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Latent Defect Insurance

Latent Defect Insurance for Australian Construction

Latent Defect Insurance (LDI) is a 10-year, first-resort policy that covers structural and other defined building defects discovered after practical completion. Resilience-engaged from the design phase, LDI removes the burden from owners and strata corporations of pursuing builders or designers in court when a defect emerges years after handover.

Silverback specialises in placing LDI for medium and large residential, commercial and mixed-use developments across Australia. We are one of a handful of brokers actively writing this product and we work directly with the only specialist LDI markets currently active in the country.

What LDI Typically Covers

LDI is not a maintenance policy and not a defects warranty against tradesperson workmanship — it is a structural and integrity cover for serious, defined defects. The standard policy responds to:

  • Structural defects — load-bearing elements, foundations, retaining walls, slabs, roofs, primary structural framing
  • Mechanical, electrical and plumbing failures attributable to design or workmanship — concealed pipework, electrical risers, mechanical ventilation, hydraulic systems
  • Fire safety system defects — sprinklers, hydrants, smoke control, passive fire-rated separations and penetrations
  • Façade and waterproofing failures — curtain walls, balcony membranes, roof waterproofing, parapet flashings, planter waterproofing, wet areas
  • Consequential loss arising from the defect (alternative accommodation, loss of rent, debris removal, professional fees)

Key Parameters

  • Term: 10 years from practical completion (Class 2 residential apartments) or from occupation certificate
  • Building Classes: National Construction Code Classes 2–9 (residential apartments, commercial offices, retail, mixed-use, industrial)
  • Construction value: typically above $2M — most placements sit in the $5M–$200M range
  • Sum insured: 100% of construction value, with 3% annual indexation built in
  • Premium structure: approximately 30% at commencement of construction, 70% at occupation certificate (final premium adjusted to as-built value)
  • Average rate: ~1.55% of construction value, with a typical range of 1.4% to 1.7% depending on building class, structural complexity, and TIS findings
  • Strict liability, first-resort: the property owner or owners corporation claims directly against the insurer without needing to prove fault against the builder or designer

The Technical Inspection Service (TIS)

LDI underwriters require an independent third-party Technical Inspection Service to engage from design phase through to occupation certificate. The TIS engineer reviews:

  • Design phase: structural drawings, façade detailing, waterproofing specifications, fire engineering reports, geotechnical reports
  • Construction phase: staged inspections at foundations, structure, façade, waterproofing, fire safety, MEP rough-in and final
  • Pre-OC: issue resolution, defect close-out, certificate sign-off

The TIS report becomes part of the placement file and the underwriter relies on it for both pricing and final certificate issuance. We coordinate the TIS appointment as part of placement and align the inspection schedule with the construction programme.

NSW DLI vs LDI — How They Differ

The NSW Design and Building Practitioners Act 2020 introduced compulsory Decennial Liability Insurance (DLI) for Class 2 buildings, currently in a staged rollout. DLI shares the 10-year first-resort structure of LDI but is materially different:

  • Compulsory vs voluntary: DLI is compulsory in NSW for Class 2; LDI is voluntary nationally
  • Scope: DLI is narrower — focused on the categories defined by the Act; LDI is broader and negotiable
  • Markets: DLI markets are NSW-specific approved insurers; LDI markets are national and international
  • Premium: DLI rates are typically 1.0%–1.4%; LDI rates 1.4%–1.7% reflecting broader scope

For developments that fall outside DLI’s scope (Class 3-9, non-NSW jurisdictions, projects below the DLI thresholds), LDI is the only product that delivers equivalent owner protection.

Who Buys LDI

Traditionally LDI is placed by the developer of a strata building as a marketing and protection mechanism — passing the long-tail defect risk to an insurer rather than carrying it on the developer’s balance sheet or relying on the builder’s longevity.

Increasingly we are placing LDI for builders directly. Builders use LDI to:

  • Negotiate down developer-held retentions (often 5%–10% of contract value held for 12+ months at completion)
  • Pass the long-tail risk that would otherwise sit on their professional indemnity cover
  • Differentiate their tender response on premium developments where LDI is a quality signal
  • Manage exposure on D&C contracts where they carry design responsibility for 10 years post-completion

For owners corporations taking over from a developer who didn’t place LDI, retroactive cover is rarely available — the policy must be in place before practical completion. Where there’s an existing defect issue without LDI, your remedies sit with the builder, the designer, or under the relevant state strata legislation.

How Silverback Helps

LDI placement is a 12–18 month engagement, not a quote-and-bind transaction. Our standard process:

  1. Pre-design risk review — we sit with you and the design team early to flag the structural, façade and waterproofing decisions that will materially affect insurability and premium
  2. TIS appointment — we shortlist and engage the right TIS provider for the building class and complexity, and we sit between you and the TIS engineer through the inspection programme
  3. Underwriter engagement — we approach the LDI markets at design freeze with the structural design pack and TIS scope, securing indicative terms before construction starts
  4. Premium staging — we manage the 30/70 premium split, the construction-value adjustment at OC, and the certificate of cover at handover
  5. Claims, if needed — we represent the policyholder through the insurer’s claims and TIS dispute processes for the full 10-year term

Petara’s contract administration background means we read structural and façade specifications, not just insurance schedules. That changes the conversation with both the design team and the underwriter.

Latent Defect Insurance FAQs

The most common questions we get from developers, builders and owners corporations on LDI in Australia.

Is LDI the same as Home Warranty Insurance?

No. Home Warranty Insurance (and the equivalent state schemes — NSW HBCF, VIC BPC, QBCC, WA HBCF) responds if the builder dies, disappears, becomes insolvent or fails to honour rectification obligations on residential work. LDI responds to defined building defects regardless of builder status, on a strict-liability first-resort basis, for any building class. They are complementary covers for residential apartment developments, not alternatives.

