An owner-builder cannot arrange South Australian Building Indemnity Insurance for building work they perform themselves.

However, a licensed Building Work Contractor engaged directly by an owner-builder may need to arrange Building Indemnity Insurance for eligible work.

When can the contractor need Building Indemnity Insurance? #

The contractor’s work will generally need to:

• Require development approval
• Be valued at $20,000 or more

The contractor must also have the required Building Indemnity eligibility and arrange the relevant project certificate before commencing eligible work.

What if the contractor is a subcontractor? #

Where a contractor is engaged as a subcontractor by another principal builder, responsibility for the Building Indemnity arrangement will generally sit with the principal contractor rather than the individual subcontractor.

The actual contracting structure should still be checked.

What other insurance should an Owner-Builder consider? #

Building Indemnity Insurance is not a replacement for Contract Works Insurance.

An owner-builder may need to consider Contract Works Insurance for certain physical loss or damage to:

• Construction works
• Materials
• Other insured property

during the project.

Public Liability Insurance can also be relevant to certain claims involving third-party personal injury or property damage.

Contact our team before work commences if you need help understanding which insurance arrangements may apply.