For those seeking to apply for their Builder’s Licence and obtain eligibility to the Builders Warranty Insurance Scheme, we recommend you speak to Sam Cottell from SA Trade Licensing.

Sam is a previous Licensing Manager for Consumer Affairs and has over 12 years of experience supporting builders with licensing and technical interview preparation.

We are still able to assist with processing applications directly, however, there will be an additional administration cost applicable.

To apply, complete the Building Indemnity Eligibility Application.

Allow at least 21 days for a response after submission of the application to QBE. Eligibility is granted solely at QBE’s discretion.

Applications made for eligibility to the Builders Warranty Insurance Scheme via SA Trade Licensing will have a non-refundable application fee of $500 + GST.

Applications made directly to Webber Insurance without the assistance of SA Trade Licensing will incur a $1,500 + GST application fee.

The above fees are non-refundable and eligibility is granted solely at the discretion of QBE.

Once all information has been correctly submitted, QBE will generally take 2-3 weeks to review and approve an eligibility certificate. Approval is solely at the discretion of QBE.

QBE will require the following documents to be included with an application, and may request additional documents following their review:

1. Applicant’s Experience/Competency:
   • Resume and qualifications for sole traders, directors and nominated supervisors for new applications and changes in directorship/nominated supervisors.
   • Business Plan (if applicable).
   • Technical references for job profiles above standard limits or for multi-unit developments.
2. Financial Statements:
   • All financials should be prepared under accrual-based accounting.
   • AASB15-compliant financials are required for entities seeking an annual limit over $5M.
   • General purpose financials are required for entities with revenue exceeding $10M or applicants seeking an annual limit over $10M.
   • Audited financials are required for entities with revenue exceeding $50M, where applicable.
3. Business Structure Requirements (select relevant type):
   • Sole Trader or Partnership:
     • Profit and loss statement including trading account for the last 2 financial years (a copy of the full tax returns as submitted to the Australian Tax Office is acceptable).
     • Ensure that Tax File Numbers are removed.
   • Company or Trust Structure:
     • Full and final financial statements for the last 2 financial years, including:
       • Profit and loss statement.
       • Balance sheet.
       • Notes to the accounts.
       • Compilation report.
     • New companies are required to provide a Start Up Balance Sheet.
     • Financial statements must be signed by each director of the company as being true and correct.
     • If financials are older than 9 months, provide interim statements no more than 3 months old (internally prepared accounts are acceptable if signed by directors or an external accountant as true and correct).
     • Aged creditors and aged debtors listings as of the most recent financial statements provided, including commentary and payment plans for accounts over 60 days.
     • Copy of the Trust Deed for applicants operating as a trustee.
   • Group Structure:
     • Copy of group structure, related entity financial statements, and an explanation and repayment plan for related entity loans.
4. Personal Asset Position:
   • Proof of ownership for all assets of sole trader / directors, including:
     • Current rates notice/land title (property)
     • Current bank statement showing account holder name, balance and date.
     • Motor vehicle registration.
     • Current share portfolio statement.

We are required to submit each document to QBE. If a document is missing or unavailable, QBE will require commentary explaining why it was not submitted.

Any request to increase/change limits will require completion of the Eligibility Review Application form. The information requested is much the same as the initial application with updated financial information and a Work-in-Progress status report. Additionally, a work pipeline can be provided to support any request for increased limits.

A review will generally take up to 21 days from submission to be completed.

Generally, QBE will require a builder to be operating for at least 12 months before a review can be conducted, along with the availability of 12 months of audited financials.

An eligibility review will incur a cost of between $500 – $1,000 + GST** (see schedule of rates). This invoice needs to be paid prior to us submitting your application to QBE and is non-refundable. Any changes to eligibility are approved solely at QBE’s discretion.

If QBE does not require your eligibility to be reviewed, approximately 45 days before the annual expiry date of your eligibility certificate, you will receive your renewal invoice. Once this invoice has been paid, you will receive your updated eligibility certificate.

If QBE requires your eligibility to be reviewed, we will send through the Eligibility Review Application along with our invoice for the renewal/review. Once the invoice has been paid, and the application has been received, this will be sent to QBE for their review. This process will likely take 21 days to be completed.