Can LDI be placed retroactively?

Almost never. LDI markets require design-phase engagement and the TIS programme to start before substantial works commence. Retroactive cover for an already-completed building is not commercially available in the Australian market.

How does the claim work?

The owner or owners corporation lodges a claim directly with the insurer when a defect is discovered. The insurer engages an independent loss adjuster and (if needed) a fresh TIS to confirm the defect is within the policy scope. Once accepted, the insurer pays for rectification — they do not require the owner to first chase the builder. The insurer may then pursue subrogation against the builder or designer, but that is between the insurer and the original parties.

What does TIS actually cost?

TIS fees are separate from the LDI premium and typically run 0.4%–0.6% of construction value, paid through construction. Specialised buildings (high-rise, complex façades, subterranean works) sit at the upper end. The TIS programme is a placement requirement — you can’t place LDI without one.

Does LDI cover workmanship defects?

Partially. The policy responds to workmanship defects that compromise structural integrity, fire safety, waterproofing, or the defined MEP categories. Cosmetic finish defects, paint workmanship, joinery rework and similar are not LDI-covered — they sit with the builder under the contract’s defects liability period (typically 12–24 months).

How does LDI sit alongside Professional Indemnity?

PI responds to design errors and professional advice claims against an architect, engineer or D&C builder. LDI responds to the building’s actual defects regardless of fault. For a D&C builder, both covers belong in the programme — PI for upstream design exposure, LDI to remove the long-tail building risk from the balance sheet.

What’s the cheapest way to think about LDI cost?

For a $30M residential apartment building, LDI premium plus TIS typically lands around 2.0%–2.3% of construction value all-in (so $600K–$700K total over the construction period). That’s the cost of removing 10 years of strict-liability defect risk from your balance sheet and converting it to a balance-sheet-neutral capitalised expense. For most developers and builders we work with, the real comparison is “LDI premium” vs “carrying the retention or facing a defect lawsuit in year 7” — and LDI wins comfortably on both metrics.

Do I need LDI if I’m already paying for Home Warranty in NSW?

Yes for any project where you want strict-liability defect cover beyond what HBCF protects, and especially for Class 2 buildings where DLI is now mandated. HBCF is a builder-conduct-conditional product (it responds when the builder fails); LDI is a building-conduct-conditional product (it responds when the building fails). They are not substitutes.

Related Cover

Most builders we look after carry several of these alongside Latent Defect Insurance:

Home Warranty Insurance NSW (HBCF)

If you’re a licensed residential builder in New South Wales, you need home warranty insurance before you start any residential building work valued over $20,000. In NSW, this cover is provided through the Home Building Compensation Fund (HBCF), administered by icare.

Home warranty insurance protects homeowners — not the builder — if the builder dies, disappears, or becomes insolvent and can’t complete the work or fix defects. It’s a condition of your builder’s licence in NSW, and no homeowner contract should be signed without it.

Silverback Insurance is a specialist construction broker that helps NSW builders navigate the HBCF application process, manage their eligibility limits, and plan their business finances to support higher insured values as they grow.

How the NSW HBCF Scheme Works

Unlike some other insurance products, NSW home warranty insurance isn’t something you shop around for. The HBCF is a single-insurer scheme administered by icare on behalf of the NSW Government. Every eligible builder in NSW applies through the same scheme.

However, the application can be placed through an authorised insurance broker — and this is where having a construction specialist matters.

The basics:

  • Cover is required for residential building work over $20,000 (including GST)
  • The HBCF provides cover to the homeowner for up to 6 years for structural defects and up to 2 years for non-structural defects
  • Cover applies if the builder dies, disappears, or becomes insolvent — it does not respond to general disputes between the builder and the homeowner
  • Each project requires a certificate of insurance before work begins
  • Builders must maintain eligibility by meeting icare’s financial and compliance requirements

What icare Assesses When You Apply

icare doesn’t just rubber-stamp applications. They assess each builder against a set of financial and compliance criteria before granting or maintaining eligibility. The main factors include:

Financial position — icare reviews your balance sheet, profit and loss, working capital, and debt levels. They want to see that your business can sustain the projects you’re taking on without becoming insolvent mid-build.

Liquidity and cash flow — it’s not enough to have assets on paper. icare looks at whether you have enough liquid capital to manage your current project pipeline and meet your obligations as they fall due.

Claims and complaints history — a history of HBCF claims, NSW Fair Trading complaints, or NCAT proceedings will affect your eligibility and your insured limits.

Licence status and compliance — your NSW Fair Trading home building licence must be current and appropriate for the class of work you’re undertaking.

Experience and track record — newer builders or those stepping up to larger projects may face tighter limits until they demonstrate a track record at the higher level.

Understanding Your Eligibility Limit

Your HBCF eligibility limit is the maximum value of uncompleted residential work you can have on the books at any one time. It’s not a per-project limit — it’s an aggregate cap across all your active HBCF-insured projects.

This is one of the most misunderstood aspects of the scheme. A builder with a $1.5M eligibility limit can’t take on three $600,000 projects simultaneously — the total uncompleted value would exceed their limit. Managing your eligibility limit is essentially managing your project pipeline.

Common scenarios where limits become an issue:

  • Taking on a project larger than your current limit allows
  • Multiple projects running concurrently that push you past the aggregate cap
  • Growth in contract values without a corresponding increase in your assessed financial capacity
  • Seasonal bunching of project starts before completions free up capacity

How Silverback Helps NSW Builders with HBCF

Most brokers treat home warranty as a form-filling exercise — lodge the application, collect the certificate, move on. Silverback takes a different approach.

