In South Australia, Building Indemnity Insurance is generally arranged by a licensed Building Work Contractor for eligible domestic building work.

When is it required? #

The requirement generally applies where domestic building work:

• Requires development approval
• Is valued at $20,000 or more

The insurance must be arranged before the building work commences.

The required Certificate of Insurance must also be provided to the homeowner and relevant authority.

Does this only apply to general builders? #

No.

The requirement can apply to other licensed Building Work Contractors where they contract directly to perform eligible domestic building work.

The relevant factors include:

• Contractor licence
• Type of work
• Contract value
• Development approval requirements
• Contracting arrangement

What about owner-builders? #

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

Where an owner-builder directly engages a licensed Building Work Contractor for eligible work, that contractor may be responsible for arranging the required insurance.

Contact our team before signing a contract or commencing work if you are unsure whether Building Indemnity Insurance is required.