Frequently Asked Questions

Yes, it’s quicker to gain approval when you provide all the necessary documents from the outset.

The NSW government uses a complex model to ensure that your business is eligible for HBCF cover. You need to get a Certificate of Eligibility before you can apply for insurance cover. A Certificate of Eligibility means you’ve been assessed by icare and have been granted an entitlement to apply for a Certificate of Insurance.
You can apply for eligibility through an approved Home Warranty Insurance distributor, of which HIA Insurance Services is one. To find out more about the application process and the documents you need to provide, visit the State Insurance and Regulatory Authority (SIRA) website.

The short answer is that it’s a legal requirement to have it.
If you’re a licensed builder or tradesperson in New South Wales, you must take out HBCF cover for every home building project you undertake valued at $20,000 or more, including GST. If you fail to do so, you can’t enforce the building contract against the owner and you may be liable to substantial fines.

The New South Wales government does not disclose its pricing model, so it’s difficult to determine the exact fees payable by each business to receive cover. However, to understand the distributor related fees that HIA Insurance Services charges, we have created a user-friendly HBCF premium calculator which you can request by calling us on 1800 762 878

Domestic Building Insurance is a legislative requirement for all registered domestic builders in Victoria to maintain a builder’s licence.

Contact an HIA Insurance Services expert so they can guide you through the process of completing an application and providing the necessary supporting documentation.

You can access the BuildVic portal and download a copy at any time.

Owner-builders do not need to take out Home Indemnity Insurance before they build, but they must do so if they sell within seven years from the date the building permit was granted.

A registered builder may seek an exemption from obtaining Home Indemnity Insurance if they are building their own principal place of residence. However, they must obtain cover if they sell the property within seven years of the date the building permit was granted.

As it is a builder’s responsibility to obtain Home Indemnity Insurance, subcontractors who perform building work under a contract with a registered builder don’t need to obtain cover.

If the work is associated work alone (so not forming part of the building contract for a new home) – e.g. a swimming pool, carport, fence, pergola or landscaping – Home Indemnity Insurance is not required even if the work is over $20,000.

Non-structural work such as cabinet making, tiling and painting, which does not require a building permit or is not required to be carried out by a registered builder, does not require Home Indemnity Insurance cover.

A builder who doesn’t take out Home Indemnity Insurance as required can be prosecuted and fined up to $50,000. They may also risk losing their builder’s registration. 

The builder must provide the homeowner with a copy of the ‘Notice for the Home Owner’ before a contract for home building work is signed or a deposit is paid. The Notice summarises the main requirements of the Act, including the requirement to take out Home Indemnity Insurance.

The builder must also obtain a Certificate of Insurance and provide a copy of this Certificate to the homeowner before taking a deposit or commencing the works. A copy of the Certificate is lodged with the permit authority together with the application for a building permit. The permit authority is able to refuse the application if evidence of Home Indemnity Insurance cover is not provided.

Yes, for all residential building work valued over $20,000 to be undertaken in Western Australia, the Act requires that the builder takes out Home Indemnity Insurance in the name of the homeowner before accepting payment or commencing work. The only exception is when carrying out ‘associated work’ only or work in the retirement village and multi-storey development categories.

No, Home Indemnity Insurance cover does not reduce the liability of a builder during the six-year period from the date of practical completion of the building work (or during the build). The policy will come into effect only if a ‘relevant circumstance’ exists (i.e. the builder has died, disappeared, become insolvent or had their builder’s registration cancelled, or not renewed due to insufficiency of financial resources). In all other cases a builder will remain responsible for claims made by a homeowner (or owners of the home thereafter) during the six-year period following practical completion.

An application form can be requested that allows you to request a variation to your annual limit or your ‘per dwelling limits’. We recommend you talk to an HIA Insurance Services expert to find out about making changes to your eligibility.

The policy period is for five years from the date of ‘practical completion’, which is when the building, extensions or renovations are completed and ready for occupation.