We help you prepare and lodge your application. Silverback helps builders with their HBCF applications through a Distributor. We also deal directly with Credeq — a separate provider and competitor to icare — giving builders another option. If your financials aren’t in shape for the limit you need, we work with you (and your accountant) to identify what needs to change before lodging. This avoids wasted applications, declined requests, and delays that hold up project starts.

We advise on limit increases. Growing builders regularly need higher eligibility limits. We help you build the financial case for an increase, present your application properly, and time it so your growth isn’t constrained by an outdated limit.

We understand the commercial context. Petara Tanuvasa, Silverback’s director, came from construction contract administration. He understands project cash flow, progress claims, retentions, and how the timing of completions affects your HBCF capacity — not just the insurance mechanics, but the construction economics behind them.

We coordinate with your other cover. NSW builders doing residential work typically need HBCF alongside contract works insurance, public liability, and potentially professional indemnity (especially if you’re doing design and construct work). We make sure your insurance program works as a whole, not as disconnected policies from different providers.

Latent Defect Insurance for NSW Builders

If you’re building multi-unit residential developments (Building Classes 2–9) with a construction value above $2M, latent defect insurance (LDI) is increasingly relevant. LDI provides 10-year post-completion cover for structural, waterproofing, mechanical, electrical, and fire safety defects — and it’s being requested by developers, strata managers, and financiers on a growing number of NSW projects.

Silverback places LDI for builders and developers across NSW. We guide you through the eligibility requirements, the Technical Inspection Service (TIS) process, and the commercial structuring of premiums (typically 30% at construction commencement, 70% at occupation certificate).

For builders doing both HBCF-insured residential work and larger multi-unit developments, we coordinate your home warranty and LDI requirements together — making sure nothing falls through the cracks as your project mix grows.

Learn more about Latent Defect Insurance →

Apply for NSW Home Warranty Insurance

Whether you’re applying for the first time, renewing your eligibility, or need a limit increase to take on a bigger project, Silverback can help you navigate the process with confidence.

Submit an Application Book a Consultation

Call: 0410 152 835 | Email: [email protected]

Frequently Asked Questions

Do I need home warranty insurance for every residential project in NSW?

You need HBCF cover for any residential building work valued over $20,000 (including GST). This includes new builds, renovations, additions, and other residential construction work. A certificate of insurance must be issued before work begins on each project.

Can I choose my own insurer for NSW home warranty insurance?

No. In NSW, home warranty insurance is provided exclusively through the Home Building Compensation Fund (HBCF) administered by icare. You can’t shop between insurers. However, you can lodge your application through an authorised broker like Silverback, who can help you prepare your application and manage your eligibility.

What happens if my eligibility limit isn’t high enough for a new project?

You’ll need to apply for a limit increase before you can obtain a certificate of insurance for the new project. This typically requires updated financial information demonstrating your capacity to take on additional work. Silverback can help you prepare the financial case and submit the application.

How long does it take to get a HBCF certificate?

Processing times vary depending on the complexity of your application and whether icare requires additional information. Straightforward applications for builders within their existing limits can be processed relatively quickly. New applications or limit increase requests may take longer. Planning ahead is essential — don’t leave it until the week before you need to start on site.

What’s the difference between home warranty insurance and contract works insurance?

Home warranty insurance protects the homeowner if the builder can’t complete the work or fix defects due to death, disappearance, or insolvency. Contract works insurance protects against physical loss or damage to the project during construction (fire, storm, theft, accidental damage). They cover different risks, and most residential builders need both.

Silverback Insurance Pty Ltd (CAR 1283436) is a Corporate Authorised Representative of Australian Broker Network Pty Ltd (AFSL 253131). The information on this page is general advice only and has been prepared without taking into account your particular objectives, financial situation or needs. You should consider the relevant Product Disclosure Statement and policy wording before making any decision about insurance. Terms, conditions, limits and exclusions apply. Home warranty insurance in NSW is provided through the Home Building Compensation Fund (HBCF) administered by icare.

Surety Bonds

Surety Bonds for Australian Construction

Surety Bonds are financial guarantees issued by an insurer to a third party (the beneficiary) on behalf of your business (the principal). They’re an alternative to bank guarantees — freeing up working capital and protecting cash flow, while still satisfying contract obligations.

For Australian builders, developers, and subcontractors, Surety Bonds are increasingly the preferred instrument for securing contract performance, retention releases, and bid tenders on large projects.

Types of Surety Bonds Silverback Arranges

  • Performance Bonds — guarantee that you’ll complete a contract to the agreed terms. Typical bond value is 5–10% of contract price.
  • Bid / Tender Bonds — support your tender submission, providing the principal with recourse if you’re awarded a project but fail to enter the contract.
  • Retention Bonds — replace cash retention held back by the principal, releasing capital held over the defects liability period.
  • Advance Payment Bonds — protect the principal on upfront payments for materials or mobilisation, guaranteeing they’ll be returned if you default.
  • Maintenance / Warranty Bonds — cover defects rectification obligations post-completion.
  • Off-Site Materials / Supply Bonds — guarantee delivery of materials paid for in advance.

Surety Bonds vs Bank Guarantees — Why Builders Prefer Bonds

  • No cash collateral required — banks typically require 100% security; surety underwriters do not.
  • Off-balance-sheet instrument — doesn’t reduce your borrowing capacity with the bank.
  • Faster issuance — days rather than weeks once a facility is in place.
  • Unconditional ‘on-demand’ wording available — equivalent protection to a bank guarantee for the principal.
  • Facility-based — once approved, multiple bonds can be issued from the same line without re-underwriting each time.

Who’s Eligible for a Surety Facility?

  • Builders with a minimum 3 years of trading history
  • Positive net assets and evidenced working capital
  • Clean project history — successful completions, minimal disputes
  • Audited or reviewed annual financial statements

The underwriter will assess your balance sheet, project pipeline, and track record. Facility limits typically start at $500k and scale with your financial strength.

