PI insurance construction projects need, and who on the project carries the design

PI insurance on construction follows the design, and modern procurement moves the design around. On a traditional contract the consultants carry it. On design and build the contractor does. On a specialist package the subcontractor does for their element. Whoever carries it needs the cover.

Following the design

Ask who is responsible for the drawings, the calculations and the specification on this project. That party carries design liability and needs professional indemnity at whatever limit the employer specifies. A contractor who never needed it becomes a firm that needs it the day it tenders for design and build.

What employers specify

A limit, frequently in the aggregate, and very often a requirement to maintain cover for a period after practical completion. Public sector frameworks add insurer criteria. The post completion requirement is the one that surprises firms, because it outlives the job.

Where claims come from

Design that did not meet the employer's requirements, coordination failures between packages, inadequate specification, and errors in inspection or certification. The line between a design failure and poor workmanship is frequently the whole dispute, and it is why these claims involve several insurers.

Questions people ask about pi insurance construction

Who needs PI on a construction project?

Whoever carries design liability: consultants on a traditional contract, the contractor on design and build, specialist subcontractors for their own packages.

How long must it be maintained?

Employers commonly require cover for a stated period after practical completion, which is why run off is planned rather than optional.

Does it cover workmanship?

No. Workmanship sits with contract works and public liability. Professional indemnity answers for the design.

Sources

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