A Construction Contractor can have professional liability exposure even when architects, engineers or other consultants perform the design work.

What can create design responsibility? #

Examples include:

• Contractor-designed elements.
• Design coordination or review.
• Engaging professional consultants.
• Value engineering.
• Shop drawings or technical design.
• Specification changes.
• Professional advice or project management.
• Contractual responsibility for subcontracted design.

The contract, not only who performs the design, can determine the contractor’s exposure.

What if all design is subcontracted? #

The contractor may still accept responsibility to the client for consultants it engages. The consultant’s Professional Indemnity Insurance protects that consultant and does not automatically replace the contractor’s cover.

Does Public Liability cover design claims? #

Generally, Public Liability focuses on certain personal injury and property damage claims. It should not be assumed to cover financial loss or other allegations arising from professional services.

What information should be provided? #

Tell Webber Insurance:

• The design responsibility accepted.
• Services performed internally and externally.
• Types of consultants engaged.
• Contract and project values.
• Largest and most complex projects.
• Contractual Professional Indemnity requirements.
• Consultant insurance arrangements.

Webber Insurance can provide a high-level review of insurance requirements and arrange referral for a detailed contractual insurance review where needed.