NSW Builders: Act Now to Meet 2026 Professional Indemnity Insurance Requirements

Navigating the New Compliance Landscape Under the Design and Building Practitioners Act

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Registered building practitioners in New South Wales are required to hold professional indemnity (PI) insurance by July 1, 2026, following an extension of the compliance deadline under the Design and Building Practitioners Act 2021.

This legislation mandates that builders secure PI cover sufficient to meet potential liabilities, though it does not specify a minimum coverage amount.

Key aspects include:

Statutory Duty of Care: The act introduces a duty of care for practitioners, applicable retrospectively, allowing claims up to ten years after project completion if defects cause financial loss.
Extended Liability Period: This provision heightens the need for tailored PI protection, as builders could face claims long after project completion.

Industry experts advise builders to review existing insurance arrangements ahead of the compliance date to ensure adequate coverage and protect their business's future, profitability, and reputation.

Published:Sunday, 28th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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