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Professional indemnity for architects and engineers
Design professionals carry the longest tail in insurance: a drawing issued today can be the subject of a claim a decade on. In NSW, registered design practitioners and professional engineers on regulated buildings must hold professional indemnity cover. Here is what the policy does, what NSW requires, and how to compare quotes.
- NSW Design and Building Practitioners rules
- Claims-made cover and run-off explained
- No phone number needed to request quotes
What professional indemnity does for a design practice
Professional indemnity covers claims that your design, specification, certification or advice caused a client or third party a loss, and pays the legal costs of defending them. For architects and engineers the exposures are structural failure, defective design, non-compliant documentation, cost overruns blamed on the design, and contract administration. Public liability sits alongside it for injury and property damage on site visits and at your office.
The policy is claims-made: the policy in force when the claim is made responds, not the one in force when the drawings were issued. That makes continuous cover, and run-off cover when you retire or close, essential.
What NSW requires
NSW regulates design and engineering work on class 2, 3 and 9c buildings under the Design and Building Practitioners Act 2020.
| Practitioner | Requirement | Since |
|---|---|---|
| Registered design practitioners | All design work must be covered by a professional indemnity policy, including liability from when the practitioner first became registered | 1 July 2022 |
| Registered professional engineers | A policy giving an adequate level of cover for their engineering work on regulated buildings, or an approved alternative arrangement | 1 July 2022 |
| Registered building practitioners | NSW’s insurance page says they must also be indemnified for their building work | From 1 July 2027, per NSW |
A practitioner who claims to be insured when they aren’t faces penalties, and the regulator can ask for proof of insurance as a condition of registration. Other states run their own engineer registration schemes; a broker checks what applies to you.
What changes the price
No prices on this page. Compare quotes for your practice in one request.
How to compare professional indemnity for a design practice
Architects and engineers: professional indemnity questions
Do engineers need professional indemnity insurance in NSW?
Yes, for engineering work on regulated buildings. NSW requires registered professional engineers to hold a policy giving an adequate level of cover, mandatory since 1 July 2022.
Do architects need professional indemnity insurance?
Registered design practitioners in NSW must have all their design work covered by professional indemnity insurance. Elsewhere, client contracts and registration boards usually require it.
What limit do architects and engineers need?
Client contracts commonly ask for $1 million to $10 million, and government and large commercial projects often more. Check each contract before you sign.
What is run-off cover?
Professional indemnity that continues after you stop practising, so claims about past work are still covered. For design work the tail can be many years.
Can architects and engineers compare professional indemnity online?
Yes. Tell us your discipline and the quote form compares our insurer panel. Large or unusual practices are arranged by a broker.
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