Silverback Insurance Director Petara Tanuvasa has been recognised as an Insurance Business Elite Broker 2026 — delivering specialist cover for builders and construction professionals including contract works, public liability, professional indemnity, management liability, cyber insurance, home warranty (NSW, SA, ACT & WA), latent defect insurance.
Silverback Insurance is a specialist construction insurance brokerage founded in 2020, led by Director Petara Tanuvasa — Insurance Business Elite Broker 2026. We arrange contract works, public liability, professional indemnity, home warranty and hard to place cover for builders, contractors and developers across Australia. Silverback Insurance Pty Ltd (CAR 1283436 | ABN 74 643 561 746) is a Corporate Authorised Representative of Australian Broker Network Pty Ltd (AFSL 253131).
Updated September 2026 — reflects the NSW Building Commission’s latest extension of the professional indemnity insurance exemption.
NSW has again pushed back the date on which registered building practitioners must hold professional indemnity insurance. The exemption under the Design and Building Practitioners Act 2020 (DBP Act) has been extended by another 12 months, to 30 June 2027 — meaning mandatory “adequate” PI cover now starts on 1 July 2027.
That is the fourth time the deadline has moved since the Act commenced. If you’re a builder or design practitioner working on Class 2 buildings (and the Class 3 and 9c work the Act now captures), it would be easy to read this as another reason to put PI in the bottom drawer for a year. In my view, that would be a mistake — and having spent years administering construction contracts before becoming a broker, I’ve seen how these “we’ll sort it later” items behave when a project goes wrong.
What the DBP Act actually requires
Under the DBP Act and the Design and Building Practitioners Regulation 2021, registered design practitioners, principal design practitioners and building practitioners must be “adequately insured” against liability arising from the declarations they make — the design compliance declarations and building compliance declarations lodged on the NSW Planning Portal.
The Act deliberately does not set a fixed dollar amount. “Adequate” is self-assessed, and the Regulation expects you to weigh up:
the nature and risk profile of the work you typically declare;
the volume of work you undertake and your years in practice;
a reasonable estimate of what claims could cost;
your capacity to meet excesses and uninsured amounts; and
the limits, exclusions and conditions of the policy itself.
Just as importantly, you must keep records showing how you decided your cover was adequate, retain them for at least five years, and produce them if asked. A certificate of currency on its own won’t be enough — the regulator can ask for your reasoning.
Why the deadline keeps moving
The honest answer: capacity. Insurers have been cautious about writing PI for builders who make building compliance declarations, particularly where cladding, waterproofing or certification exposures are involved. Each extension has been the Government acknowledging that some practitioners have had limited access to products that genuinely cover their declared work.
The market has improved since 2022 — more insurers are writing construction PI, and policies designed around DBP declarations now exist. But “improved” is not “cheap and instant”. Builders who wait until June 2027 will be applying at the same time as every other practitioner who waited, into a market that still underwrites this class carefully.
Why waiting until 2027 is the wrong move
1. PI is claims-made cover. A PI policy responds to claims made while the policy is in force — not to when the work was done. Every year you practise uninsured is a year of declarations that no future policy is obliged to pick up unless you negotiate retroactive cover, and retroactive dates are one of the first things insurers restrict for new entrants. Starting cover now means your retroactive date starts now.
2. Your declarations already carry personal liability. The DBP Act created a statutory duty of care to owners — including subsequent owners and strata corporations — and compliance declarations are signed by individuals. The liability exists today; only the insurance mandate has been deferred.
3. Underwriters reward history. Practitioners who come to market with two or three years of clean PI history, good contract documentation and a clear risk story get materially better terms than practitioners buying under deadline pressure. I’d rather negotiate for you in 2026 than queue for you in June 2027.
4. “Adequate” takes time to get right. If your work includes design responsibility under design-and-construct contracts, a standard builder’s PI wording may not respond the way you expect. Matching policy exclusions to your actual scope — design delegation, cladding, certification reliance — is exactly the work that shouldn’t be done in a rush.
What I’d do between now and July 2027
First, map your exposure: which projects involve compliance declarations, design input, or Class 2/3/9c work. Second, get an indicative PI quote now, even if you don’t bind immediately — you’ll learn what underwriters will ask of you and what your realistic premium looks like. Third, if you carry design responsibility, review whether design & construct cover or dedicated professional indemnity is the right structure. And document everything — the adequacy assessment the Regulation expects is far easier to build as you go than to reconstruct later.
We’ve set out the full picture for NSW practitioners — who’s caught, what insurers ask for, and how the declarations work — on our Professional Indemnity for NSW Builders page.
Talk it through before the queue forms
If you’re a NSW builder or design practitioner and you’re not sure whether your current cover would count as “adequate” under the DBP Act, that’s a 20-minute conversation, not a project. Book a time with me or request a quote and we’ll look at your actual scope of work, not a generic checklist.
