Recent audits by the NSW Government are a worry for the building industry. Nearly half of the building and renovation companies audited were found to be operating without  home warranty insurance. A review of the Home Building Compensation Fund was also announced – set up a decade ago, the fund offers homeowners a safety net if their builder disappears, dies, becomes insolvent, or loses their licence for not paying compensation as officially ordered.

So why are builders skipping this crucial cover? Common reasons include lack of awareness, concerns over cost, confusion due to regulatory changes, and in some cases, intentional non-compliance. With the government cracking down, it’s vital that builders review their legal obligations to avoid penalties and ensure homeowner protection.

Serious Consequences for Builders Without Insurance

Builders who fail to comply with insurance requirements face heavy fines, loss of their licence, and even legal action. Without proper coverage, they become personally liable for damages, risking financial ruin.

Additionally, operating without insurance can destroy a builder’s reputation. Trust is critical in the construction industry, and once lost, it’s hard to regain. Non-compliant builders may be blacklisted by regulatory bodies, making it difficult to secure future work. The consequences extend far beyond initial penalties.

Why Proper Insurance Matters for Builders

Maintaining the right insurance isn’t just a legal requirement—it’s vital for running a successful building business. Adequate coverage protects against unexpected legal action, ensures financial security, and boosts credibility with clients. It shows you’re serious about your work and responsibilities, offering peace of mind for everyone involved.

Key Insurances Builders Need

• iCARE is the sole provider of compulsory home building compensation insurance under the Home Building Compensation Fund, protecting against structural defects.
• Builders should also secure public liability insurance (for third-party injuries or property damage) and workers’ compensation insurance (for employee injuries).

As your insurance broker, we’re here to ensure you have the right coverage for your projects, helping to optimise your protection without cutting corners.

Protect Your Business Today

If you’re a builder or renovation company, now is the time to review your insurance coverage. Ensure your policies meet regulatory requirements to safeguard against financial loss and reputational damage. The risks of non-compliance are simply too high to ignore.

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