INSURANCE
Substitute products - Professional Indemnity insurance revisited P Joe Keiper Southern Region Manager, Master Builders Insurance Brokers
40 | Master Builders Victoria
roduct supply shortages and time pressures in the construction industry are causing many builders to seek substitute products and materials for projects. While often a substitute product performs similarly to the original specification, should a substitute product fail to perform as expected, the builder may end up being pursued for the costs. While ensuring any product changes are signed off by the architect/engineer should reduce the risk of something going wrong, if a problem were to occur, a professional indemnity policy is designed to protect your business from potential losses. Historically Professional Indemnity (PI) insurance was purchased almost exclusively by engineers, architects, or designers and the like. Even without the issues
caused by substitute products, when directing clients to particular designers, or entering into Design and Construct contracts, contractors are likely to legally assume a degree of liability arising out of injury or loss arising out of professional services — even if you’ve outsourced this work to an external company.
What is Professional Indemnity Insurance? Professional Indemnity insurance is designed for professionals who provide advice or services to their customers. It protects your business against legal costs and claims for damages to third parties which may arise out of an act, error, omission or breach of professional duty in the course of your business.
Volume 76 Issue 02
