Design and build insurance for the construction industry
Produced in partnership with Womble Bond Dickinson
Design and build insurance for the construction industry

The following Construction guidance note Produced in partnership with Womble Bond Dickinson provides comprehensive and up to date legal information covering:

  • Design and build insurance for the construction industry
  • What is design and build?
  • What is D&B insurance and why is it needed?
  • What does D&B insurance cover?
  • Mitigation cover
  • What is not covered?
  • Pricing risk

What is design and build?

At its simplest, design and build (D&B):

  1. is a project delivery system under which a single entity (the D&B contractor) assumes responsibility for both the design and construction phases of a project

  1. can provide the employer with a single point of contact and responsibility, reducing the employer’s risk. Although the D&B carries more risk for the D&B contractor, this is addressed through pricing

What is D&B insurance and why is it needed?

D&B insurance is, essentially, a form of professional indemnity insurance cover, and bears a number of similarities to the cover available to design professionals such as architects, surveyors and engineers. For example: Professional indemnity insurance—construction projects

  1. the conditions, extensions and exclusions in standard D&B wording will in many respects be materially the same as that in an architect’s professional indemnity policy

  1. It is also on a ‘claims made’ (ie claims will be covered as long as they are notified within the policy period, regardless of when the alleged act actually took place) and annual, and

  1. Unlike certain other design professionals however, insurance for D&B contractors is not regulated by any professional body (for example the RICS in the case of surveyors) and cover is not therefore subject to any minimum terms or requirements

Given the similarities with other PI policies,