Does Builders Risk Cover Faulty Design?

The ISO specimen excludes faulty design and specifications, while its ensuing-loss terms may treat separate damage differently. Builders risk therefore should not be read as design-error insurance or a professional liability policy. Ask the insurer to explain the design exclusion and any resultant-damage exception for a separate covered event. Review the architect or engineer’s professional liability insurance and contract. Check whether design changes, temporary works, or experimental construction trigger additional restrictions in the builders risk quote. An architect’s or engineer’s professional liability policy may respond to a claim alleging negligent design services, subject to its own insureds, exclusions, and claims-made terms. That does not guarantee payment for correcting the project itself. Ask both insurers to distinguish the design fee or redo cost from resulting physical damage, and check the builders risk ensuing-loss language and professional policy limits.