Petara Tanuvasa is the director of Silverback Insurance, a construction-specialist insurance broker. Before broking, he worked as a contract administrator for major Australian builders. General information only — this article doesn’t take your personal circumstances into account.
If you hold a building contract, you almost certainly have an obligation to insure the works — and to carry public liability. Contract works and public liability insurance are the two covers nearly every residential and commercial builder in Australia buys, usually packaged together. They’re also the covers where builders most often discover a gap at exactly the wrong moment: after the loss. Here’s how the two sections work, how annual and single-project policies differ, and where the common gaps sit.
Two Covers, One Policy
Most builders’ policies are written in two sections:
Section 1 — Contract works (material damage): covers physical loss or damage to the building works themselves while they’re under construction — fire, storm, water damage, vandalism, theft of incorporated materials, and accidental damage. Cover typically runs from site commencement until practical completion or handover, with a limited extension into the defects liability period.
Section 2 — Public liability: covers your legal liability for personal injury or third-party property damage arising from your business activities — a member of the public injured near the site, damage to a neighbour’s property, a subcontractor’s grinder starting a fire that spreads.
The two sections answer different questions. Contract works asks: what if the project itself is damaged? Public liability asks: what if the project damages someone else? Builders need both — and neither covers defective workmanship itself, professional design errors, or injuries to your own workers (that’s workers compensation).
Annual Policy or Single Project?
Annual (turnover-based) policies cover all projects a builder starts during the policy period, declared against estimated annual turnover, with a maximum sum insured per project. For builders running multiple jobs, this is usually more economical and removes the risk of forgetting to insure a job.
Single project policies cover one nominated contract from commencement to completion, often used for projects that exceed the annual policy’s per-project cap, for joint ventures, or where the principal requires a project-specific policy.
Two details deserve attention on annual policies: the per-project maximum (a job that grows past the cap mid-build can be underinsured) and the maximum project period (long-running projects can outrun the policy’s standard project duration and need extension).
What the Head Contract Requires
Insurance clauses in building contracts are not standard. Common head contract requirements include:
Minimum public liability limits (commonly $10 million or $20 million)
The principal and financiers named as interested parties
Cover to be maintained through the defects liability period
Evidence of currency before site access
On larger commercial projects the principal sometimes arranges the contract works insurance instead (principal-arranged or project-specific insurance). Where that happens, builders should confirm exactly what the principal’s policy covers and what deductibles apply — principal-arranged policies frequently carry large excesses that the contract passes down to the builder, and they rarely cover the builder’s own tools, plant or hired-in equipment.
The Common Gaps
Most contract works claims disputes trace back to a handful of recurring gaps:
Defective design and workmanship exclusions. Policies exclude the cost of rectifying defective work itself; where they differ is how much of the resulting damage they cover. The policy wording matters more than the premium here.
Existing structures. A renovation or extension policy that covers the new works but not the existing house it’s attached to — a critical gap in residential alteration work.
Cover after practical completion. Damage during the defects liability period, or to unsold display homes, needs specific extensions.
Tools, plant and equipment. Usually a separate optional section, not automatic.
Materials in transit or storage. Off-site materials may need to be specifically covered.
Escalation and removal costs. The sum insured should reflect the full rebuild exposure: contract value plus cost escalation, demolition and debris removal, and consultants’ fees — not just the contract price.
Collecting Subcontractor Insurances: The Procedure Most Builders Skip
Your own contract works and public liability policies protect your projects and your liability — they are not a substitute for the insurances of the businesses working under you. When an uninsured or underinsured subcontractor causes a loss, the claim doesn’t politely wait for their insurer: it typically lands on the builder — on your policy (with your excess and your claims history absorbing it) or, where cover doesn’t respond, on your balance sheet. As the head contractor you also carry site-wide duties that make you the natural first target when something goes wrong. An effective procedure for collecting and checking subcontractor insurances is one of the most cost-effective risk controls a building business can run.
The procedure needs to cover everyone who contributes to the works, not just the trades:
Trade subcontractors — public liability as a minimum, plus workers compensation for their own people; check the liability limit meets your head contract requirement, not just theirs.
Design consultants — architects, engineers and drafters need current professional indemnity; because PI is claims-made, cover has to be in force when a claim is made, potentially years after the design work.
Supply-and-install contractors and material manufacturers — fabricators, facade and roofing system installers, and manufacturers who design or certify what they supply may need public and products liability and PI where design input is part of the package.
What an effective procedure looks like in practice:
Certificates of currency before site access — no certificate, no start; collected every engagement, not once per relationship.
Check the detail, not just the existence — limits against contract requirements, the business name matching the entity you engaged, and whether the policy actually covers the activity (height, depth, hot work and demolition restrictions are common).
Track expiry dates — policies renew annually; a certificate collected in March says nothing about October. Diarise and re-collect.
