Professional Indemnity | Master Builders Insurance Brokers

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Professional Indemnity

Cover for your advice and professional services.

Cover for

Civil liability
Legal defence costs
Design issues
Specification errors
Incorrect advice


Covered professions

Design and construct professionals
Project management professionals
Construction management professionals
Height safety professionals
Building inspectors

What is Professional Indemnity Insurance?

If you provide advice or professional services, it's vital in protecting your business against claims of incorrect or incomplete advice.

Professional Indemnity Insurance protects you against claims made against you arising from your advice or professional services, causing financial loss or other damages to third parties.

It costs time and money to defend against a claim. You could be held responsible not only for your actions but also for those of your partners, employees and even consultants.

Professional Indemnity Insurance protects your business against legal costs and claims made by third parties.

Examples of exposures include:

  • Design and construct
  • Incidental design and specification alterations made during construction
  • Building design work
  • Project and construction management
  • Vicarious liability for negligence of other professionals, i.e. architects and engineers
  • Product specification

We have the expertise to advise on the critical coverage requirements relevant to your specific business activities.

Key benefits
icon investigate claims
Covers costs of investigating, defending and settling claims
icon covers costs
Covers the cost of public relations consultancy
icon tailored
Tailored solutions to suit your needs
icon legal defense
Protects your business against legal costs

What’s the cost of defending a claim?

Even if found to have had no or minimal responsibility for a financial loss or damage, the legal cost for a defending a claim could easily be $50k–$100k, or much higher.

Many businesses would not have the funds to pay these costs, let alone afford any settlement or damages to a third party.

Professional Indemnity Insurance enables you to access expert legal firms to assist in defending a claim. Where you are legally liable to pay the third party's costs, they assist in settling the claim to a third party – protecting your business and your livelihood.


Why do you need this policy?

Here's an example:


Max is a residential builder who promotes his business as a custom home builder.

The architect and engineer he engages incorrectly design the slab for a sloping block build, resulting in severe structural issues to the home.

When the homeowner pursues recovery of costs, the builder is involved in the lawsuit, incurring over $60k in legal expenses, and a small portion of the damages, which ended up being an additional $45k.

Because Max had a professional indemnity policy, the Insurer covered the total $105k cost incurred, less his excess.

Advice from our experts:

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These policies are written on a 'claims made' basis, which means claims can only be accepted when there is a current policy in force with an insurer.

Joe Keiper Southern Region Manager

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Professional Indemnity policies are complex, and insurers all have different exclusions concerning the types of activities covered. Understanding what isn't covered is important for all businesses, and is extremely important for clients in the construction industry.

There are many exposures construction businesses face, changes in the insurance market, and how your insurer's view of your risk might change from one year to the next. Therefore getting the right advice is key.

Joe Keiper Southern Region Manager

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It is crucial to discuss any issues with your broker that you may have regarding design errors or other specification issues. We can then ensure that your insurer gets notified promptly. Not notifying circumstances promptly that eventually do give rise to a claim can prejudice your coverage under the policy or even result in the claim not being covered.

Joe Keiper Southern Region Manager

Why choose Master Builders Insurance Brokers?

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We're the industry specialists

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