What is Design and Construction Insurance?

There are many insurance options for builders, but one of the most prominent is design and construction insurance. This type of insurance protects architects, especially when they have design and construction plans. It can also cover other broader business activities, ensuring adequate protection of assets and liabilities.

What is Design and Construction Insurance?

What is design and construction insurance?

Let's take a closer look. Design & Construction (D&C) Professional Indemnity Insurance is specifically designed for contractors whose projects are under the following delivery or contract models:
  • Construction management
  • Arranging work
  • Design and construction
This type of insurance is comprehensive, with protection of the contractor's assets during the construction period. If you are a builder, you need this cover to protect against legal liability claims for any ongoing construction project.

What is covered?

Design and construction insurance policy generally has two parts:

The first part covers your assets and property. Therefore, you are protected from accidental damage, theft, or loss of assets on site. Most materials or assets are insured, including your tools, plant and machinery, and other equipment. This first part is useful for builders and contractors like you for the following reasons:
  • Obtain an extended cover for property damage and loss when the asset is in transit or offsite storage.
  • Obtain an extended insurance term for coverage on inspection and commission.
  • Add cover for content from the principal in addition to the contract value.
  • Add cover to the on-site structure before work begins.
  • Protect plants, tools, and equipment
  • Take advantage of the sum insured for a variety of expenses, including inflation.
  • Be safe after an insured event, which may include tasks such as debris removal.
  • In the case of damaged property, D&C insurance includes protection against the professional fees charged for its restoration or replacement.
Remember that coverage only applies when you are still under construction. It also includes administrative responsibility.

For the second part, legal liability coverage is provided. Claims may be due to errors, omissions or violations during and after your construction activities. With your D&C insurance, you can get a comprehensive policy that can also cover liability for completed operations. This is important because in such cases of angry clients you cannot be directly at fault.
Your consultant or subcontractor may be responsible for the error. However, you are held responsible for their mistakes. In this situation, it is always better to be safe than sorry. The main features here include the following cover:
  • Automatic recovery
  • Violation of privacy
  • Employee dishonesty.
  • Responsibility for the contract
  • Claim for preparation costs
  • Continuous cover
  • Consumer Protection Act
  • Responsibility for the joint venture
  • Missing documents
  • Backbiting or slander
  • Legal responsibility
  • Intellectual Property Violations
Your construction activities include the professional services you provide, which may include:
  • Designing
  • Drafting
  • Town planning
  • Conducting feasibility studies
  • Provide technical advice
  • Surveys, including quantity, building, land, and aerial surveys
  • Provide technical specifications
  • Inspection site
  • Programming and time flow management
  • Project and construction management
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D&C Professional Compensation Insurance is not made equal. Grace Insurance is here to help you find the right solution that meets your needs. Contact us today for help..