Flow-down insurance clauses in your subcontracts, mirroring what the head contract demands of you.
Keep the records for years — defect and injury claims commonly arrive long after completion, and the certificate you collected is your evidence of a responsible engagement process.
The structure of cover is similar, but the exposures differ. Residential builders in NSW also carry separate obligations under the Home Building Compensation scheme for applicable residential work — HBCF cover is distinct from contract works and public liability and doesn’t replace either. Commercial builders more often meet principal-arranged insurance, higher liability limits, and contractual interest clauses. In both cases the discipline is the same: read the insurance clause of the contract before pricing the job, and match the policy to it.
Frequently Asked Questions
Does public liability cover defective work?
No. Public liability responds to personal injury or third-party property damage caused by your business activities. The cost of fixing defective work itself is excluded, and design errors are a professional indemnity matter.
What is the difference between contract works and public liability?
Contract works covers damage to the building works under construction. Public liability covers your legal liability for injury or damage to third parties. They are usually packaged as two sections of one builders policy.
Should I buy an annual policy or insure each project?
Builders running multiple projects generally use annual turnover-based policies with a per-project cap; single project policies suit jobs above that cap or where the contract demands a project-specific policy. The right structure depends on your pipeline — consider both against your actual contracts.
Does contract works insurance cover my tools and equipment?
Not automatically. Tools, plant and hired-in equipment are typically optional sections that must be added.
My contract says the principal arranges the insurance — am I covered?
Possibly for the works, but principal-arranged policies often carry high excesses passed down to contractors and do not cover your tools, plant or liability. Review what the principal’s policy actually includes before relying on it.
This article is current as at July 2026. The information provided is general advice only and has been prepared without taking into account your particular objectives, financial situation or needs. Silverback Insurance Pty Ltd (CAR 1283436 | ABN 74 643 561 746) is a Corporate Authorised Representative of Australian Broker Network Pty Ltd (AFSL 304 139).
Subcontractor Insurance Management for Australian Builders
Every builder’s risk position depends on more than their own policies. The trades, design consultants and supply-and-install contractors engaged under your head contract each bring their own exposures onto your project — and when one of them is uninsured or underinsured for the work they’re actually doing, the loss has a way of finding its way to the builder: through your policy, your excess, your claims history, or your balance sheet. Collecting and verifying subcontractor insurances is one of the most effective risk controls a building business can run, and one of the most commonly neglected.
Silverback Insurance helps Australian residential and commercial builders establish practical procedures for collecting, reviewing and managing the insurances of everyone who contributes to their projects — and, where a subcontractor’s cover doesn’t suit the scope of works they’re engaged to perform, we can assist in arranging cover that does.
Whose Insurances Builders Need to Collect
Trade subcontractors — public liability as a minimum, with limits that meet your head contract requirement (not just theirs), plus workers compensation for their own people
Design consultants — architects, engineers, drafters and certifiers need current professional indemnity; because PI is claims-made, cover must be in force when a claim arrives, potentially years after the design work
Supply-and-install contractors — facade, roofing, structural steel and joinery packages where installation comes with the product need public and products liability suited to on-site work
Material manufacturers with design input — where a manufacturer designs, certifies or engineers what they supply, professional indemnity may be needed alongside products liability
Labour hire and plant operators — confirm whose policy covers the worker and the machine, and on what basis
What an Effective Collection Procedure Looks Like
Certificates of currency before site access — collected for every engagement, not once per relationship
Detail checks, not existence checks — limits against the head contract, the insured entity matching the entity you engaged, and activity restrictions (height, depth, hot work, demolition) that could void cover for the actual scope
Expiry tracking — policies renew annually; a certificate collected in March says nothing about October
Flow-down insurance clauses in subcontracts, mirroring what the head contract requires of you
Long-term record keeping — defect and injury claims commonly arrive years after completion; your collection records evidence a responsible engagement process
Where Software Helps — and Where It Stops
Construction management, estimating, safety and compliance platforms — such as Procore, Billy, Worx Safety, Wunderbuild and BuildPrice — increasingly include tools that make the collection side far easier: document requests, certificate uploads, expiry alerts and compliance dashboards. If you run one of these platforms, use those features — automated collection beats spreadsheets and email chains every time.
What software can’t tell you is whether the certificate it collected represents the right cover for the scope of works that subcontractor is engaged to perform under your head contract. A certificate can be current and still carry the wrong limit, an excluded activity, a mismatched entity, or no cover at all for the design input in the package. That review is broking work. Silverback goes that step further: we review the insurances your systems collect against each subcontractor’s actual engagement, flag where cover doesn’t match the scope, and where a subcontractor doesn’t hold suitable insurance, we can assist them to arrange cover appropriate to the works — so the gap is closed rather than just recorded.
Why Silverback for Subcontractor Insurance Management?
