Construction insurance policies: what does professional services mean?

In brief - Courts attribute different meanings to "professional services" depending on the context

Major and complex construction projects generally involve comprehensive insurance programmes to manage the flow of risk and liability arising in relation to various potential losses involving death and personal injury, material damage and loss of time and consequential losses.

Many of the policies will involve the concept of "professional services", for example:

Standard Professional Indemnity (PI) cover for professionals involved in the project will insure claims arising from "professional services" Public and products liability and contracts works policies will exclude certain claims arising from "professional services" (often subject to write backs for property damage and personal injury). What does "professional services" mean in these policies?

"Professional services" covered

Courts generally give a wide interpretation to what is "professional" in PI policies, considering the term as one which probably involves "no more than advice and services of a skilful character according to an established discipline" ( GIO General Ltd v Newcastle City Council [1996] NSWSC 322).

Indeed, the fact that a...