Under the Building Work Contractors Act 1995 (SA) and Regulations, builders performing building work that requires development approval, and has a value of $12,000 or greater, are required to take out a building indemnity insurance (BII) policy on behalf of the homeowner for each and every contract they enter into.  BII is also known as Builders Warranty Insurance.

In September 2022, QBE Insurance (Australia) Limited (QBE), who manage BII on behalf of the SA Government, implemented several enhancements to provide benefits to customers, external stakeholders and brokers, with the view to streamlining processing and reducing fraudulent building activity in the market.

The key issue for BII is the existence of ‘fake’ BII Certificates. This occurs when the builder is ineligible to obtain a Certificate as cover is denied, is unlicensed or does not want to pay for a certificate.  In addition to meeting legislative requirements, the certificates are a key requirement in the Council issuing building permits.

The introduction of the Insurance Certificate Register, offers the following key benefits:

> The ability to confirm if a valid Certificate of Insurance has been issued on a building site in the last 10 years.

> The ability to search for Certificates of Insurance using the Policy Number or Property Address.

> Reduce instances of fraudulent activity.

> Improve awareness for homeowners and councils.

Additionally, QBE will now email all BII Certificates of Insurance directly to homeowners rather than mailing. This ensures that policy documentation is received by the homeowner and creates a positive environmental impact by reducing physical mail. Consolidated application forms and alignment with change have also improved data quality, further supporting the streamlining of processes.

This collaborative work with QBE will benefit everyone in South Australia undertaking building works.

For more information visit the QBE website>>

www.qbe.com/au/home-insurance/builders-insurance.

For details about the enhancements >>

https://www.qbe.com/au/business-insurance/builders-warranty

More information about the Insurance Certificate Register>>

https://www.qbe.com/au/builders-warranty/certificate-register

SAFA website also has information>> https://www.safa.sa.gov.au/Insurance/building-indemnity-insurance