Contract administration background — we’ve run these procedures inside building companies, not just read about them
Review beyond collection — certificates checked against head contract requirements and each subcontractor’s actual scope of works
Cover where gaps exist — assistance for subcontractors to arrange insurance suited to the works they’re engaged to perform
Whole-of-project view — subcontractor insurances considered alongside your own contract works, liability and PI program
If you’re a registered building practitioner in NSW, the professional indemnity requirements under the Design and Building Practitioners Act 2020 have been a moving target. The deadline has shifted more than once — most recently in June 2026, when the NSW Government extended the exemption again. Here’s where things actually stand, what the Act requires, and what to consider before the current exemption ends.
The short version: registered building practitioners are required under the DBP Act to be adequately insured for the building work they carry out. A regulatory exemption has deferred that requirement, and following the June 2026 amendments the exemption now runs to 30 June 2027 — meaning mandatory professional indemnity insurance for registered building practitioners is currently scheduled to commence on 1 July 2027. Design practitioners and principal design practitioners are already subject to insurance requirements when making declarations.
What the DBP Act Does
The Design and Building Practitioners Act 2020 was NSW’s response to well-publicised defect failures in residential apartment buildings. It introduced three things that matter to builders:
Registration — design practitioners, principal design practitioners, building practitioners, professional engineers and specialist practitioners working on regulated buildings must be registered with NSW Fair Trading / Building Commission NSW.
Compliance declarations — regulated designs and building work on class 2 buildings (and mixed-use buildings with a class 2 part) require declarations lodged on the NSW Planning Portal.
A statutory duty of care — section 37 imposes a duty on anyone carrying out construction work to exercise reasonable care to avoid economic loss caused by defects. This duty is owed to current and future owners and can be enforced for years after completion.
That last point deserves emphasis: the statutory duty of care applies now, regardless of the insurance exemption. Builders are already exposed to defect claims for economic loss — the exemption only defers the obligation to hold insurance against that exposure, not the exposure itself.
Which Buildings Are Caught
The DBP regime currently applies to building work on class 2 buildings (broadly, apartment buildings) and buildings with a class 2 part — including alteration, repair and renovation work on existing class 2 buildings. The planned expansion to remedial work on existing class 3 and 9c buildings (boarding houses, residential care buildings) has been deferred to 1 July 2028 under the June 2026 amendments.
The Insurance Requirement and the Current Timeline
Under the Act, a registered practitioner must not carry out regulated work unless adequately insured. For building practitioners, that requirement has been progressively deferred by regulation — the government has acknowledged the limited availability of suitable insurance products for this exposure. The current position following the June 2026 amendments:
Registered building practitioners: exemption from the PI requirement extended to 30 June 2027; the requirement is scheduled to take effect from 1 July 2027.
Design practitioners and principal design practitioners: insurance obligations apply in connection with their registration and declarations — if you’re a builder who also takes design responsibility (design and construct delivery, amending designs, issuing specifications), your position needs particular attention.
Certifiers: separate requirements apply, including a continuing exemption allowing cladding-related exclusions.
Timelines under this Act have moved before, and they can move again in either direction. Check the current position with Building Commission NSW before making decisions based on a deadline.
What “Adequate” Insurance Means
The Act doesn’t prescribe a single minimum dollar figure for building practitioners. Instead, the framework requires cover that is adequate for the work being carried out, and practitioners are expected to assess adequacy against considerations such as:
Whether the premium and excess are affordable for the business
Whether the cover suits the nature and scale of the projects undertaken
Policy exclusions, sub-limits and conditions — and whether they cut across the actual work performed
The retroactive date — whether the policy responds to work completed in prior years
That last item is where builders most often get caught. Professional indemnity is written on a claims-made basis: the policy that responds is the one in force when the claim is made, not when the work was done. With a statutory duty of care that can be enforced roughly a decade after completion, a policy with a recent retroactive date — or a gap in continuous cover — can leave years of completed projects uninsured. Continuity matters as much as the limit.
Why Builders (Not Just Designers) Face PI Exposure
A common misconception is that PI is a designer’s problem. Builders face professional indemnity exposure whenever they do more than build strictly to someone else’s design:
Design and construct contracts, where design obligations sit with the builder
Amending, substituting or value-engineering design details on site
Issuing or interpreting specifications
Coordinating design consultants and passing on (or failing to pass on) design changes
Providing advice the client relies on
None of that is covered by public liability, which responds to personal injury and property damage — not economic loss from defective design or professional decisions. The two covers do different jobs, and class 2 work in NSW increasingly demands both.
