04.06.2019

Now may be an opportune time to revise/audit your insurance policies as you are heading to renewals…

As a Building Designer you are deemed to be someone who is an expert in your field and as such clients would expect a level of knowledge and skill when working on their projects. To protect yourself and your staff and to manage any legal risk it is always good to revise /audit your various insurance obligations at point of renewal.

Why Do Building Designers Need Insurance?

Like any business, it makes sense to protect yourself and your business against potential claims.

Tasks a Building Designer may conduct on a day to day basis might include:

  • Preparing technical drawings based on rough sketches and drawings given to you by architects, engineers and surveyors
  • Checking drawings for accuracy
  • Using judgement and initiative to adjust and change detailed drawings
  • Creating drawings using CAD (Computer Aided Design)
  • Contract administration and management of a project
  • Management of outputs

Some instances where having the right insurance could save you a huge amount of money, time and stress include:

  • Claims made against you for negligence in preparing technical drawings and plans
  • Claims that you have failed to make the necessary or required adjustments and changes to drawings
  • Claims of negligence in the management of outputs
  • Claims that you have failed to maintain a prime working knowledge of the technological changes within programs such as CAD.

A quick audit guide for your current insurance:

  1. Do you have all the various Insurance covers you need depending on you being small independent company of Building Designers. These are:  Professional Indemnity Insurance, Personal Accident and Illness Cover, Public Liability Insurance, Tax Audit Cover, Business Insurance, Management Liability Insurance and Cyber Insurance’;
  2. Are you with an  Insurance Company that works specifically with Building Designers, Draftsmen, Architects or other professionals within the same industry – or even have a specific Schemes covering these industries?. It is important that you have experts who you can rely on with your specific needs;
  1. Are you covered at the right levels in Victoria?

The VBA requires Building Designers to carry a minimum of $1 Million of Professional Indemnity cover, with Defence Costs in addition to this limit.

The policy of insurance required must specify a limit of indemnity of either:

  1. Where the costs of the defence of Claims (Defence Costs) are included in the limit of indemnity – Not less than $1.5 Million for any one Claim, and in the aggregate for all Claims during the period of insurance; or
  2. Where Defence Costs are not included in the limit of indemnity –
    1. Not less than $1 Million for any one Claim, and in the aggregate for all claims during any one period of insurance, not including Defence Costs; and
    2. Not less than $500,000 for any one claim, and in the aggregate for all claims during any once period of insurance, in respect of Defence Costs.

Our insurance partner Webber Insurance provides BDAV Members an Insurance package that is $2 Million. This more than meets the VBA’s requirement.

Webber Insurance can help with your audit:

The BDAV has partnered with Webber Insurance who have expertise in this area. They can help you audit your current insurance and advise you on what you need in order to give you the protection you need.

The details for contacting them are provided below:

Please advise Webber Insurance Services that you are a member of the BDAV when you contact the team.