An eligibility certificate renewal without a required review will cost $400 + GST. If a builder has Contract Works insurance with Webber Insurance, we will waive this annual cost.

If a full review is requested, the fees will be as per the ‘Eligibility Review Cost’ information above.

Once your payment for the renewal invoice has been receipted, you should receive your updated eligibility certificate within 7 days..

We understand that sometimes, Eligibility Certificates are received, and no work is undertaken. It may seem excessive to pay an invoice when no work has been added. In these instances, when payment is not received, Webber Insurance will resign as your broker. This means that you will need to appoint another broker to handle this insurance for you.

Our resignation will not affect your current eligibility status.

If you have not provided your Building Licence No, the facility will be ‘inactive’ in QBE’s system, and they may choose to request a new application from the builder if they decide to use the facility in the future.

To add a project, the Job Specific or Multi-Unit application form needs to be completed. Also, a copy of the signed contract needs to be submitted.

It is important to note that the information in the application must match the contract form EXACTLY and be in line with your eligibility legal details. We are unable to submit to QBE if these details do not exactly match.

• Download QBE Job Specific Application
• Download Multi-Unit Application

The premium rates for each project can be reviewed using the link below. Please note that your category class will be listed on your eligibility certificate.

A broker fee of between $250 – $500 + GST will be added to each certificate issued.

View QBE Current Rates.

Building Indemnity insurance is required in South Australia for any domestic work (structural) that must be approved by council and costs $12,000 or more. For more information, please refer to Building Work Contractors Act 1995.

QBE defines Domestic Building Work as:

a. the whole or part of the work of constructing, erecting, underpinning, altering, repairing, improving, adding to or demolishing a house; or

b. the whole or part of the work of excavating or filling a site for work referred to above; or

c. the construction, alteration, repair or improvement of a swimming pool or spa within the external walls of a house or within the curtilage of a house; or

d. any other work carried out within the curtilage of a house or the boundary of the curtilage of a house.

A variation form signed by all parties to the Contract needs to be submitted to QBE for changes to be made. A broker fee of between $200 – $400 + GST will be charged for each variation made.

Download QBE Variation Form.

To cancel a project certificate, a Certificate Cancellation Form signed by all parties to the Contract must be submitted. Please note that this form generally needs to be submitted prior to the commencement of the project.

If the project has already commenced, please use the Certificate Variation form.

Download QBE Certificate Cancellation Form.

In South Australia, if you need to make a claim under your Building Indemnity Insurance policy with QBE, follow these steps:

1. Gather Necessary Documentation:
   • Certificate of Insurance: Ensure you have a copy of your Building Indemnity Insurance certificate.
   • Building Contract: Obtain the contract detailing the work agreed upon with the builder.
   • Proof of Payments: Collect receipts, invoices, or bank statements showing payments made to the builder.
   • Termination Evidence: If applicable, provide documentation indicating the termination of the building contract.
2. Complete the Claim Form:
   • Download and fill out the QBE Builders Warranty Insurance claim form.
3. Submit the Claim:
   • Email: Send the completed claim form and supporting documents to [email protected].
   • Post: Mail the documents to QBE Insurance, GPO Box 4323, Melbourne VIC 3000.
4. Contact QBE:
   For assistance or to discuss your claim, call QBE at 1300 790 723.

Ensure all information provided is accurate and complete to facilitate a smooth claims process.

Building Indemnity Insurance can only be taken out only by a Building Work Contractor that holds a Builders License.

This insurance cover cannot be taken out if you are undertaking the works yourself, even if you are building a house, performing renovations or building an extension.

Building contractors must ensure this insurance is in place before starting work. Work cannot begin until:

• Building Indemnity Insurance has been arranged
• The building owner has received the Certificate of Insurance
• The council has received the Certificate of Insurance

Building Indemnity Insurance protects the homeowner (and subsequent homeowners) (NOTE: not the Builder) from:

• Non-completion of the Building Contract, including loss of deposit if the builder becomes insolvent, dies, or disappears.
• Incomplete or defective work if the builder becomes insolvent, dies, or disappears.
• Failure of the builder to correct faults, such as poor workmanship and unsuitable materials but only if you cannot recover compensation from the builder or have the builder rectify the loss or damage because of the builder’s insolvency, death or disappearance.