Practical Steps Before 1 July 2027
Confirm your registration class and whether your work falls within the regulated scope (class 2 now; class 3/9c remedial from 2028)
Map where you take design responsibility across current and pipeline projects
If you hold PI already, review the retroactive date, exclusions and sub-limits against DBP-regulated work
If you don’t, start early — capacity for construction PI in Australia is limited and placement takes longer than most builders expect
Keep records: declarations, design changes, and who made which decision — they matter enormously if a claim arrives years later
Frequently Asked Questions
Is professional indemnity insurance mandatory for NSW builders right now?
For registered building practitioners, the requirement to be adequately insured under the DBP Act is currently deferred by a regulatory exemption, extended in June 2026 to 30 June 2027. The requirement is scheduled to commence on 1 July 2027. Design and principal design practitioners are already subject to insurance obligations. Check Building Commission NSW for the current position, as these timelines have changed before.
Does the statutory duty of care apply even while the insurance exemption operates?
Yes. Section 37 of the DBP Act imposes a duty of care to avoid economic loss from defects, and it applies now. The exemption defers the obligation to hold insurance, not the underlying liability exposure.
I only build — I don’t design. Do I still have PI exposure?
Potentially, yes. Builders face professional indemnity exposure when they take design responsibility under design and construct contracts, amend or substitute design details, issue specifications, coordinate consultants, or give advice that clients rely on. Public liability does not cover economic loss from those activities.
What does a retroactive date mean and why does it matter?
Professional indemnity operates on a claims-made basis — the policy in force when a claim is made is the one that responds. The retroactive date is the earliest date of work the policy will cover. Because the DBP duty of care can be enforced years after completion, a recent retroactive date or a gap in cover can leave past projects uninsured.
Which buildings does the DBP Act apply to in 2026?
Class 2 buildings and mixed-use buildings with a class 2 part, including alteration, repair and renovation work on existing class 2 buildings. The expansion to remedial work on existing class 3 and 9c buildings has been deferred to 1 July 2028.
If you’d like advice on how these requirements apply to your business, or a review of your current professional indemnity position, contact us or call Petara on 0410 152 835. You can also read our related guide on surety bonds for contract security.
This article is current as at July 2026 and describes the position following the June 2026 regulatory amendments; requirements may change. The information provided is general advice only and has been prepared without taking into account your particular objectives, financial situation or needs. Silverback Insurance Pty Ltd (CAR 1283436 | ABN 74 643 561 746) is a Corporate Authorised Representative of Australian Broker Network Pty Ltd (AFSL 304 139).
If you’re a builder or contractor delivering projects for principals, you already know the drill: almost every construction contract requires security — usually 5% of the contract value, often as two 2.5% instruments, one released at practical completion and one at the end of the defects liability period.
For decades, the default answer has been a bank guarantee. But there’s a growing problem with that default: banks don’t issue guarantees for free. They want security — cash on term deposit, a mortgage over property, or a General Security Agreement over everything your business owns. For a growing builder, that means real working capital locked away doing nothing, sometimes for years, while the defects liability period runs its course.
Surety bonds solve that problem. They’re issued unsecured, they’re accepted by government and most major principals across Australia, and for eligible builders they can release hundreds of thousands — sometimes millions — of dollars back into the business.
Here’s how the two instruments compare, who qualifies for surety, and how to decide which suits your business.
What Is a Bank Guarantee?
A bank guarantee is an unconditional, irrevocable undertaking from your bank to pay the beneficiary (usually the project principal) on demand, up to the face value of the guarantee. The principal doesn’t need to prove you defaulted — they simply present the guarantee and the bank pays.
The bank then recovers from you. Which is why banks secure guarantee facilities heavily:
Cash cover — often 100% of the guarantee value held on term deposit
Property security — a mortgage over business or personal property, frequently the family home for smaller builders
A General Security Agreement (GSA) — a charge over all present and future assets of the business
Director guarantees — personal liability for the directors
The guarantee itself is a well-understood, universally accepted instrument. The cost is what sits behind it: capital you can’t use to fund projects, take on more work, or absorb a slow-paying principal.
What Is a Surety Bond?
A surety bond (also called a contract performance bond) does exactly the same job. It’s an unconditional, irrevocable, on-demand undertaking to pay the beneficiary — issued not by a bank, but by a specialist surety provider backed by a major insurer or global reinsurer.
The wording and legal effect are materially identical to a bank guarantee. When the beneficiary presents the bond, the issuer pays on demand — there’s no insurance-style claims assessment, no proving fault. In fact, it’s important to understand that despite being arranged through insurance channels, a surety bond is not an insurance policy. It’s a financial security instrument, and the surety has full recourse to your business if a bond is called.
The critical difference is what secures it:
No tangible security. Typically no cash cover, no property mortgage, no GSA.
A Deed of Indemnity and Guarantee — the corporate group indemnifies the surety
Director guarantees — as with the bank
That’s it. The surety relies on the financial strength of your business rather than taking your assets as collateral. Leading surety paper in the Australian market is backed by reinsurers rated AA- by S&P — on par with the major banks — and is accepted by corporate principals, utilities, and government at federal, state and local level, meeting the Treasury guidelines of all state governments.
