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What limit of Professional Indemnity Insurance does a Building Designer require

2 min read

Table of Contents

The right level of Professional Indemnity insurance for a Building Designer isn’t one-size-fits-all. It depends on several important factors that should be reviewed carefully:

1. State Licensing Requirements #

Each state or territory in Australia may have minimum PI insurance requirements for licensing as a Building Designer. It’s essential to check what’s required in your region to ensure compliance.

👉 You can refer to our State-by-State Insurance Guide for more information.

2. Association Memberships #

Professional associations often require their members to hold a minimum level of PI cover. This is usually outlined in their membership conditions, so make sure you’re meeting these standards if you’re affiliated with a professional body. For Building Designers, see below for association insurance requirements:

3. Type of Work You Do #

The nature of your projects can significantly influence the level of cover you need:

  • Residential vs. Commercial: Commercial projects often carry higher financial risks, especially if a claim could involve business interruption losses.

  • Complexity and Risk: Higher-risk or bespoke designs may increase your exposure and the likelihood of claims.

4. Project Value and Scope #

The overall value of the projects you work on matters. If something goes wrong, what’s the maximum potential financial impact? Your PI insurance should reflect the scale of your exposure.

5. Client and Contractual Requirements #

Some clients—especially on larger or government projects—may specify a minimum PI cover level in their contracts. Always review contract terms carefully and ensure your insurance meets or exceeds those requirements.

Even if you’re meeting regulatory or contractual minimums, it’s important to assess your personal risk exposure. Larger, more complex projects or working with high-value clients may warrant a higher level of insurance.

For tailored advice, please speak with one of our insurance brokers. They can help assess your specific risks and recommend the right level of cover based on your work, obligations, and goals.