It is the builder’s responsibility to ensure this policy is taken out for each job they undertake.

The builder must provide a Certificate of Insurance to their client for each job they undertake. In addition, a copy of the Certificate of Insurance will be provided to the builder/contractor and the local authority/ council.

A copy of the policy wording will need to be provided to each client.

The builder’s client is the insured party covered under this Policy.

QBE do not cover anyone except the insured party. The QBE definition of the insured party is:

The person on whose behalf the work is done or is to be done, and any successor in title to that person.

This does not include:

a. the builder;
b. a person who does domestic building work other than under a contract;
c. the holder of a builders licence who and that carried out the work; or
d. any related bodies corporate of those above, within the meaning of section 50 of the Corporations Act 2001 (Cth).

QBE will pay for the following sustained by the insured party:

1. loss or damage resulting from non-completion of the work because of the builder’s insolvency, death, or disappearance; or
2. loss or damage arising from a breach of a statutory warranty implied by the Act but only if you cannot recover compensation from the builder or have the builder rectify the loss or damage because of the builder’s insolvency, death, or disappearance.

QBE may do two things, at their option, when they pay a claim under this policy.

They will either:

1. make good the loss or damage; or
2. pay the amount of that loss or damage.

However, the following limitations apply to what QBE will pay:

• QBE will not pay more than $150,000 in total in the aggregate for all claims under this Policy for each house.
• The insured party will need to pay an excess of $400 for each claim in relation to each house in each building insured under their policy.

QBE has a lengthy list of things that are not covered under this policy.

Please refer to page 8 of the policy, under the title ‘What we don’t pay’.

A Building Indemnity insurance policy covers claims in respect of work made within the period of five years from the completion of work.

QBE requires that an insured party notify them of a claim within 90 days of first becoming aware, or when you ought to have reasonably become aware, of any fact or circumstance that may give rise to a claim.

Yes, Building Indemnity Insurance (BII) is mandatory in South Australia for certain types of building work. To obtain a Building Work Contractor’s Licence, Consumer and Business Services (CBS) requires builders to have a Letter of Eligibility for BII.

At Webber Insurance, whilst we can assist you directly with the application process, we recommend contacting Sam Cottell from SA Trade Licensing to assist with the process.

Webber Insurance works with SA Trade Licensing to submit the necessary documents to QBE Insurance, and coordinate with the insurer to streamline the process of issuing your Letter of Eligibility.

Whilst we recommend SA Trade Licensing, we can also assist directly, however, the cost to do so will be $1,500 + GST.

Owner-builders without their own building licence generally cannot directly purchase Building Indemnity Insurance (BII). In such cases, if the value of the work exceeds $12,000, it’s the responsibility of the licensed contractor performing the work to secure BII coverage. This ensures the owner-builder is protected from potential defects or non-completion by the contractor.

However, if you are an owner-builder with your own building licence and are building on land that you own, you may be eligible to obtain BII coverage directly. To do so, you will need to complete the full eligibility application process, similar to licensed builders, to secure the cover.

In contrast, if you have a building licence but are constructing on land that you do not own, or if you do not hold a building licence at all, you will need to rely on subcontractors to arrange the necessary BII coverage for any licensed work they perform.

Subcontractors working under a registered builder do not need to obtain their own BII, as it is the responsibility of the primary builder to provide this coverage.

Yes, there is a difference:

• Building Indemnity Insurance: This insurance is designed to protect homeowners against financial loss if the builder is unable to complete the work, becomes insolvent, or fails to rectify defects. It is mandatory for domestic building projects above a certain value.
• Builders Warranty Insurance: This term is often used interchangeably with Building Indemnity Insurance in some states but can refer more broadly to coverage that includes structural defects and other issues post-completion. To find out more, please visit QBE’s website.

As an approved QBE Insurance broker, Webber Insurance is required to play an active role in assisting builders with their building indemnity insurance requirements. Traditionally, every policy that is placed with an insurer will pay a broker a portion of commission. However, in this case QBE does not pay any commission to brokers for this product.

To assist clients in having their requests approved with QBE, Webber Insurance must review all documents to ensure that they have the required information for QBE. This includes checking contracts to ensure that the entered information matches the certificates to be entered. This is a timely job.