Where a principal’s contract specifically demands a bank instrument, major surety providers can also arrange bank-fronted bonds — a guarantee issued by a bank such as ANZ or HSBC, backed by your surety facility — so the capital benefit is preserved even on the strictest contracts.
Side-by-Side Comparison
Bank Guarantee
Surety Bond
Legal nature
Unconditional, irrevocable, on demand
Unconditional, irrevocable, on demand
Acceptance
Universal
Government at all levels, most corporates; bank-fronted option available
Security required
Cash, property, GSA + director guarantees
Deed of Indemnity + director guarantees only
Working capital
Capital locked as collateral
Capital released
Bank relationship
Consumes bank facility headroom
Frees bank appetite for growth funding
Issue speed
Days to weeks
Same-day once facility is established
Backed by
Your bank
Insurer/reinsurer paper, typically rated on par with Tier 1 banks
Who Qualifies for a Surety Facility?
Because the surety takes no tangible security, underwriting is rigorous. Providers are lending against your balance sheet and track record, so the qualification criteria in the Australian market typically look like this:
Turnover of at least $20 million per annum over the last three years
At least three consecutive years of profitability — one loss year is a genuine problem
Net tangible assets of $3 million or more — after stripping out goodwill, intangibles and doubtful related-party loans
Positive operating cash flow and positive working capital
Demonstrated capital retention — profits staying in the business, not swept out to directors each year
Professional financial management — monthly management accounts, project-level reporting, ideally reviewed at board level
The main contracting entity is not a trust — trustee structures are generally excluded
A solid track record of completed projects delivered without major disputes
Two things are automatic declines with most providers: an active payment arrangement with the ATO (or any financier or supplier), and involvement in speculative property development. If either applies to your business, address it before applying rather than discovering it mid-underwriting.
Facilities typically start from around $2–3 million and scale well beyond $100 million for larger contractors, with facility size driven primarily by your net tangible asset position and the peak value of bonds you’ll have on issue at any one time.
The Mistake Most Builders Make When Sizing a Facility
Here’s something we see constantly: builders estimate their facility requirement off total contract value or annual revenue. That’s not how it works.
What matters is your peak simultaneous exposure — the maximum face value of bonds on issue at any single point in time. And that includes old bonds that have expired but haven’t physically been returned by the principal, which still count against your facility limit.
Before approaching a surety provider, build a bond register from your order book: every current security instrument, its face value, its expected release date, plus the bonds your pipeline will require over the next 12 months. Ask for too small a facility and you’ll be back requesting increases mid-year; ask for too much and you’ll pay line fees on capacity you never use.
This is exactly the kind of contract-level analysis Silverback brings to the process. Our director Petara Tanuvasa worked as a contract administrator for major Australian builders before becoming a broker — he’s managed retention, security and defects liability obligations from inside a construction business, which means your bond register gets built the way an estimator and CA would build it, not the way a generalist broker would.
What Does a Surety Bond Cost?
Pricing is set per facility based on your financial strength, sector and bond profile, so published “typical rates” are rarely meaningful. Broadly, you should expect an annual rate applied to bonds on issue, and in many cases the all-in cost compares favourably once you account for what the bank guarantee really costs you: facility fees, plus the opportunity cost of cash locked on deposit or property that could otherwise support borrowing.
The right comparison isn’t fee versus fee — it’s the total cost of each instrument including the capital it ties up. That calculation is different for every builder, and it’s one we work through with clients before recommending either path.
The Application Process
Pre-screen — we check the knockout criteria (ATO arrangements, trust structure, profitability history) before anything is lodged
Information pack — capability statement, group structure chart, three years of financials, year-to-date management accounts, banking facility summary, and an order book report
Expression of Interest — the surety issues indicative terms including facility limit and pricing
Full underwriting and term sheet
Legal documentation — the Deed of Indemnity and director guarantees
Facility live — individual bonds can then usually be drafted and issued same-day through the provider’s online platform
For an established, well-run builder, moving from first conversation to an active facility typically takes four to eight weeks.
So Which Should You Choose?
Keep bank guarantees if your security requirements are small and occasional, your bank facility is unsecured or lightly secured, or your business doesn’t yet meet surety qualification thresholds.
Look seriously at surety if you’re turning over $20 million or more with a solid balance sheet, you have meaningful capital tied up behind guarantees, your bank line is constraining your ability to tender, or you simply want your bank headroom back for growth funding. Many established builders ultimately run both — a surety facility for the bulk of their bonding, with the bank as backup.
Frequently Asked Questions
Are surety bonds accepted by government principals in Australia?
Yes. Surety bonds issued on highly rated insurer paper are accepted by government agencies at federal, state and local level and meet the Treasury guidelines of all state governments. Where a contract strictly requires a bank instrument, bank-fronted bonds are available through major surety providers.
