For your own protection, check that all the people you engage to do any part of your building project have the necessary insurances in place and that the certificates are current.
Note that information about insurance under the Home Building Compensation Fund (formerly known as Home Warranty Insurance) is provided separately on the Home Building Compensation Fund pages.
This insurance should be obtained by the builder or tradesperson. It is for your protection and covers the loss or damage to materials and work.
If the builder or tradesperson does not have this type of insurance, you may risk:
This insurance covers occupations such as certifiers, architects, engineers and building consultants and covers claims arising from professional services provided for such matters as professional advice, design, certification, contract administration and project management.
This covers the builder or tradesperson if anyone is injured as a result of the building work. If the builder or tradesperson does not have this type of insurance, you could be liable because you own the property.
Make sure all employees are covered by their employer for workers compensation. This insurance covers employees who are injured on the building site.
If employers are not insured, you could be liable to pay the costs of any claim. In some circumstances, under the Workers Compensation Act 1987, these people can be regarded as your employees.
Important: A builder or tradesperson who does not operate under a trade or company name cannot usually take out insurance to cover themselves. It is advisable to take out your own minimum premium insurance just in case.
For more information about workers’ compensation insurance or names of companies who provide this type of insurance, contact WorkCover NSW.
If you’re renovating or extending an existing home:
Important: Always check with your home insurer or insurance broker before you sign a contract.