Client contracts can materially affect a Building Designer’s professional exposure. Professional Indemnity Insurance should not be assumed to cover every contractual obligation accepted by the business.

Which clauses can create concern? #

Examples include:

• Broad indemnities.
• Fitness-for-purpose obligations.
• Guarantees of outcomes.
• Unlimited liability.
• Responsibility for other consultants.
• Unusual warranties.
• Long insurance maintenance periods.
• Departures from proportionate liability where applicable.

A contract can impose responsibilities beyond those the Building Designer would otherwise have at law. The additional contractual liability may not be fully insured.

What insurance requirements should be checked? #

A client may require specified Professional Indemnity and Public Liability limits, particular policy conditions, evidence of insurance and cover maintained for several years after completion.

Confirm that the requested insurance is commercially available before signing.

A Certificate of Currency only confirms certain policy details. It does not prove that every activity, indemnity or contract term is covered.

Can Webber Insurance review the requirements? #

Webber Insurance can provide a high-level review of the insurance requirements and identify matters that may affect placement or coverage.

We do not provide legal advice. Where legal interpretation, negotiation or contract amendments are required, we can arrange referral for a more detailed contractual insurance review.