What type of insurance is required?
Under the Building Act 1993, most people who carry out or undertake work in building must be registered as building practitioners with the Building Practitioners Board and are required to carry the appropriate insurance. Building practitioners are required to show proof of insurance when registering.
There are 4 types of insurance a Registered Building Practitioner may require, these are:
- Domestic Building Insurance
- Professional Indemnity Insurance
- Public Liability Insurance
- Structural Defects/Builders Indemnity Insurance
Domestic Building Insurance
Domestic Building Insurance is required by all domestic builders who enter into domestic building contracts in which the contract price for the building work is more than $12,000. Insurance provides important protection for building consumers, in the event that a builder dies, becomes insolvent or disappears, and can't finish the building project or fix defects.
The Domestic Building Insurance Ministerial Order (No. S 98 Friday 23 May 2003) specifies the insurance policy required.
Professional Indemnity Insurance
Professional Indemnity Insurance is required by the following building practitioner categories and classes:
- Building surveyor
- Building inspector
- Quantity surveyor
- Engineer - Civil, Mechanical, Electrical & Fire Safety
- Draftperson - Building design (architectural, interior and services)
- Architect (Please note: architects are registered with Architects Registration Board Victoria)
Professional indemnity insurance indemnifies the practitioner against legal liability resulting from any claim or claims made during the period of insurance.
The Building Practitioners' Insurance Ministerial Order (No. S 91 Thursday 12 May 2005) (117KB) specifies the insurance policy required.
Public Liability Insurance
Public Liability Insurance is required by the following building practitioner categories and classes:
- Builder - Demolisher (low rise buildings, medium rise buildings and unlimited)
- Erector or supervisor (temporary structures)
Public Liability Insurance indemnifies the building practitioner against legal liability resulting from any claim or claims made during the period of insurance.
The Building Practitioners' Insurance Ministerial Order (No. S 91 Thursday 12 May 2005) (117KB) specifies the insurance policy required.
Structural Defects/Builders Indemnity Insurance
Builders Indemnity Insurance for Structural Defects is required by all commercial builders (unlimited).
The Building Practitioners' Insurance Ministerial Order (No. S 91 Thursday 12 May 2005) (117KB) specifies the insurance policy required.
Finding a Registered Building Practitioner
You can locate a RBP by visiting the find a Registered Building Practitioner section. Please note that only individuals are registered and not companies or trading names.