Is a surety bond a type of insurance?
No. Although arranged through insurance channels and backed by insurers or reinsurers, a surety bond is a financial security instrument, not an insurance policy. It pays the beneficiary on demand, and the surety has full recourse to your business — there is no claims assessment process.
What security do I have to provide for a surety facility?
Typically a Deed of Indemnity and Guarantee from the corporate group and personal guarantees from directors. Unlike a bank guarantee facility, there is generally no cash cover, no property mortgage and no General Security Agreement over business assets.
Can I qualify if my business operates through a trust?
Generally not if the main contracting entity is a trust or trustee company — most surety providers exclude trust structures. Speak to your accountant and broker about restructuring options well before you need the facility.
Will an ATO payment arrangement stop me getting a surety facility?
Yes — an active payment arrangement with the ATO, a financier or a supplier is an automatic decline with most providers. Resolve the arrangement before applying.
How long does it take to get a surety bond facility?
Allow four to eight weeks from initial information pack to an active facility. Once established, individual bonds can typically be issued same-day, which is considerably faster than most bank guarantee turnarounds.
Thinking about replacing your bank guarantees? We’ll pre-screen your eligibility, build your bond register, and manage the application end to end. Get a quote or call Petara on 0410 152 835. If your projects also involve design responsibility, see our guide to professional indemnity for NSW builders under the DBP Act.
The information provided is general advice only and has been prepared without taking into account your particular objectives, financial situation or needs. Silverback Insurance Pty Ltd (CAR 1283436 | ABN 74 643 561 746) is a Corporate Authorised Representative of Australian Broker Network Pty Ltd (AFSL 304 139).
Professional Indemnity Insurance for NSW Builders — DBP Act Requirements
Last updated 21 July 2026 — reflects the NSW Government’s latest extension of the PI exemption.
NSW is making professional indemnity insurance mandatory for registered building practitioners under the Design and Building Practitioners Act 2020 (DBP Act). The exemption that has delayed the requirement has now been extended for a third time and currently runs to 30 June 2027 — meaning registered building practitioners must hold adequate PI cover from 1 July 2027, unless a further extension is announced.
If you sign building compliance declarations on class 2 buildings (or mixed-use buildings with a class 2 part) in NSW, this applies to you. Silverback is a specialist construction insurance broker that arranges professional indemnity for builders and design and construct PI across Australia — and we recommend NSW builders get their PI position sorted well before the deadline. Here is why, and how.
What the DBP Act Actually Requires
The DBP Act requires registered building practitioners who provide building compliance declarations for regulated work to be “adequately insured” — holding a professional indemnity policy that, in the practitioner’s reasonable opinion, provides an adequate level of indemnity for the liability they could incur. There is no fixed dollar minimum in the legislation: you are required to form a defensible judgement about what is adequate for your project types, contract values and design exposure. That judgement is precisely where a construction-specialist broker earns their keep — an “adequate” limit for a $2M duplex builder looks nothing like adequate for a practitioner declaring class 2 remedial work.
Registered design practitioners and professional engineers under the Act already carry the PI obligation. The building practitioner exemption is the piece that has been repeatedly deferred — from 2023, then 2025, then 30 June 2026, and now 30 June 2027.
The Deadline Has Moved. Waiting Is Still the Wrong Move.
1. Your contracts already require it. Principals, developers and financiers on class 2 and remedial projects increasingly write PI requirements into contracts regardless of the statutory exemption. If your next tender specifies PI and you have never held it, you are arranging cover under deadline pressure — the most expensive way to buy insurance.
2. Retroactive dates reward early buyers. PI policies cover claims made during the policy period for work done after your retroactive date. Start cover in 2026 and by the time the mandate lands your policy already reaches back over a year of declared work. Wait until mid-2027 and your first policy starts with zero retroactive protection — the work you signed off this year would never be covered.
3. Capacity will tighten near the deadline. When thousands of NSW building practitioners seek PI in the same quarter, underwriters get selective and premiums firm. Builders with claims history, defect exposure or cladding-adjacent work risk landing in the hard to place end of the market at exactly the wrong time.
4. The DBP declaration itself is a design exposure. Signing a compliance declaration that designs comply with the Building Code of Australia is professional judgement — the exact liability PI exists for. Builders who amend designs, coordinate consultants or build under design and construct contracts are already carrying this exposure uninsured if they hold no PI today.
