Broker-arranged
Builder insurance
A licensed builder carries three sets of risk at once: the build itself, the people and property around it, and the home warranty cover every state requires on residential work. Here are the covers builders hold, the thresholds and licence rules in each state, and how a licensed broker arranges it all in one request.
- Contract works, public liability and home warranty
- NSW, Queensland, Victoria, SA and WA rules
- One short form, then a licensed broker takes it from there
What insurance does a builder need?
Contract works insurance covers the building and materials while the job is under way, against fire, storm, theft, vandalism and accidental damage. Public liability covers injury to people and damage to property outside the works, including neighbours, with head contractors and councils usually asking for $20 million. Home warranty cover is compulsory on residential work above your state’s threshold and is taken out before you start or take a deposit. Then workers compensation once you employ, tools and plant cover for your gear, and commercial motor for the utes.
Builders are arranged through a broker because insurers assess the projects you take on, your turnover, your licence class and your subcontractor controls before they quote.
Home warranty cover by state
The compulsory cover, with each regulator’s published threshold. Our home warranty guide explains each scheme in detail.
| State | Scheme | Required when |
|---|---|---|
| NSW | Home Building Compensation Fund (icare HBCF) | Residential building work over $20,000, before you start work or take a deposit |
| Queensland | Queensland Home Warranty Scheme (QBCC) | Residential construction work over $3,300 |
| Victoria | Domestic building insurance (Building and Plumbing Commission) | Contracts over $20,000 signed from 1 July 2026 |
| South Australia | Building indemnity insurance | Domestic building work costing $20,000 or more that needs council approval (raised from $12,000 on 10 November 2025) |
| Western Australia | Home indemnity insurance | Residential building work over $20,000 |
Eligibility is assessed on your financial position, so builders who can’t get warranty eligibility can’t contract for residential work above the threshold.
Builder covers at a glance
| Cover | What it does | How you get it |
|---|---|---|
| Contract works | The works, materials and temporary structures during the build, against fire, storm, theft and damage. | Arranged by a broker |
| Public liability | Injury to people and damage to property outside the works, including neighbouring homes. Usually $10 million or $20 million. | Arranged by a broker for builders |
| Home warranty insurance | Compulsory on residential work above the threshold; protects the homeowner if you die, disappear or become insolvent. | Through your state scheme, with eligibility assessed |
| Workers compensation | Compulsory once you employ staff, through your state scheme. | Arranged by a broker |
| Tools & equipment | Tools and equipment in the ute and on site. | Compare online |
| Plant and equipment | Excavators, bobcats and hired-in plant. | Arranged by a broker |
| Commercial vehicle | Utes and trucks on the road. | Compare online for one vehicle |
| Professional indemnity | If you design and construct, for claims about the design. | Arranged by a broker |
Licence and insurance rules builders deal with
| Rule | What it means |
|---|---|
| NSW categories of work | NSW licenses building work by category, and a contractor licence is needed for residential building work above the licensing threshold |
| NSW insurance for building work | HBCF cover on residential work over $20,000, and NSW says registered building practitioners on regulated buildings must also be indemnified from 1 July 2027 |
| Queensland licensing | QBCC licences are needed for building work above the licensing threshold, and the home warranty premium is paid to QBCC on residential work over $3,300 |
| Working at heights | Safe Work Australia says construction work with a risk of falling more than 2 metres is high risk construction work that needs a safe work method statement; scaffolding over 4 metres needs a licensed scaffolder |
| Subcontractors | Each subcontractor holds their own public liability and workers compensation, and your contracts should require proof |
Insurers ask for your licence number, your eligibility letter and your subcontractor controls as part of the quote.
What’s usually covered, and what isn’t
Usually covered
- The build and materials during construction, under contract works.
- Injury to visitors and neighbours and damage to their property, under public liability.
- Theft of materials from the site, in many contract works policies.
- Your own tools and plant, under tools and plant cover.
Usually not covered
- Defects in your own work. That’s what home warranty and the statutory warranties deal with.
- Your subcontractors’ work and injuries. They hold their own cover.
- The finished home once it’s handed over. The owner insures it.
- Fines for unlicensed or non-compliant work.
How to get builder cover through us
Builder insurance questions
Is home warranty insurance the same as builder’s insurance?
No. Home warranty cover protects the homeowner if you die, disappear or become insolvent, and it’s compulsory on residential work above the threshold. Builder’s insurance usually means the covers you choose for your own business: contract works, public liability, tools and vehicles.
How much does builder insurance cost?
It depends on your turnover, the types and values of the projects you take on, your licence class, your claims history, the limits you choose and how you manage subcontractors. The home warranty premium is set by each state scheme per contract. There are no prices on this page; a broker arranges quotes for your business.
Do builders need professional indemnity insurance?
Only if you give design or certification advice, such as a design-and-construct builder. In NSW, registered design practitioners and professional engineers on regulated buildings must hold it, and NSW says registered building practitioners must also be indemnified from 1 July 2027.
What insurance does a builder need in Victoria?
Domestic building insurance on contracts over $20,000 signed from 1 July 2026, through the Building and Plumbing Commission, plus WorkCover once you employ, contract works and public liability. Victoria’s scheme is explained in our home warranty guide.
What insurance does a builder need in Queensland?
The QBCC home warranty premium on residential construction work over $3,300, a WorkCover Queensland policy once you employ, and contract works and public liability for the site. A QBCC licence is needed for building work above the licensing threshold.
Does public liability cover my subcontractors?
No. Each subcontractor holds their own public liability and workers compensation, and your public liability covers claims against you as the builder. Ask for certificates of currency before they start.
Why is builder insurance arranged by a broker?
Insurers assess the projects, the licence class, the turnover and the subcontractor controls before they quote, and the home warranty eligibility sits alongside. A licensed broker arranges the lot rather than an online form.
Keep reading
More industries arranged by a broker
Sources
- Service NSW: Home Building Compensation Fund (HBCF)
- NSW Government: Insurance cover for building work
- NSW Government: Categories of building work
- QBCC: When you need a licence
- QBCC: Who pays home warranty and when
- Victorian Government: Home Warranty insurance
- SA Government: Building indemnity insurance
- WA Government: Home indemnity insurance fact sheet
- icare: Do I need workers compensation insurance?
- WorkSafe Queensland: Who needs workers’ compensation insurance?
- Safe Work Australia: Working at heights
- Safe Work Australia: Scaffolding
- business.gov.au: Types of business insurance
Builders