Why Silverback for Surety Bonds?

  • Relationships with the major surety markets — Assetinsure, QBE, Vero, CGU, Swiss Re Corporate Solutions, Liberty, and specialist underwriters
  • Construction-focused — we understand bond wordings, DLP obligations, and head contract nuances
  • Structured facility approach — not one-off bonds; ongoing capacity so you can respond to tenders quickly
  • Claims advocacy if ever called — including technical defence where appropriate

Request a quote for Surety Bonds — or call us on 0410 152 835 to discuss a facility structure for your project pipeline.

Related Cover

Most builders we look after carry several of these alongside Surety Bonds:

Custom-Cover_Petara-Tanuvasa-001

Petara Tanuvasa Named Insurance Business Elite Broker 2026

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Silverback Insurance Director recognised among Australia’s top insurance professionals

Silverback Insurance is proud to announce that Director Petara Tanuvasa has been named an Insurance Business Elite Broker 2026 — one of Australia’s most prestigious recognitions in the insurance industry.

The Insurance Business Elite Brokers list is compiled annually by Insurance Business Australia, recognising brokers who demonstrate exceptional client outcomes, technical expertise, and a commitment to going beyond the standard for their clients. Being named on this list places Petara among an elite group of the country’s best-performing brokers.

What the Recognition Means for Silverback Insurance Clients

This recognition is a direct reflection of the work we do for our clients every day. At Silverback Insurance, we specialise in construction insurance — helping builders, contractors, and developers across Australia protect their projects, their people, and their businesses.

Being recognised as an Elite Broker means our clients can be confident they are working with a broker who:

  • Understands construction risk from the ground up — Petara’s background in claims and construction gives Silverback a unique edge in identifying and managing risk before it becomes a problem
  • Delivers real solutions, not generic policies — every client receives a tailored insurance strategy aligned to their specific project type, contract requirements, and risk profile
  • Goes above and beyond at claims time — when it matters most, Silverback stands beside its clients to guide them through the process and advocate on their behalf

About Petara Tanuvasa

Petara Tanuvasa founded Silverback Insurance to solve a problem he saw repeatedly from both sides of the industry: builders were being underserved by insurers who didn’t understand construction.

Starting his career in claims, Petara developed a deep understanding of how losses happen on construction sites — and how the right insurance structure can prevent financial disaster. That knowledge became the foundation of Silverback Insurance, which has grown to serve builders and contractors across Queensland and Australia.

His recognition as an Insurance Business Elite Broker 2026 is the result of years of dedication to the construction sector and a relentless focus on client outcomes.

Specialist Construction Insurance in Australia

Silverback Insurance provides specialist construction insurance solutions including:

  • Contract Works Insurance — protecting your project from physical loss or damage during construction
  • Public Liability Insurance — covering third-party injury and property damage claims
  • Professional Indemnity Insurance — protecting design-and-construct builders from professional liability claims
  • Home Warranty Insurance — mandatory cover for eligible residential building work
  • Workers Compensation Insurance — meeting your obligations as an employer on site

Whether you’re a sole trader builder, a medium-sized construction company, or a developer managing multiple projects, Silverback Insurance provides the expertise and access to market that protects what you’ve built.

Get in Touch

If you’d like to work with an award-winning construction insurance broker, we’d love to hear from you.

📞 0410 152 835
✉️ [email protected]
🌐 silverbackinsurance.com.au

Or book a free 15-minute consultation online.

Silverback Insurance Pty Ltd is a Corporate Authorised Representative (No. 1283436) of Australian Broker Network Pty Ltd (ABN 60 167 087 354, AFSL 253131).

Design and Construct Quote

DESIGN AND CONSTRUCT INSURANCE quote

INSURANCE – DESIGN AND CONSTRUCT INSURANCE – Quote

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PROPOSER’S DETAILS

1.4 Please provide the following details:

1.5 Please provide the following details for each of the Proposer’s principals, partners or directors;

1.6 Has any principal, partner or a director been working in the relevant industry or occupation for less than 3 years?
1.7 Does the Proposer or any of its principals, partners or directors currently hold membership of any professional body or association?
1.8 Is the Proposer or any of its principals, partners, directors or employees required to be licensed or registered under any government legislation or regulation?
Are all such licences/ registrations current?
Has the Proposer or any its principals, partners, directors or employees ever had any such licence or registration cancelled, suspended, revoked or made subject to special conditions?

Please provide the current full time equivalent number of staff in the following categories (total for all entities in Q1.1 above);

PROFESSIONAL ACTIVITIES

2.2 Please provide the number of permanent employees of the Proposer with the following tertiary level qualifications (bachelor degree or higher) who are involved in the professional activities of the Proposer:

2.3 Has the Proposer ever been involved in any project utilising design, technology or methods that could reasonably be regarded as new or innovative?
2.4 Has there been any substantial change in the professional or business activities of the Proposer or the number of professional employees (as described in Q2.1 and Q2.2 above) in the last 2 years?
2.5 Does the Proposer envisage any change in their professional or business activities, or the commencement of any major new operations during the next 12 months?
2.6 Is the Proposer aware of any professional or business activity that has been conducted by the Proposer (or their predecessors in business) in the past that is no longer conducted by the Proposer?

If Yes, please provide the following details on a separate attachment.

- Type of business/ activity.
- Period during which such business/ activity was conducted.
- Approximate % of gross fees/ income derived from such business/ activity during applicable period.
- Reason for business/ activity being discontinued.

