Why do you need design and construction insurance?
Unexpected delays
A small mistake in the architectural designs for a new housing development creates big problems when the groundworks need to be revised. The project is delayed by months as a result, causing frustrations for the housing association that hired your services and the tenants on their waiting list.
Your client contact accuses you of acting with negligence during the design phase of the project. Fortunately, your insurance includes professional indemnity cover, so legal costs and compensation are taken care of.
Phishing attack
Much of your communication with contractors and customers is carried out via email - and every day your inbox is full and busy. Unfortunately, cybercriminals know this and target you for a social engineering breach. You receive an email that appears to be from a contractor and follow a link you believe is genuine - however, the link was malicious and part of a phishing attack.
With the help of cyber and data insurance included as part of a tailored construction insurance policy, our experts can help with recovery from the breach and quickly get you back to business.
Damaged laptop
A laptop containing critical project data is damaged after coffee was spilt on it by an employee on their way to perform a site audit. Your IT manager says the data can be recovered, but the machine itself is beyond repair. This comes at a time when the expense of purchasing a new computer is something you could do without.
Portable equipment insurance helps secure your essential construction and design kit against the risk of accidental damage and theft.
What cover is included in insurance for design and construction professionals?
At Hiscox, we cover a wide range of design and construction businesses. We sell different business insurance products to each. Exact cover availability will depend on the type of work you do. If you have questions about what’s available to you, get in touch.
Professional indemnity insurance
Professional indemnity insurance can help to cover you against claims of negligence relating to the design or specification of construction projects. For example, issues with feasibility studies, technical calculations or surveys performed by you or your subcontractors.
This cover applies to various professions in the design and construction industry. You may be an architect, surveyor, construction project manager or building service engineer, for example.
With this insurance, you can also get cover for claims relating to deficiency in design and Housing Grants Adjudication.
Cyber and data insurance
Protecting your data could help safeguard your business. The communication you engage in, from taking enquiries and booking jobs to providing updates, mainly happens digitally. You may also hold customer and contractor information on a computer system.
Cyber and data cover can provide financial, practical and reputational support whether you accidentally share sensitive data with the wrong party or fall victim to a cyber-attack.
Portable equipment insurance
Construction and design businesses like architects, surveyors and building contractors rely on all types of equipment, from powerful laptops to theodolites and GPS systems. Instances of theft, loss or accidental damage could affect your ability to work.
If something throws a spanner in the works, portable equipment insurance, technically known as property away and in transit cover, can help to repair or replace kit. For technical or electrical malfunctions, consider equipment breakdown insurance.
Certain design and construction firms may also require employers’ liability insurance if the business has staff.
If you’re not sure what you need, tell us a little more about your design and construction business. We’ll help you to build your quote and explore any other insurance needs.
Build my coverInsurance for design and construction: FAQs
How do I know how much design and construction insurance I need?
The amount of insurance cover you need depends on factors such as the scale and value of planned projects, staff numbers and the type of work you perform.
For instance, if you deliver big projects for high-value clients, then your mistakes could come with higher penalties, so you may require more professional indemnity cover than a sole trader.
How much does design and construction insurance cost?
The cost of design and construction insurance depends upon the covers you select as well as the amounts you require of each. Hiscox business insurance costs start at just £8.40 per month* and are determined by factors such as cover limits – the maximum amount we’ll pay in the event of a claim.
With Hiscox, you can build custom cover, pay monthly or cancel with no fees. This means we’re there to support your construction firm as it grows and adapts.
*Figures based on an average of all business insurance policies sold to at least 10% of our customer base between April 2023 and April 2024.
Why is design and construction insurance important?
No level of expertise or preparation can eliminate business risks, so design and construction insurance acts as a safety net for unforeseen errors and problems.
If you provide inaccurate technical drawings or survey results, for example, it could lead to compensation claims over negligent services.
Therefore, insurance tailored with professional indemnity cover can help to safeguard against such instances.
Related articles and guides
What business insurance does a sole trader need?
A sole trader working in design and construction may have slightly different needs to a business owner. Identify what could affect cover with our sole trader insurance FAQ.
The difference between the self-employed and sole traders
Self-employed construction professionals are not the same as sole traders. Learn the difference, and what it means for your insurance, with our explainer.
What is a business asset?
Discover what a business asset is and ensure you know how to help protect what your company owns.