Why do you need design and construction insurance?
Unexpected delays
A small mistake in the 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 and construction process – 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. Tool insurance secures 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?
Professional indemnity insurance
Professional indemnity insurance is there to cover a design or construction business for work-related complaints. You always strive to ensure projects are delivered on time, on budget and to a high standard. However, if a client alleges your work caused subsidence or that your advice harmed their business, they could seek compensation. Even simple, honest mistakes can create significant costs in construction. If a client feels that you or an employee has made a costly miscalculation, professional indemnity insurance provides financial backup.
Cyber and data insurance
Protecting the data you hold could be crucial to the vitality of your business and the more technology advances, this becomes increasingly important. The communication you engage in, from taking enquiries and booking jobs to providing updates, mainly happens digitally. You’ll also likely store 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.
Tool insurance
Construction companies and design firms rely on all kinds of tools, from software to screwdrivers and power grinders. Without these, work cannot go ahead, so instances of theft or water damage could affect your ability to generate revenue. If something throws a spanner in the works, tools insurance can assist with repairing or replacing kit, helping your business spring back into action. People who travel between sites may find the risk to their portable equipment to be even higher, so they often take out special insurance for on-the-go items.
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 construction 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 £10* 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 policies from at least 10% of our customers.
Why is design and construction insurance important?
No level of expertise or preparation can completely eliminate business risks, so design and construction insurance acts like a safety net for mishaps and chance occurrences that can’t be foreseen.
If you make an honest mistake during building repairs, or accidentally share sensitive information with the wrong customer, the size of compensation claims can be significant. Therefore, it’s best to help safeguard against such instances.
Design and construction insurance can also bolster your business against general risks, including those posed by weather-related property damage and site break-ins.
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