2.7 Has the Proposer ever traded under any name other than those declared in Q1.1 above?
If Yes, please provide the following details;
2.8 Has the Proposer ever been involved in any merger or acquisition in the last 5 years?
2.9 Does the Proposer or any of its principals, partners or directors currently hold a financial or managerial interest in any other entity or business not declared in Q1.1 above?
2.10 Has the Proposer in the last 10 years held a financial or managerial interest in any other entity or business not declared in Q1.1 or Q2.7 above (or a predecessor in business of such entity or business)?
2.11 Has the Proposer ever been engaged on a project in which it held an equity interest?
2.12 Has the Proposer ever experienced any difficulties with cash flow, given consideration to potential insolvency or administration, or is there any reason to believe that the Proposer may experience financial distress during the policy period?
2.13 Has a claim ever been made against the Proposer under the Security of Payments Act and/ or has the Proposer ever been in breach of any payment terms with suppliers or sub-contractor?
2.14 Has the Proposer ever engaged in the manufacture or fabrication of any pre-engineered unit or assembly?
2.15 Has the Proposer been involved in any form of joint venture in the last 10 years?

REVENUE

3.2 Please provide the Proposer’s total revenue:

Please Note - Include income from joint ventures and fees attributable to consultants, sub-contractors, etc.

Current financial year (estimate):
Last financial year (actual):
Previous financial year (actual):

Please provide a breakdown of the Proposer’s total revenue as provided in Q3.2 above into the following categories:

Contract Type/ Source of Revenue

Revenue derived from contracts where the Proposer was responsible for both design & construction/ installation/ manufacture & undertook the design themselves.

Revenue derived from contracts where the Proposer was responsible for both design and construction/ installation/ manufacture, but sub-contracted the design.

Fees received for design only contracts including reports, consulting engineering services, feasibility studies, etc.

Fees received from contracts where the Proposer was engaged as a Project/ Construction Manager or to supervise construction.

Revenue derived from contracts where the Proposer undertook construction, erection, installation or manufacturing activities, but had no responsibility for design or project management/ supervisory services.

Revenue not included above. Please provide details of the nature of the activities from which such revenue is derived.

Please Note – Revenue declared in this question must be equal to the total revenue declared for the last financial year and the current financial year in Q3.2 above.

3.4 Please provide a breakdown of the Proposer’s total revenue derived from each of the following contract/ project types for the last financial year as provided in Q3.2 above:

Contract/ Project Type
Has there been any material change to the breakdown between professional and non-professional activities, as described in Q3.3 above, undertaken by the Proposer in the last 3 years?
Has there been any material change to the nature of the projects, as described in Q3.4 above, undertaken by the Proposer in the last 3 years?

3.7 In respect of total revenue earned for the last financial year, please provide a breakdown by state.

3.8 In respect of total revenue earned for the last financial year, outside of Australia, as declared in Q3.2, please provide a breakdown by country.

3.9 In respect of total revenue earned for the last financial year, outside of Australia, as declared in Q3.2, was any such revenue derived from contracts or agreements that are subject to foreign law?
3.10 Have the levels of revenue and / or countries declared in Q3.8 and Q3.9 varied materially during the last 3 years?
3.11 Does any single client or contract represent more than 30% of the Proposer’s total revenue in any one of the last 3 financial years?

3.12 Please provide details of the 5 largest contracts or projects (by contract value) undertaken by the Proposer during the last 5 years:

Completed
3.14 Are the contracts/ projects declared in Q3.12 consistent with the Proposer’s normal business and professional activities as otherwise described in this proposal form?

RISK MANAGEMENT

4.1 Does the Proposer have in place any formal risk management, quality control and/ or compliance programmes and/ or procedures?
Are such programmes and/ or procedures subject to regular review?
4.2 Does the Proposer have in-house legal counsel?
4.3 Does the Proposer always confirm verbal reports in writing?

4.4 Please describe by a separate attachment any formal procedures in place in respect of the following:

a. ISO or other third-party accreditation for risk management programmes and/ or procedures utilised not
described in Question 4.1 above.

b. Provision of staff training in respect of the content and application of risk management programmes and/ or
procedures?

c. The identification and reporting of incidents or facts which may give rise to a professional indemnity claim.

d. Processes in place to review methods, practices, procedures etc. with the intention of avoiding the re-occurrence of
any past incidents or circumstances which may give rise to a professional liability claim?

e. Peer review and/ or dual sign-off or approval procedures in respect of any aspect of the business or professional
services provided by the Proposer.

f. The identification and management of conflicts of interest (both corporate and personal).

g. Where other locations of operation are noted in Q1.3 of this proposal, please provide details how the Proposer
ensures compliance with all corporate policies and procedures at such locations.

h. When were such procedures established, how regularly are they reviewed and by whom?

If such procedures are not in place, please advise how these exposures are managed.

CONTRACT MANAGEMENT

5.1 Does the Proposer have in place any formal procedures to evaluate and approve new clients, contracts and/ or tenders?
5.2 Does the Proposer use a standard form of contract or terms of engagement?
If Yes,
Are all non-standard contracts or terms of engagement legally reviewed prior to signing to assess any additional liabilities that may be assumed by the Proposer under such contracts?

5.3 Please describe by a separate attachment any applicable formal procedures, guidelines or due diligence processing that are in place when assessing the following contractual provisions or exposures:

Does the Proposer limit its contractual liability with clients:
Does the Proposer ever accept liability for consequential loss under contract?
Has the Proposer ever entered into hold-harmless agreements or otherwise waived any legal rights or entitlements which it may have against such consultants, sub-contractors or agents?
Does the Proposer ever agree to contract out of proportionate liability?
Does the Proposer ever agree to Deeds of Novation/ Novation Agreements?
Does the Proposer ensure that the scope of professional services to be performed are always clearly stipulated in the contract or terms of engagement?