QBE also audits all insurance brokers that provide building indemnity insurance. Even the smallest of errors could result in Webber Insurance no longer having access to QBE’s facility. This extra time taken to ensure information is correct adds to our administration time, therefore requiring builders to pay us for our time. Without these payments, it would not be worth our time to assist builders with their requirements.

AssetInsure is an alternative insurer providing Building Indemnity insurance in South Australia. As a builder you can choose to insure with AssetInsure either directly or via us as your broker.

QBE will only deal with authorised brokers to provide Building Indemnity insurance in South Australia. Webber Insurance is a QBE authorised broker.

It is important to note that both insurers have different processes with how they assess eligibility and the ongoing maintenance of a facility.

Feel free to contact us to discuss the differences in further detail.

Yes, like all insurance policies, there is a Building Indemnity insurance policy wording available here.

Yes, you will need to complete a Letter of Appointment to allow Webber Insurance to act on your behalf.

If you have had cover in the past and your eligibility has lapsed, you will still need to complete a Letter of Appointment.

Yes, Webber Insurance can assist builders located in Victoria via our relationship with AssetInsure.

You can check if a certificate has been issued on a building site in the last 10 years. You are also able to check if the certificate issued matches the records of the insurance company.

A Building Indemnity policy period is for five years from the date of ‘practical completion’. Practical completion is defined as when the building, extensions and/or renovations are completed and ready for occupation.

Builders who fail to obtain the required Building Indemnity Insurance before commencing work or accepting payment can face prosecution, fines, and risk losing their builder’s registration. Compliance with this requirement is essential to maintain legal and professional standing in the industry.

Contract Works insurance protects builders, contractors, and property owners against unexpected damage to a construction project. It covers losses like fire, theft, vandalism, or storm damage while the work is in progress.

You need Contract Works Insurance because:

• It protects your project: It covers the cost of repairing or replacing parts of the project if they get damaged before completion.
• It meets contract requirements: Many building contracts require the builder to have Contract Works Insurance. Not having it could put you in breach of the contract.
• It offers financial security: If something goes wrong, you won’t have to cover repair costs out of pocket, which can help protect your business’s financial health.

We offer two options to suit different needs:

1. One-Off Contract Works Insurance:
   • This policy covers a single project, from the start of the job until it’s finished and handed over.
   • Ideal for builders who handle individual projects or only work occasionally.
2. Annual Contract Works Insurance:
   • This covers all your projects for the entire year under one policy.
   • Perfect for builders who take on multiple projects throughout the year, providing continuous and simplified coverage.

The cost of Contract Works Insurance depends on:

• Project Value: Higher-value projects usually have higher premiums.
• Project Duration: Longer projects may cost more to insure because they are at risk for a longer period.
• Type of Coverage: Adding extra coverage, like public liability, may increase the overall cost.

For a tailored quote, contact Webber Insurance Services, and we’ll help you find the best option for your project.

If you don’t have Contract Works Insurance when it’s required, you could face several serious issues:

• Breach of Contract: Many standard building contracts include a clause that requires the builder to take out Contract Works Insurance. Failing to do so could put you in breach of the contract, leading to legal disputes or penalties.
• Financial Risk: Without this insurance, you would be responsible for any damage or loss that happens during the construction. This could mean paying significant repair costs from your own funds, which could put your business at risk.
• Project Delays: If damage occurs and you don’t have insurance, the time needed to cover the costs and make repairs can delay your project, affecting your timelines and client relationships.

• Contract Works Insurance: Protects the construction project during the building phase against events like fire, theft, or weather damage.
• Building Indemnity Insurance: Protects homeowners if the builder cannot complete the project or fix defects due to insolvency, death, or disappearance.

Applying is simple:

1. Contact Webber Insurance Services: Reach out to our team, and we’ll guide you through the process.
2. Provide Your Project Details: Share the value, duration, and any specific risks of your project with us.
3. Receive a Quote: We’ll review your information and provide a quote tailored to your needs.
4. Purchase Your Policy: Once you’re satisfied with the quote, we’ll quickly set up your coverage so you can get started with peace of mind.

For more information or to get a personalised quote, visit our Contract Works Insurance page.