COMPARISON GUIDE
D&C Insurance vs Standard Professional Indemnity
They're both types of PI insurance - but they're not interchangeable. Here's when you need Design and Construct cover specifically.
Manual
Key Difference
Construction
Built For
Specialist
Underwriters
THE KEY DIFFERENCE
Standard PI excludes manual work. D&C Insurance includes it.
If you're a builder who provides any professional advice or design input, standard Professional Indemnity won't cover claims arising from your construction work. That's the gap D&C Insurance fills.
CORE DIFFERENCE
Two Types of PI, Two Different Purposes
Both protect against claims from professional advice. The key difference is how they treat physical work.
For "Pure" Professionals
Designed for professionals who give advice but don't physically do things themselves. Think accountants, IT consultants, lawyers.
- Professional advice claims
- Design errors
- Manual/physical work
- Construction activities
For Construction Professionals
Specifically designed for those who both provide professional advice AND do physical building work. Bridges the gap.
- Professional advice claims
- Design errors
- Manual/physical work
- Construction activities
DETAILED COMPARISON
Feature-by-Feature Breakdown
See exactly how Standard PI and D&C Insurance differ on key coverage areas.
| Feature | Standard PI | D&C Insurance |
|---|---|---|
| Designed for | Consultants, advisors, professionals | Builders, contractors with design input |
| Professional advice claims | Covered | Covered |
| Design errors | Covered | Covered |
| Manual/physical work | Usually excluded | Included |
| Vicarious liability (subcontractors) | Sometimes | Usually included |
| Construction-specific risks | Not designed for | Specifically designed for |
| Typical industries | Accounting, IT, consulting, legal | Builders, D&C contractors, trades |
| Insurers who offer it | Most PI insurers | Specialist construction underwriters |
WHEN YOU NEED D&C
You Need D&C Insurance If...
Standard PI won't cut it in these situations. You need cover specifically designed for construction.
Builder Doing Design Work
You draft plans, amend designs, or specify materials as part of your building services.
D&C Contract Responsibility
You take design responsibility on design-and-construct contracts - even if you engage consultants.
Construction-Linked Advice
You provide professional advice as part of construction services, not just advice in isolation.
Design Risk in Your Services
You carry design risk as part of your building services - standard PI typically excludes construction work.
Design Coordination Role
You coordinate design consultants and take overall design coordination responsibility on projects.
WHEN STANDARD PI MAY WORK
Standard PI Might Be Sufficient If...
If you fit these categories, standard Professional Indemnity may be appropriate for your needs.
Pure Consulting/Advisory
You provide consulting or advisory services with no physical work involved.
Design-Only Professionals
You're an architect or engineer who designs but doesn't build.
Advisory Project Management
You advise on projects but don't take construction responsibility.
Non-Construction Professions
You work in accounting, IT, legal, or other non-construction fields.
WARNING
The Risk of Getting It Wrong
If you're a builder with standard PI (not D&C), you might think you're covered. But when a claim comes in, the insurer could decline it because it relates to manual/construction work that's excluded from your policy.
We've seen this happen. A builder takes out "Professional Indemnity" through a generalist broker who doesn't understand construction. The policy has a manual work exclusion buried in the wording. Years later, there's a design-related claim, but because it arose from a construction project, the insurer declines.
By then, it's too late.
The builder is defending the claim out of pocket - potentially hundreds of thousands of dollars in legal fees and damages.
Key takeaway: If you're a builder or contractor who does any design work, make sure your PI policy is specifically designed for construction - not a standard PI policy with construction exclusions.
How to Check Your Policy
If you already have PI insurance, check the policy wording for these critical items:
-
01
Manual Work Exclusion
Does the policy exclude claims arising from physical/manual work?
-
02
Construction Exclusion
Does it exclude building/construction activities?
-
03
Definition of "Professional Services"
Does it include construction-related professional services?
-
04
Vicarious Liability
Does it cover errors by subcontractors you engage?
Not sure what your policy covers? Talk to us - we can review your existing cover and advise whether it's appropriate for your work.
The right policy isn't about price - it's about actually being covered when you need it.
COMPARISON FAQS
Common Questions
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
Not Sure Which Cover You Need?
Talk to a specialist construction insurance broker. We'll help you understand your risks and find appropriate cover.