & Build Risks

Don't leave your professional advice exposed. Get a D&C Insurance quote that covers both your designs and your construction work. Same-day quotes from specialist underwriters.

Expert Review: 21/01/2026

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