Registered building practitioners providing building compliance declarations on class 2 buildings and mixed-use buildings with a class 2 part
Practitioners on remedial work — the DBP Act’s expansion to repair, alteration and renovation of existing class 3 and 9c buildings commenced 1 July 2026, widening who needs registration (and, from the deadline, PI)
Builders taking design responsibility under D&C contracts — where standard PI wordings often exclude construction activity, and a design and construct PI structure is usually the right answer
Design practitioners and professional engineers — already required to hold PI under the Act now
What “Adequate” PI Looks Like for a NSW Builder
When we assess adequacy with a builder we work through: contract values and the realistic worst-case design claim on your project types; whether your declarations cover your own design input or consultants novated to you; run-off — design claims commonly surface years after completion, so continuity of cover and your retroactive date matter more than the headline premium; exclusions that quietly gut a builder’s PI (construction activity, cladding, waterproofing); and how the PI limit interacts with your contract works and public liability program so claims cannot fall between policies. We document the reasoning — because “in the reasonable opinion of the practitioner” is a test you may one day have to evidence.
How Silverback Helps NSW Builders Get This Right
Silverback’s director spent years inside a leading Melbourne builder as a contract administrator before returning to broking — reading D&C contracts, compliance declarations and consultant deeds from the builder’s side of the table. We arrange builder PI and D&C PI with insurers who understand construction risk, structure retroactive dates and run-off properly, and put the adequacy reasoning in writing. And because we broker the full construction program, your PI is placed to work with your contract works, liability and NSW home warranty arrangements, not alongside them.
NSW Builder PI — Frequently Asked Questions
When does professional indemnity insurance become mandatory for NSW builders?
Under the current DBP Regulation, the exemption for registered building practitioners runs to 30 June 2027, making PI mandatory from 1 July 2027. The deadline has been extended three times, so check the current position with Building Commission NSW — and remember your contracts may require PI much sooner.
Is there a minimum amount of PI cover required?
No. The DBP Act requires cover that is adequate in the practitioner’s reasonable opinion for the liability they could incur. That makes the limit a documented professional judgement — we help builders form and evidence it.
I only build houses (class 1). Does this affect me?
The DBP Act’s PI requirement attaches to regulated work — primarily class 2 buildings, mixed-use buildings with a class 2 part, and now remedial work on class 3 and 9c buildings. Class 1 house builders are generally outside the DBP PI mandate, but PI can still be contractually required and is strongly worth considering where you take on any design responsibility.
Does my public liability or home warranty insurance cover design errors?
No. Public liability responds to third-party injury and property damage; home warranty protects homeowners if you cannot complete or rectify. Neither covers financial loss from defective design or a wrong compliance declaration — that is what professional indemnity is for.
What will PI cost a NSW builder?
Premiums vary with turnover, project types, design involvement, claims history and the limit chosen — there is no meaningful flat figure. Builders with clean histories buying ahead of the deadline will generally see better terms than late buyers in a crowded market. We can give you an indication quickly from your last financials and project profile.
What should I do now?
Get an assessment of your exposure and an indicative price well before 30 June 2027. If cover makes sense now (it usually does once contracts and retroactive dates are considered), you start protected; if not, you have a documented plan for when it will.
Speak to a Construction PI Specialist
Request a quote or call 0410 152 835 — Monday to Friday, 8:00am–5:00pm. Australia-wide, NSW builders a specialty.
General advice only. Legislative requirements and dates are subject to change — confirm the current position with Building Commission NSW before relying on them. This information does not take into account your objectives, financial situation or needs. Silverback Insurance Pty Ltd (CAR 1283436 | ABN 74 643 561 746) is a Corporate Authorised Representative of Australian Broker Network Pty Ltd (AFSL 253131 | ABN 89 062 882 080).
Latent Defects Insurance for Australian Construction
Latent Defects 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:
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:
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:
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
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
Underwriter engagement — we approach the LDI markets at design freeze with the structural design pack and TIS scope, securing indicative terms before construction starts
Premium staging — we manage the 30/70 premium split, the construction-value adjustment at OC, and the certificate of cover at handover
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.
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 simplest 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 often compares favourably 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 Defects Insurance:
Surety Bonds — performance, retention and tender bonds with the same counterparties
General advice only. Premium ranges and product parameters shown are indicative, change between insurers and projects, and do not take into account your objectives, financial situation or needs. Consider the relevant policy documentation before deciding to acquire any insurance product. Silverback Insurance Pty Ltd (CAR 1283436 | ABN 74 643 561 746) is a Corporate Authorised Representative of Australian Broker Network Pty Ltd (AFSL 253131 | ABN 89 062 882 080).
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.
NSW builders: professional indemnity is becoming mandatory for registered building practitioners under the DBP Act. Read our guide to the NSW builder PI requirements and deadline.
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.
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.
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?
In most cases cover is issued through the Home Building Compensation Fund (HBCF) administered by icare. Following NSW scheme reforms, alternative licensed providers such as Credeq can also offer home building compensation cover, so depending on your circumstances there may be more than one pathway. Either way, you can have Silverback assist with your application through an approved Distributor of icare HBCF, 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 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.
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 — Credeq, 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
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
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.
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