CONSULTANTS, SUB-CONTRACTORS AND JOINT VENTURES

6.1 Has the Proposer ever engaged consultants, sub-contractors or agents?

6.3 If the answer to Q 6.1 is Yes,

Does the Proposer have any formal procedures or guidelines in place regarding the selection and engagement of consultants, sub-contractors and/or agents?
Has the Proposer always insisted that all consultants, sub-contractors and agents hold and maintain Professional Indemnity insurance?
Has the Proposer always used a standard form of contract with consultants, sub-contractors or agents?
6.4 Has the Proposer been involved in any form of joint venture in the last 10 years?

CLAIMS HISTORY

7.1 After appropriate inquiry, has the Proposer, or any of their current or former principals, partners, directors or staff members, or any of the Proposer’s predecessors, or any prior practice of any present or former partners, principals, or directors ever been subject to disciplinary proceedings or action for any kind for professional misconduct?

7.2  After appropriate inquiry, has the Proposer, or any of their current or former principals, partners, directors or staff members, or any of the Proposer’s predecessors, or any prior practice or business of any present or former partners, principals, or directors ever;

been subject to any claim made against them arising from any actual or alleged breach of professional duty, dishonesty or breach of any statutory provision?
notified any circumstance to an insurer that may give rise to such a claim?
7.3 Is the Proposer or any of its principals, partners or directors aware, after inquiry of all principals, partners, directors, managers and appropriate staff members, of any other facts or circumstances which may give rise to a claim of the type insured under this proposed policy of insurance (whether the Proposer considers themselves liable or otherwise)?
7.4 After appropriate inquiry, has the Proposer, or any of the Proposer’s predecessors, ever incurred any costs to rectify any fault or defect, or mitigate any potential or actual loss, arising from any actual or alleged breach of professional duty by them or any of their current or former principals, partners, directors or staff members, or any sub-consultant or sub-contractor for which they were responsible?

7.5 Is the Proposer or any of its principals, partners or directors aware, after inquiry of all principals, partners, directors, managers and appropriate staff members, of any current project or contract that is subject to:

any material delay in progress or completion?
any material cost overrun or adverse deviation from the project budget?

INSURANCE HISTORY AND REQUIREMENTS

8.1 Does the Proposer currently hold, or held in the past, a Professional Indemnity insurance policy?
If Yes, please provide the following details for the past 3 years;
8.2 Has the Proposer ever undertaken contracts for which a Specific Project Professional Indemnity insurance policy has been arranged?
If Yes, please provide the following details;
8.3 Has the Proposer ever had a Professional Indemnity insurance policy refused, cancelled or avoided, or had a renewal declined?
8.4 Has the Proposer ever had special terms or conditions imposed on a Professional Indemnity insurance policy by an insurer?
8.5 Has the Proposer ever had any entitlement to indemnity under any insurance policy denied or reduced due to non disclosure, misrepresentation or breach of a policy condition?
(Note: Limit of Indemnity may be inclusive of costs and expenses.)
(Note: Excess may be inclusive of costs and expenses)

8.8 Does the Proposer require any of the following Optional Extension to the policy?

Please Note:
- If the Proposer requests an Optional Extensions, the Insurer is not obliged to offer it.
- Where an Optional Extension is offered an additional premium may apply.
- The below are comments are for descriptive purposes only.
- To fully understand the nature and extent of indemnity provided by any Optional Extension, please read the relevant clause in the applicable policy wording and/ or seek advice from your insurance broker.

Automatic Reinstatement – Does the Proposer require an extension providing for the automatic reinstatement of the Limit of Indemnity?
Contractual Liability – Does the Proposer require an extension to provide indemnity under a hold harmless provision, or other contractual indemnities, in a client’s contract?
Third Party Liability – Does the Proposer require an extension to provide indemnity where the Proposer has waived or limited their rights of recovery or contribution against a third-party under a contract?
Proportionate Liability – Does the Proposer require an extension to provide indemnity for liabilities assumed under a contract by virtue of agreeing to contract out of proportionate liability legislation?
Novation Agreements – Does the Proposer require an extension to provide indemnity for liabilities assumed under a Deed of Novation or a Novation Agreement?
Principal’s Indemnity – Does the Proposer require an extension to satisfy a contractual obligation to extend indemnity under the Proposer’s Professional Indemnity policy to a principal under such contract?
Mitigation or Rectification – Does the Proposer require an extension to provide indemnity for the reasonable direct costs and expenses incurred in taking action to rectify or mitigate the unintended effects of an act, error or omission that would otherwise result in a claim indemnified under the Proposer’s Professional Indemnity policy?

Supported Documents

Click or drag files to this area to upload. You can upload up to 5 files.
I agree to the Privacy Policy and Terms of Engagement.

Duty of Disclosure

Your duty of disclosure to your insurance broker requires you to provide all relevant information that may impact the decision to insure you and the terms of the insurance contract, both when initiating and renewing the policy. Exceptions include information that reduces risk, is common knowledge, known by the insurer, or waived by the insurer. Failure to disclose necessary information may result in policy cancellation, reduced indemnification, or both. Fraudulent non-disclosure could lead to claim denial and policy nullification.

It is essential to answer all questions truthfully to avoid misrepresentation. Non-compliance with the duty of disclosure may lead to reduced liability for claims or policy cancellation, with fraudulent non-disclosure resulting in claim denial and policy invalidation.