Owner-builders cannot take out BII cover. However, any contracts signed by an owner-builder with contractors for works of a value greater than $12,000 will require the contractor / tradesperson to take out a BII certificate to cover their work.

As it is a builder’s responsibility to obtain Building Indemnity Insurance, subcontractors who perform building work under a contract with a registered builder don’t need to obtain cover.

Non-structural work such as cabinet making, tiling and painting, which does not require council approval or is not required to be carried out by a registered builder, does not require Building Indemnity Insurance.

A builder who doesn’t take out Building Indemnity Insurance as required can be prosecuted and may risk losing their builder’s registration.

Yes, for all residential building work carried out by a registered builder, valued over $12,000 and to be undertaken in South Australia, the Act requires that the builder takes out Building Indemnity Insurance in the name of the homeowner before accepting payment or commencing work. 

No, Building Indemnity Insurance does not reduce the liability of a builder during the five-year period from the date of practical completion of the building work (or during the build). The policy will come into effect only if a ‘relevant circumstance’ exists (i.e. the builder has died, disappeared, become insolvent or had their builder’s registration cancelled, or not renewed due to insufficiency of financial resources). In all other cases a builder will remain responsible for claims made by a homeowner (or subsequent owners) during the five-year period of insurance, which starts following practical completion.

As part of the process required to obtain a Building Work Contractors Licence in South Australia, Consumer and Business Services (CBS) requires licence holders to obtain a Letter of Eligibility for Building Indemnity Insurance. HIA Insurance Services can assist in submitting your application for eligibility to QBE Insurance, working on your behalf with the insurer, clarifying any further information required and streamlining the process to have the Letter of Eligibility issued.

The homeowner warranty certificates will take 24–48 hours to be processed provided you have an approved profile with the insurer, and subject to peak periods. Note that backlogs can sometimes cause a delay.

Yes, it’s quicker to gain approval when you provide all the necessary documents from the outset.

All new applications in ACT require a technical reference. If one can’t be supplied, you will need to provide a building resume.

A Single Project policy covers you for one insured work site and does not include product liability cover.  

An Annual Turnover policy covers all your projects for a 12-month period. Product liability is included in Annual Turnover cover and can provide continuity of cover on works completed during the policy period. It also ensures you don't forget to insure a project, leaving your business open to risk. Note that if the cover lapses, your right to make a claim ceases. 

A Single Project policy protects you from the date you commence work at the specific job site that has been insured. 

In the case of an Annual Turnover policy, you are covered for a 12-month policy period – the specific dates will be listed on your policy documents. The policy is intended to cover operations across multiple sites and locations where your construction works are conducted. For example: quoting for a job, or working on multiple construction sites over the policy period. 

Cover for tools and plant can be added to your Construction Works Insurance policy for an additional premium.

For single project cover, Construction Works Insurance cover usually expires at practical completion – or at the expiration of the maximum construction period provided under your policy or at expiry date of policy. 

No, display homes are not automatically covered. Display homes and their contents are covered by the Platinum policy with an insured value up to $500,000 for buildings and $50,000 for contents (subject to an overall policy limit of $1.5 million during  the policy period). Higher limits may be available and extra premiums will apply.  

Yes you can, monthly payments can be arranged through a premium funding agreement with Hunter Premium Funding² to help you spread the costs of your insurance across the year. Please note that the total overall cost is higher if you pay monthly. Contact HIA Insurance Service on 1800 762 878 to find out more information.

Tradies Insurance does cover your employees¹, however it does not act as a work cover policy should one of your employees be injured during the course of their work. For information on work cover, you can visit the Workers’ Compensation page of our website.

No, subcontractors need their own policy as they are not direct employees.

Your tools are covered provided that you have taken out optional cover as part of your Tradies Insurance policy¹. Optional tools cover can provide cover for theft or any attempted theft following forcible entry.

