New Mandatory Builders’ PI: Key Information for Builders 

From 1 July 2026, registered practitioner will be required to hold Professional Indemnity insurance under the Design and Building Practitioners (DBP) Act 2020. To learn more about this new insurance regulation, we reached out to our partner Lawpath to break down some of these changes. 

Originally set to kick in back in 2024, the Professional Indemnity requirement has been pushed back twice to allow industries time to prepare for the upcoming requirements under the DBP Act. 

During this temporary exemption, builders aren’t legally required to hold Professional Indemnity cover under the DBP Act.  Statutory warranties under the Home Building Act 1989 still apply, and the Home Building Compensation (HBC) scheme continues to provide a safety net in case of defective or incomplete work. 

But just because the deadline has been moved back doesn’t mean you should take it easy. While the new mandate is still a year away, builders may want to start considering their options early to avoid a last minute rush, explore the market while there is time and compare policies to suit their business needs.

Why builders may need Professional Indemnity insurance 

Professional Indemnity covers the risk that comes with providing professional advice or services. For builders, this can include things like design flaws, documentation errors, or incorrect advice. 

Even experienced builders can get caught up in legal claims and disputes, and it only takes one complaint to put your business at risk. Professional Indemnity insurance can help with the cost of defending that claim, as well as potential compensation or settlements that follow. 

What should builders do now 

While the Builders’ PI mandate might seem far off, your business could be exposed to risks right now.

If you’re already insured, take a close look at your current policy and review your coverage. Does it meet the requirements under the DBP Act? Are there any gaps in what’s covered? 

If you don’t have cover yet, it’s a good time to start exploring what’s out there. The market is catching up, and more providers are offering Professional Indemnity products tailored for builders. Comparing quotes early gives you time to find a policy that suits your unique business needs and assess the cost. 

Get compliant in no time with Lawpath and BizCover 

Compliance is smoother when legal and insurance support work together. Lawpath helps you understand and stay on top of the DBP Act requirements, while BizCover makes finding the right Professional Indemnity policy a breeze. 

July 2026 is an important date for all builders in New South Wales. It might be a good idea to think about tidying up your insurance and avoid any last-minute scramble.  

BizCover’s online platform lets builders compare multiple quotes from top Australian insurers in minutes. And if you find yourself needing legal support, you can also reach out to our partner Lawpath should things get a bit more complicated. Choose the cover that meets your needs, budget and legal obligations, and lock in your cover well before the deadline hits. 

Information is current as at August 2025. This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the Product Disclosure Statement or policy wording. Target Market Determination can also be found on our website as well.

© 2025 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769