Management Liability Quote

MANAGEMENT LIABILITY

INSURANCE – Management Liability – Quote

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General Information

Policy Details

History

Have You (the insured) or any of Your Directors ever had any insurance declined or cancelled by an insurer or had any special conditions imposed or suffered a loss where the cause relates to arson or fraud in the last five years?
Have You (the insured) or any of Your Directors, Officers or Senior Staff of the Insured ever been Bankrupt or been a Director of an organisation that was placed in Receivership, liquidation or provisional liquidation?
Have you (the Insured) or any of your Directors had any incidents, prosecutions (or attempted) prosecutions, fine or penalty under any government legislation or from any authority in regards your business, or any penalty adjustments from including under OH & S, environmental, fatigue or the like?
Have you (the Insured) or any of your Directors had any facts or circumstances and/or suffered any loss the subject of which you are submitting to be insured, or made any claims on any professional and financial risks policies, or related policies in the past five years?

 Cover Details:

 State

Human Resource Management:

Does the Company have written management guidelines for termination of employment?
Has there been, or will there be, any redundancies in the past/next 12 months?

Fraud Prevention Controls

a) Signing cheques, authorising payments or issuing funds transfer instructions above $5,000
b) Refund of monies or return of goods above $5,000
c) Reconciling bank statements

Overseas Cover

Do you operate in Australia / New Zealand only?

Solvency of Insured Entity:

a) Are your current assets greater than your current Liabilities?
b) Do you have any annually positive cashflow?

Outside Directorship Cover:

Do you want the Policy to provide cover for persons holding outside directorship positions?

Details of Insurance:

Optional Covers:

Extensions

Re-instatement Cover:

 Stamp Duty Exemption

Supporting Documents

Click or drag files to this area to upload. You can upload up to 5 files.
I agree to the Privacy Policy and Terms of Engagement.

Duty of Disclosure

Your duty of disclosure to your insurance broker requires you to provide all relevant information that may impact the decision to insure you and the terms of the insurance contract, both when initiating and renewing the policy. Exceptions include information that reduces risk, is common knowledge, known by the insurer, or waived by the insurer. Failure to disclose necessary information may result in policy cancellation, reduced indemnification, or both. Fraudulent non-disclosure could lead to claim denial and policy nullification.

It is essential to answer all questions truthfully to avoid misrepresentation. Non-compliance with the duty of disclosure may lead to reduced liability for claims or policy cancellation, with fraudulent non-disclosure resulting in claim denial and policy invalidation.

Cyber Protection quote

Cyber Protection

INSURANCE – Cyber Protection – Quote

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General Information

Policy Details

Annual Revenue for the last 2 years:

Is more than 25% of your revenue from the USA?
Do you have any financial nexus, financial agreements or contractual associations to countries other than Australia or New Zealand?

State:

Do you deploy a business grade firewall at all external gateways of your network and a business grade anti-virus application across your entire network, including servers or endpoints
You install critical patches within 30 days of release.
Data that is necessary to run the business is backed up by you (or your Cloud Service Provider) at least every 7 days
This backed up data is stored in an environment which is completely separate to your network and its integrity is tested at least every 180 days.
Where applicable you are compliant with the Payment Card Industry (PCI) Data Security Standards?
You are not aware of any matter that is reasonably likely to give rise to any loss or claim, nor have you suffered any loss, nor has any claim been made against you in the last 24 months which you would seek an indemnity for under our cyber insurance policy.
You secure remote access to your applications that are necessary to run your business with a minimum of 2 factor authentication

Optional Extensions

Funds Transfer Fraud:
Do you have a written procedure for validating all changes to vendor/client/customer contact details and/or bank account details in writing and then over the telephone with oral confirmation from the relevant employee/partner/director of the Insured or vendor/client/customer before the changes are actioned?
If yes, is that written procedure always followed?
Telephone Hacking:
Bricking Events:

Supporting Documents

Click or drag files to this area to upload. You can upload up to 5 files.
I agree to the Privacy Policy and Terms of Engagement.

Duty of Disclosure

Your duty of disclosure to your insurance broker requires you to provide all relevant information that may impact the decision to insure you and the terms of the insurance contract, both when initiating and renewing the policy. Exceptions include information that reduces risk, is common knowledge, known by the insurer, or waived by the insurer. Failure to disclose necessary information may result in policy cancellation, reduced indemnification, or both. Fraudulent non-disclosure could lead to claim denial and policy nullification.

It is essential to answer all questions truthfully to avoid misrepresentation. Non-compliance with the duty of disclosure may lead to reduced liability for claims or policy cancellation, with fraudulent non-disclosure resulting in claim denial and policy invalidation.

Professional Indemnity

Professional Indemnity

INSURANCE – Professional Indemnity – Quote

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Cover Limits

Please advise the preferred Indemnity Limit
Please advise the preferred Policy Excess

Insured Details

For the purpose of calculating Stamp Duty is all turnover performed in the same state as the Insureds address?

Insurance History

As at todays date does the Proposed Insured have Professional Indemnity Insurance currently in force that has been paid for?

Principals/Partners/Directors Details

Business Details

Have you previously undertaken any types of Professional Services which are not now undertaken?
Does any one contract or client represent more than 30% of the Proposed Insureds fee income
Please provide a brief description of the Proposed Insureds five (5) largest contracts or projects during the last 5 years:
Are any of the Proposed Insureds business activities performed outside of Australia or provided to clients based outside of Australia?

Claims History

Other issues to disclose

Has the Proposed Insured ever had any Insurer decline a proposal, imposed any special terms, cancelled or refused to renew a Professional Indemnity Insurance Policy?
Any Other Issues You Must Disclose under your Duty of Disclosure

Additional Information

Please provide any additional details or information that may be relevant to your inquiry.

Supporting documents

Click or drag files to this area to upload. You can upload up to 5 files.
Upload your completed proposals, valuations and any other supporting documentation

Document Confirmation

I confirm I have attached the following documents:
Privacy Policy

Duty of Disclosure

Your duty of disclosure to your insurance broker requires you to provide all relevant information that may impact the decision to insure you and the terms of the insurance contract, both when initiating and renewing the policy. Exceptions include information that reduces risk, is common knowledge, known by the insurer, or waived by the insurer. Failure to disclose necessary information may result in policy cancellation, reduced indemnification, or both. Fraudulent non-disclosure could lead to claim denial and policy nullification.

