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Professional Indemnity | Master Builders Insurance Brokers
Cover for your advice and professional services.
Legal defence costs
Design and construct professionals
Project management professionals
Construction management professionals
Height safety professionals
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.
What’s the cost of defending a claim?
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:
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.