Building Indemnity Insurance is a statutory required insurance product which is required in most states for building work contractors carrying out domestic building contracts.

This product is also known as Builders Warranty Insurance, Home Warranty Insurance, Domestic Building Insurance or DBI and has varying Insurance requirements state to state.

In South Australia, Webber Insurance is an approved distributor of both QBE and AssetInsure for Builders Indemnity Insurance. Any domestic building work over $12,000 that requires council approval will need Building Indemnity Insurance.

Further details from the SA Government can be found here.

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 Indemnity Insurance protects the home owner (and subsequent home owners) from:

• Non-completion of the Building Contract, including loss of deposit
• Incomplete or defective building work if the builders becomes insolvent, dies or disappears on the job; and
• Failure of the builder to correct faults which are the builders responsibility by law, such as poor workmanship and the use of inappropriate or unsuitable materials.

Claims can usually only be made on this policy up to 5 years from the practical completion of the work.

The insurance policy may necessitate that the insurer compensates either the total liability limit (capped at $150,000) or the cost of the contractual work that needs finishing (if the amount is lower than the liability limit).

As a building contractor, you are responsible for making sure that this insurance is in place. Building work cannot start until all of the following has been completed:

• Building Indemnity Insurance has been taken out by the building contractor
• The building owner has received a copy of the certificate of insurance
• The council has received a copy of the certificate of insurance

To apply for Building Indemnity Insurance, you need to complete the Builders Warranty Eligibility Application. The cost of the application is $450 + GST, which is payable upon submission of the Eligibility Application Form. This is a non-refundable payment to cover the administration cost of submitting your application to QBE. 

Webber Insurance will provide a rebate of $200 + GST to any builder that also insures their Contract Works insurance with Webber Insurance within 6 months of eligibility being granted. For further details, please contact us.

Note: Currently AssetInsure is only able to assist Builders who can demonstrate at least 3 years of experience as a Licensed Builder.

Further to the application, QBE requires:

• Statement of Personal Assets & Liabilities
• Copy of Builders License (if available)
• Rates notices for owned property
• Most recent Tax Returns or Accountant prepared Financials

Once this has been sent off to QBE, please allow a minimum of 14 days for a response. Please note that by submitting payment to Webber Insurance Services to apply for eligibility, this does not guarantee acceptance by QBE. Eligibility is granted at the sole discretion of QBE.

For assistance with your application, please contact Sam Cottell from SA Trade Licensing.

Webber Insurance is able to assist either with you as the client directly or via your existing broker through a wholesaling arrangement.

To allow us to act on your behalf, you will need to sign and return a copy of the Letter of Appointment to [email protected]

If you are a broker who needs assistance with wholesaling this product, please email us to set up an agency agreement.

To apply for Building Indemnity Insurance, download the eligibility application and letter of appointment below. Once completed, please return to [email protected].

Please note: If you have already submitted a Building Indemnity insurance application and/or currently hold eligibility, we cannot lodge a new application on your behalf. Please contact us for further information.

To cancel or make any variations to your Builders Warranty certificate, please use the forms below.

For more information regarding Building Indemnity Insurance, please contact us on 1300 932 237 or email [email protected].