Yes, but there must be proof of forced entry into the vehicle, such as a broken window, damage to door locks, etc.¹

Registered trailers are not covered under the Trades Pack policy and require a separate policy. Contact HIA Insurance Services for a quote.

When purchasing your insurance, you are required to tell your insurer everything they need to know so they can assess your level of risk accurately. You may therefore not be covered for any work you do not disclose to HIA Insurance Services which is not related to your occupation. Please contact HIA Insurance Services if your occupation has changed.

In the case where you need to make a claim, excess amounts for Tradespack Insurance include $500 excess for Public Liability and $250 for General Property. If you need to make a claim, please visit our claims page.

No, Tradies Insurance isn’t sufficient for a builder because it covers one trade only. You will need to consider taking out a Construction Works Insurance, Public & Product Liability policy

If you take out an Annual Turnover Construction Works Policy, then this cover generally includes PL cover for the duration of the year, so there is no need to take out PL separately under this policy. However, if you take out a single project Construction Works Policy, the Public Liability portion of this only becomes effective when you start a project, so it is worth considering Public Liability Insurance under your Business Insurance to ensure you’re not left with any gap in your cover.

Similar to Public Liability, if you’ve already insured your tools under your Construction Works policy, then you do not need to insure them again under your Business package insurance. However, remember, this only applies if you’ve taken out an annual Contract Works policy. If you generally only take out cover for each project, then you may wish to consider insuring your tools under your Business insurance to ensure they’re covered throughout the year.

Tools can be covered Australia-wide under a Business Insurance policy, but will not be covered for theft from your ute if your vehicle is left unlocked and unattended unless you have them stored in a locked metal toolbox fastened to the vehicle. Note that this applies even if you are on-site at a building project.

As a specialist in construction insurance, your HIA Insurance Services broker will be able to work with you, analysing your business’ risk profile and balance sheet in order to help you understand an appropriate level of cover for your business’ circumstances. Speak to a broker by calling us on 1800 762 878.

Professional fees can be identified by taking the overall turnover of your business and determining the portion of your turnover that is derived from professional activities. This will typically vary depending on size of the business, resources and expenses allocated by the business to perform these professional activities. 

Professional Indemnity Insurance is designed for any professionals in the construction industry who provide some sort of professional service or advice to their clients. These could include: 

• Tradies 
• Developers 
• Building inspectors 
• Draftspeople 
• Project managers 
• Architects 
• Surveyors 
• Design Professionals 

Cybercrime is a cyber security incident where cybercriminals target individuals, businesses, educational institutions or governments with a type of cyber threat.³ The Australian Cyber Security Centre has created a guide for some common cyber threats for small businesses, which includes: 

• Malicious Software (Malware) – Unauthorised software designed to cause harm, including viruses, spyware, trojans and worms 

• Phishing – Emails designed to trick recipients out of money and data by pretending to be a person, brand or company you are familiar with 

• Ransomware – Certain malware that locks down your computer and files until a ransom is paid. 

Cyber insurance may assist your business from losses associated with cyber risks such as unauthorised system access, cyber attacks (including denial of service or hacking attacks), computer viruses and privacy breaches. There is a range of different types of cyber insurance cover, which can include: 

1. IT Security and Forensic Costs 

2. Privacy Breach Costs, including notification 

3. Data Recovery 

4. Business Interruption 

5. Privacy Liability (i.e. your liability to third parties as a result of a privacy breach) 

6. Network Security Liability (i.e. your liability to third parties as a result of cyber events) 

7. Media Liability (i.e. your liability for intellectual property infringement or defamation) 

8. Payment Card Industry (PCI) Fines, Penalties and Assessments 

9. Regulatory Fines, including GDPR fines 

10. Cyber Extortion 

11. Cryptojacking and Telephone Hacking 

12. Funds Transfer Fraud, including phishing or social engineering scams against your employees 

13. Loss from theft of the policyholder's electronic identity.

Business Insurance generally includes damage to property (building and contents), business interruption and liability cover. However, insurers are increasingly applying broad exclusions to these policies for any cyber-related loss as they are only willing to provide cover for cyber-related risks on specialised Cyber Liability insurance policies.  

