Changes Under the Design and Building Practitioners Act 2020
The Design and Building Practitioners Act 2020 (the Act) introduces new obligations for building professionals in NSW. One of the key provisions is the requirement for registered building practitioners to hold Professional Indemnity Insurance for the work they carry out.
The Act requires registered building practitioners to hold professional indemnity insurance for the work they carry out. This mandatory insurance requirement commences from 1 July 2025.
What is Professional Indemnity Insurance?
Professional Indemnity Insurance protects you if a client claims your advice, design, certification, or professional conduct caused them financial loss. For Registered Building Practitioners, this might include:
- Design or documentation errors
- Incorrect compliance advice
- Project management oversights
- Certification or inspection mistakes
Even if you're not at fault, defending yourself legally can cost thousands — PI insurance helps cover those costs.
Who Needs It in the NSW Building Sector?
If you’re a:
- Building designer
- Engineer
- Building consultant
- Project manager
- Principal design practitioner
then PI Insurance is mandatory from July 2025.
What Can Go Wrong Without It?
Here are real-world examples:
- Incorrect documentation causes delays and cost blowouts
- A compliance error leads to rectification work and legal threats
- A design flaw triggers a negligence claim — even if you subcontracted the work
PI Insurance provides a financial safety net when you’re facing professional liability.
How Much Cover Do You Need?
The minimum requirement may vary depending on your registration class and project size. Most practitioners opt for a minimum level of $ 1,000,000 ranging up to $ 5,000,000 and higher, higher for midsize firms or more complex risks.
What to Look For in a Policy
Your policy should include:
- Coverage aligned with your registration category
- Contractual liability protection
- Run-off options
How We Can Help
We specialise in insurance for NSW building practitioners. We can help you:
- Understand your obligations under the Act
- Compare quotes across leading insurers
- Bundle with Public Liability or Contract Works insurance
Legal Alignment
Under Clause 77 of the DBP Regulation, you must be “adequately insured” for the type of work you perform.
NSW Fair Trading and most insurers interpret this to mean:
- The policy schedule/business description should clearly match the scope of declared services
- Vague or broad terms like “building services” or “RBP” or “Registered Building Practitioner” alone are not specific enough
Your business description must reflect the specific scope of engineering or building work you do under your registration — not just the label “Registered Building Practitioner.
We recommend you provide a copy of your registration certificate from the NSW Fair Trading department in order to match the category of your registration, with the business description / professional services listed on your insurance policy schedule.
Get a Quote Today
Meet your Professional Indemnity Insurance obligations under the Design and Building Practitioners Act 2020.
Call us today or click our Construction Professions - Professional Indemnity form for a fast quote tailored to your trade and registration class.