Construction professional reviewing building designs - D&C Insurance cost guide

PRICING GUIDE

How Much Does Design and Construct Insurance Cost?

A practical guide to D&C Insurance pricing in 2026. What affects your premium, indicative ranges, and how to get accurate quotes.

$2.5k

Starting from

24-48h

Quote turnaround

50+

Insurers

THE SHORT ANSWER

D&C Insurance premiums typically range from $2,500 to $30,000+ per year for most builders, depending on your turnover, type of work, and risk profile.

That range is pretty wide - so let's break down what actually determines your premium and how you can get an accurate quote for your specific situation.

PRICING FACTORS

What Affects Your D&C Insurance Premium?

Understanding these factors helps you anticipate costs and take steps to improve your risk profile.

01

Annual Turnover

Higher turnover means more projects and more exposure. Expect to pay roughly 0.3-0.8% of your annual turnover in D&C premiums.

02

Type of Work

Residential single dwellings carry lower risk than multi-storey or commercial. Civil/infrastructure work typically has the highest premiums.

03

Maximum Contract Value

A $500k residential job has different risk exposure than a $5M commercial project. Larger contracts mean larger potential claims.

04

Claims History

Past claims or circumstances affect your premium. A clean history helps, but even with claims we can often find cover.

05

Subcontractor Arrangements

Engaging design consultants and taking responsibility for their work adds vicarious liability exposure to your risk profile.

06

Limit of Indemnity

Higher cover limits mean higher premiums. Common limits range from $1M for residential to $10-20M for large commercial projects.

2026 PRICING

Indicative Premium Ranges

These are rough guides based on what we've seen across our portfolio. Your actual premium will depend on your specific circumstances.

Entry Level

Residential Builder

Turnover: Under $500k

$2,000 - $4,500 per year
Growing

Residential Builder

Turnover: $500k - $1M

$3,500 - $7,000 per year
Established

Residential Builder

Turnover: $1M - $3M

$5,000 - $12,000 per year
Commercial

Commercial Builder

Turnover: $1M - $5M

$8,000 - $20,000 per year

Note: These are indicative ranges only. Your actual premium depends on your specific risk profile, claims history, and coverage requirements. Get a personalised quote for accurate pricing.

REAL EXAMPLES

What Our Clients Actually Pay

Here's what D&C Insurance actually costs for builders we've placed recently. These are real premiums (rounded) for real businesses.

Residential Builder QLD

Specialises in custom homes and renovations. Does their own design work for smaller projects and engages architects for larger builds.

Annual Revenue ~$1.8M
Cover Limit $2M
Premium ~$4,200/yr
Commercial Fit-Out Contractor NSW

Office and retail fit-outs across Sydney. Provides design input on layouts and specifications, coordinates subcontractors.

Annual Revenue ~$4.5M
Cover Limit $5M
Premium ~$11,500/yr
HVAC Contractor VIC

Designs and installs commercial HVAC systems. Provides engineering specifications and coordinates with builders on new developments.

Annual Revenue ~$2.2M
Cover Limit $2M
Premium ~$6,800/yr
Electrical Contractor NSW

Residential and light commercial electrical work. Designs electrical systems and provides certification services.

Annual Revenue ~$650K
Cover Limit $1M
Premium ~$2,400/yr
Modular/Prefab Builder QLD

Commercial modular construction. Full D&C responsibility including structural design coordination with engineers.

Annual Revenue ~$3M
Cover Limit $5M
Premium ~$4,500/yr
Solar Installation Company SA

Residential and commercial solar installations. Designs system layouts and provides performance specifications.

Annual Revenue ~$1.2M
Cover Limit $2M
Premium ~$5,100/yr

Context: These examples are from placements made in the past 12 months. Premiums vary based on claims history, contract types, subcontractor arrangements, and other factors. Your quote may differ.

COST REDUCTION

How to Reduce Your D&C Insurance Premium

While pricing depends on your risk profile, there are practical steps you can take to improve your insurability and potentially reduce your premium.

01

Review Your Contracts

Unlimited liability clauses are red flags for insurers. Limiting liability to professional fees or a reasonable multiple can significantly affect your premium.

02

Maintain Good Documentation

Robust systems for documenting design decisions, client approvals, and variations mean better defence if a claim arises - and better premiums.

03

Ensure Subcontractors Have Cover

If your design subcontractors have their own PI insurance, that reduces your vicarious liability exposure. Make it a contract condition.

04

Consider Your Excess

A higher excess can reduce your premium. But make sure you can actually afford the excess if you need to claim.

05

Work With a Specialist Broker

A broker who understands construction risks knows which insurers to approach. We regularly save clients thousands by knowing where to place their cover.

Builder reviewing construction blueprints and design plans for D&C Insurance quote

Getting an Accurate Quote

Online calculators can give you a ballpark, but they can't assess your specific risk profile. For an accurate quote, we'll typically ask about:

  • What type of construction work do you do?
  • What's your annual turnover?
  • What's your largest typical contract value?
  • Do you employ or engage design subcontractors?
  • What limit of indemnity do you need?
  • Have you had any claims or circumstances in the last 5 years?

With this information, we can approach our panel of specialist underwriters and get you accurate pricing within 24-48 hours for most risks.

Skip the guesswork. Get a real quote from specialist construction underwriters who understand your business.

COST FAQS

Common Questions About D&C Insurance Pricing

D&C Insurance is priced for construction risks, which have higher claim frequency and severity than many professional services. Design errors in construction can lead to expensive remediation. A mistake in a building's waterproofing could cost hundreds of thousands to fix. The premium reflects this higher exposure.
Yes, most policies can be paid via premium funding. This is essentially a short-term loan that lets you spread the cost over the year. There's usually a small interest charge, but it helps with cash flow. Learn more about premium funding.
Possibly. Like any insurance, claims history affects future premiums. However, one claim doesn't necessarily mean huge increases - it depends on the nature and size of the claim. The bigger issue is often finding an insurer willing to continue cover after a claim, which is where having a specialist broker helps.
Different brokers have access to different insurers and underwriting agencies. A specialist construction broker like Tank has access to markets that generalist brokers may not. We also know how to present construction risks in a way that gets better terms from underwriters.
Standard Professional Indemnity typically excludes manual/construction work, which makes it unsuitable for builders. D&C Insurance is specifically designed for construction professionals who provide both design input and physical building services. See our full comparison guide.
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

Builder reviewing construction plans

Get an Accurate D&C Insurance Quote

Skip the guesswork. Tell us about your business and we'll get you accurate pricing from specialist construction underwriters.

Expert Review: 21/01/2026

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