There may be some coverage for cyber-related losses in other insurance policies, but many cyber losses will only be covered under a dedicated cyber policy. Recent changes in insurance market conditions (particularly over the past 12 months) mean many insurers are also starting to apply cyber exclusions to non-cyber policies. 

Cybercriminals use malware and viruses, computer and network hacking, denial-of-service attacks, social engineering and online scams to commit their crimes. For cybercriminals, it can be relatively easy to access computers and networks inadequately protected by virus software or passwords. 

While a company can put various controls in place to protect their business, a significant number of cyber incidents are caused by human error. Mistakes such as clicking on a link or opening a malicious email can be enough to allow cybercriminals unlimited access to your data and infrastructure. A growing risk for small-to-medium-sized businesses is funds transfer fraud — i.e. a fraudulent request for an employee to send funds to a scammer's bank account. Depending on the Cyber Insurance policy taken out, such losses may be covered. 

Cyber incidents covered under cyber insurances are not all outsider attackers since many policies also cover privacy or security breaches from left laptops or mobile devices, programming errors or threats from rogue employees.

It’s important to note that Construction Legal Expenses Insurance policies are on a claims made and notified basis. Subject to the full terms, conditions and limits of the policy, you are covered for claims made against you during the present insurance policy period regardless of when an incident occurred. It means you are required to report or notify your insurer of any claim or known circumstance that may lead to a claim within the present policy period. 

No, in the event of a determination in favour of the homeowner, the amount disputed is not covered under the policy.  

Contractual disputes must first occur at least 90 days after the start of the first period of insurance before any claim can be considered relating to that dispute – and the amount in dispute must exceed $5000. 

Simply speak to HIA Insurance Services who will arrange for an application form to be sent to you. Once you have received the form we can provide you with terms from the market. You can call us on 1800 762 878 to get a quote or request a call back through our contact page.

The cost of cover is dependent on the components you choose to include, as well as the size of your business and its exposure to risk. We use our extensive knowledge of the residential construction sector to help determine the right level of cover for your business. 

Management Liability Insurance covers your business for exposures associated with the mismanagement of your company. Professional indemnity insurance helps protect your business against claims made by clients and third parties for advice or services you've provided – and which they allege has caused them loss or damage.

No, you can choose which sections best suit the needs of your business. If you decide not to choose a particular section, your business will not have cover against that risk. 

Business car insurance covers your vehicle for both personal and business purposes. However, commercial car insurance is solely for vehicles used for work purposes. 

Yes, Commercial Motor Vehicle Insurance can  provide replacement vehicle over. However, for some policies, this is an additional benefit, which will need to be specifically requested and is likely to attract an additional premium amount.

You can buy Commercial Vehicle Insurance for a wide range of vehicles including: sedans, wagons, utes, 4WDs and goods-carrying vehicles up to 2, 5 and 10 tonnes, trailers, mobile and earth-moving equipment. 

Vehicles that generally are not covered under a commercial motor policy include: taxis/ former taxis, driving instructor vehicles, rescue vehicles, vehicles carting asbestos, motorcycles, grey imports (products that you buy from a seller who does not have specific permission from the manufacturer), mining machinery/vehicles working underground, hire vehicles, security company vehicles, couriers/taxi trucks, mobile cranes/hook risks, long haulage vehicles, and vehicles used for carrying passengers for hire or reward – e.g. buses, ride share.   

These types of vehicles will need to be approved by the insurer along with any other vehicle that maybe exempt from cover. 

Yes, Learner drivers, Provisional drivers and drivers under 21 are covered. An additional Excess is usually payable for young or inexperienced drivers.