It is essential to answer all questions truthfully to avoid misrepresentation. Non-compliance with the duty of disclosure may lead to reduced liability for claims or policy cancellation, with fraudulent non-disclosure resulting in claim denial and policy invalidation.

Liability Insurance

Liability Insurance

INSURANCE – Liability Insurance – Quote

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Cover Limits

Please advise the preferred Policy Limit
Please advise the preferred Policy Excess
Product Recall Expenses
Errors and Omissions
Physical or Legal Control

Insured Details

For the purpose of calculating Stamp Duty is all turnover performed in the same state as the Insureds address?

Insurance History

Is the property currently insured?

Property Usage

Business Details

Do you own or use any unregistered vehicles, cranes or mobile plant and equipment?
Do you manufacture or import Products?
Do you strictly maintain a quality control program for all of your Products?
Are any of your products used in aircraft, watercraft, hovercraft, power stations, chemical plants, petrochemical plants, pharmaceuticals, mining or drilling sites?
Do you assume any liability under contract or hold harmless other parties under contract?
Will any Products be exported in the next 12 months?
Do you strictly maintain a product recall program?
Are any of the Proposed Insureds business activities performed outside of Australia or provided to clients based outside of Australia?

Claims History

Other issues to disclose

Additional Information

Supporting documents

Click or drag files to this area to upload. You can upload up to 10 files.
Upload any completed proposals, brochures/marketing material, risk engineering reports, financial statements, expiring insurer endorsements, etc. that may be relevant to your placement request

Document Confirmation

I confirm I have attached the following documents:
Privacy Policy

Duty of Disclosure

Your duty of disclosure to your insurance broker requires you to provide all relevant information that may impact the decision to insure you and the terms of the insurance contract, both when initiating and renewing the policy. Exceptions include information that reduces risk, is common knowledge, known by the insurer, or waived by the insurer. Failure to disclose necessary information may result in policy cancellation, reduced indemnification, or both. Fraudulent non-disclosure could lead to claim denial and policy nullification.

It is essential to answer all questions truthfully to avoid misrepresentation. Non-compliance with the duty of disclosure may lead to reduced liability for claims or policy cancellation, with fraudulent non-disclosure resulting in claim denial and policy invalidation.

Home Warranty Insurance quote

Home Warranty Insurance

INSURANCE – Home Warranty Insurance– Quote

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 Brokerage Information

Insured Details

Is mailing address same as business address?
Mailing Address:

Background (Current Alternate Providers)

Has any Registered Building Practitioner/ Partner/ Director ever obtained domestic building Insurance with another insurer?
Is the eligibility with this other insurer still current?

Has any Registered Building Practitioner/ Partner/ Director of the Builder:

1. Ever been involved in any business placed into external administration, liquidation, and receivership or entered into a scheme of arrangement (formal or informal)?
2. Ever been declared bankrupt, or ever entered into a scheme of arrangement, composition debt agreement or a personal insolvency agreement under the Bankruptcy Act?
3. Or any business in which you have been involved, been a party to any legal proceedings or been convicted of any criminal offences (excluding traffic offences) within the last 10 years?
4. Had a pending, or even been found guilty in a, disciplinary proceeding by any Tribunal, Board, Commission or Authority in relation to building work?
5. Had any claims (paid and unpaid) made against any domestic building insurance policy for work undertaken by you or any business you have been involved in?
6. Or any business in which you have been involved in ever been declined domestic building insurance or eligibility for domestic building insurance?

Limits Required

Please provide the limits you require in the upcoming 12 months.

Forward Pipeline

What is your forward pipeline for the next 12 months?

Average construction cycle

Are you seeking approval for Architect Managed and Tendered Projects greater than $750,000?

Eligibility Questions

1. Has the Building entity traded profitably with a net profit before tax as at the end of the last financial year?
2. Please confirm that the Builder remains solvent and can meet its obligations when and as they fall due and that to the best of your knowledge this will be maintained for the next 12 months.
3. Is the Builder applicant up to date with respect to its statutory obligations (e.g. ATO liabilities, GST BAS, Employee Superannuation, Payroll Tax, Workcover, Long Service Leave, Redundancy etc.)? This means that there are no outstanding taxation liabilities as at the end of the last financial year to the ATO.
4. In the last 12 months have there been any residential construction matters handled by any State-based tribunal or court that resulted in orders for rectification or payment against any ‘relevant person’ associated with this eligibility application or through any previous or current residential construction business of which they were/are a director/partner/principal/shareholder or nominated supervisor?

Builder’s Accountant Details:

Statement of Assets and Liabilities

Property
Motor Vehicle
Boat / Caravan
Investments
Other

Supporting Documents

Click or drag files to this area to upload. You can upload up to 5 files.

Information Check List

Ensure all Registered Building Practitioner / Partners / Directors have:
Additional Check List – Sole Traders:
Additional Check List – Companies:
Additional Check List – Group Structures:
Privacy Policy

Duty of Disclosure

Your duty of disclosure to your insurance broker requires you to provide all relevant information that may impact the decision to insure you and the terms of the insurance contract, both when initiating and renewing the policy. Exceptions include information that reduces risk, is common knowledge, known by the insurer, or waived by the insurer. Failure to disclose necessary information may result in policy cancellation, reduced indemnification, or both. Fraudulent non-disclosure could lead to claim denial and policy nullification.

It is essential to answer all questions truthfully to avoid misrepresentation. Non-compliance with the duty of disclosure may lead to reduced liability for claims or policy cancellation, with fraudulent non-disclosure resulting in claim denial and policy invalidation.

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