Smart risk management starts long before construction begins.
Whether you’re planning a boutique apartment building, a heritage fitout, or a luxury coastal home, property development carries one constant: risk. And while design vision, budgets, and timelines often dominate early-stage conversations, too many developers overlook a critical piece of the puzzle insurance.
At All Star Brokers, we work with developers, project managers, architects, and consultants to build tailored coverage plans that protect the entire project lifecycle. From site acquisition to post-completion handover, the right insurance strategy can safeguard your financial investment, limit exposure, and ensure smoother delivery.
Here’s what you need to consider before you break ground.
1. Start with Contract Works and Public Liability But Don’t Stop There
Most developers are familiar with Contract Works Insurance, which covers damage to the works under construction such as fire, storm damage, or vandalism. It’s essential, but not the full picture.
Consider a commercial heritage project like Lockhart Krause’s BTC Fitout, where adaptive reuse required custom glazing and integration into 100-year-old brickwork. Unexpected structural issues mid-build meant rapid response and temporary halts. Without the right cover for materials, time delays, and reworks, the project’s cost exposure could have ballooned.
Alongside contract works, Public Liability Insurance protects against injury or damage to third parties during the build. This is critical on urban infill sites, retail tenancies, or any high-foot-traffic area like Studio PFA’s Grand Seiko Melbourne boutique, where glass installations and after-hours deliveries intersected with pedestrian zones.
A baseline insurance structure typically includes:
- Contract Works – for physical damage on site
- Public Liability – for injury or property damage to others
But the best insurance strategies go further, depending on your delivery model and project profile.
2. Understand Where Professional Indemnity Fits
Many assume Professional Indemnity Insurance only applies to architects and engineers. But if you’re coordinating design input, engaging consultants directly, or managing contract admin as firms like UpScale PM do PI cover becomes an essential layer of risk protection.
In design-led projects where high performance and finish quality are non-negotiable, a small oversight in documentation can have costly consequences. One misstep in a services layout or glazing detail can lead to delays, cost blowouts, or even structural compromise.
Whether you’re a developer working closely with consultants or a client-side project manager like UpScale PM, ensuring PI coverage aligns with your responsibilities is key to limiting legal exposure if things go wrong.
3. Coverage Should Reflect the Complexity of the Design
Not all buildings are created equal and neither is the risk profile.
High-end residential homes like Wood Architecture’s Lurline Bay Residence push the limits of structural design, glazing integration, and environmental exposure. These types of builds involve bespoke detailing, ocean-facing exposure, and often non-standard materials.
In such cases, insurance needs to account not just for materials but for sequencing, performance risks, and weather delays. Double-glazed panels custom-fit to slimline framing? Imported stone for wet areas? Extended lead times and limited supply mean any damage or rework impacts both time and budget.
For these projects, we often recommend:
- Specifying custom cover for delays caused by material failure or supply chain disruption
- Confirming your contract works policy accounts for high-spec materials that exceed standard building values
- Considering advance loss of profit (ALOP) cover if a delayed completion affects settlement or leasing income
4. Think Beyond Completion with Defects and Liability Coverage
Once construction is complete, your risks don’t disappear they evolve.
Latent or structural defects often emerge months or even years after handover. For developers or project managers coordinating complex systems or innovative building methods, Latent Defects Insurance (LDI) provides long-term peace of mind. It protects against issues that weren’t visible during practical completion but can compromise the structure or building systems down the track.
This is especially relevant in:
- Multi-residential projects sold off-the-plan
- Heritage or adaptive reuse sites, where existing structures are retained
- Projects where design innovation adds complexity, like bespoke retail fitouts
In retail, a small defect in a façade system can disrupt business or result in warranty claims. In residential, waterproofing failures can cost thousands in repairs and reputational damage.
Developers who secure LDI can offer additional protection to buyers or investors, and strengthen their credibility in the marketplace.
5. Clarify Responsibility for Project Governance and Legal Exposure
For development companies, joint ventures, or SPVs, another layer to consider is Management Liability and Directors & Officers (D&O) Insurance.
Even if you’re not the builder or design lead, you’re still exposed to legal action relating to:
- Contractual obligations
- Consultant disputes
- Shareholder complaints
- Regulatory issues
This coverage is particularly valuable when your team is managing multiple consultants or funding sources, or where the project involves a public-facing entity or investor group.
Client-side managers like UpScale PM often act as project stewards ensuring communication, compliance, and consultant performance are aligned. Their role in managing delivery adds structure, but the underlying legal and financial risk still rests with the asset owner or development entity which is why D&O cover is a smart investment.
Final Thoughts: Align Your Risk with Your Reality
Insurance shouldn’t be an afterthought or a generic template. It should be an active tool in your risk management strategy designed around your project’s specific structure, design profile, and delivery method.
Whether you’re delivering a heritage fitout in Sydney’s CBD, managing a boutique multi-res in Byron, or building a high-street flagship for a luxury brand, every stakeholder deserves clarity and cover.
At All Star Brokers, we partner with developers, builders, project managers, and architects to build tailored insurance programs that support smart delivery from feasibility to finish.