Professional Indemnity Insurance
If You Advise or Approve, You’re Exposed
NSW now requires registered building practitioners to hold professional indemnity insurance cover. We make sure you’re ready with expert guidance, tailored protection, and fast turnaround.
Do Builders Need Professional Indemnity Insurance?
From 1 July 2025, all registered building practitioners in NSW must hold professional indemnity insurance under the Design and Building Practitioners Act 2020.
If you carry out professional duties – such as issuing reports, conducting inspections, overseeing designs or providing expert advice – you’re now required to hold suitable cover. This applies across the board, from consultants and certifiers to designers and assessors.
Here’s what you need to know:
- The requirement is mandatory for licensing and registration
- It applies to both individuals and businesses involved in professional services or advice
- The insurance must cover breaches of duty, acts, errors or omissions, and related legal costs
Why TIC? Because We Know Building and Construction
You don’t need to work out compliance on your own. If you’re registering for the first time, updating your policy, or unsure what qualifies as compliant cover under the new NSW rules, we’ll guide you through it.
We keep it simple
We’ll tell you exactly what you need, without the jargon. Just clear advice, reliable policies, and support when it counts.
We know the legislation
We’ve been working with builders, consultants, and asbestos professionals for years. We understand how these changes affect your work and what your insurance needs to cover.
We help when it matters
If a claim comes in, we help you manage it - from claim investigation costs to dealing with legal action.
We explain everything up front
That means no hidden exclusions, no guesswork, and no fine print surprises.
We move fast
Whether it’s a new quote or a quick check on your policy, we respond quickly. You won’t be left waiting.
What Does Insurance for Professional Indemnity Cover?
The NSW Design and Building Practitioners Act requires registered professionals to hold professional indemnity insurance that responds to the risks of their advice or services. It’s designed to cover the cost of claims tied to mistakes in your work, even when those mistakes aren’t obvious at the time.
Here’s what a compliant policy typically covers:
Covers you if a client claims your advice or work didn’t meet professional standards, resulting in a financial loss.
Includes protection against accidental mistakes made during your work.
If you're taken to court, the policy helps cover your legal bills - even if the claim is baseless.
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Insurers often investigate claims before deciding what to pay. That process costs money. This cover includes that.
If you’re found liable, the policy can help pay the damages or settlement amount.
Unlike public liability insurance, this cover applies when professional advice or services directly cause personal injury or property damage.
You’re responsible for anyone working under your business name. This cover includes mistakes made by your team or subcontractors.
For your policy to meet the upcoming NSW requirements, it needs to respond to these risks – in theory and in the fine print. That’s where TIC can help.
Do You Need Professional Indemnity Insurance?
If you’re a registered building practitioner in NSW and your work involves any level of professional advice or service, the answer is yes.
This includes anyone involved in:
- Compliance and certification
- Site or building inspections
- Reporting, testing or auditing
- Design or consulting work
- Providing advice that others rely on
TIC helps you understand exactly what your obligations are under the new law, and makes sure your policy meets the standard. We assess your business activities, check for gaps, and find the right levels of cover so you’re protected.
We Simplify Compliance and Insurance
You don’t need to be a large firm to face serious risk. If you’re a sole trader or run a small team, your advice still carries weight – and responsibility.
Whether you’re issuing reports, consulting on compliance, or handling design documentation, we make sure your professional indemnity insurance cover meets the NSW requirements.
Professional Indemnity Insurance Australia: FAQ
Do registered building practitioners in NSW need professional indemnity insurance?
Yes. All registered building practitioners in NSW must hold professional indemnity insurance that meets the standards set by the Design and Building Practitioners Act 2020. This applies to anyone carrying out design work, compliance declarations, or issuing professional advice under registration.
When does the NSW professional indemnity insurance requirement take effect?
The requirement begins on 1 July 2025. You must have a compliant policy in place by that date to maintain registration.
Why is professional indemnity insurance important for builders and construction professionals?
To define professional indemnity insurance helps cover the cost of legal claims, including legal fees, claim investigation costs, and compensation for financial loss or property damage caused by your professional services.
What’s the difference between public liability and professional indemnity insurance for builders?
Public liability insurance covers physical incidents like injury or damage caused by your on-site work. Professional indemnity insurance applies when your professional advice or services cause financial loss, injury, or damage. Both types of cover are often needed for compliance and project access.
Who else in the construction industry may need professional indemnity insurance?
This insurance isn’t just for builders. It’s required for:
- Designers and architects
- Consultants and certifiers
- Engineers and building inspectors
- Asbestos testers and reporting specialists
Anyone providing professional services or advice as part of their role may need cover under the new law.
What does professional indemnity insurance typically cover?
A well-structured policy will cover:
- Breach of professional duty
- Acts, errors or omissions in your work
- Legal defence costs if a claim is made
- Claim investigation costs
- Damages or settlement payouts
- Advice that results in injury or property damage
It also extends to work done by your employees or subcontractors under your supervision.
How can I find a compliant policy for NSW building regulations?
We make that easy. TIC reviews your business activities, assesses your exposure, and recommends a policy that meets NSW compliance. You’ll get expert advice, clear terms, and professional indemnity insurance cover that supports your registration.