New Requirements from 1 July 2025 Under the Design and Building Practitioners Act 2020, all registered practitioners are required to hold professional indemnity insurance for the work they carry out.
The mandatory insurance requirement for building practitioners will commence on July 1 2025.
This was a 12-month extension to the current exemption period, which was initially slated for July 1 2024. The extension acknowledges the ongoing challenges in the availability of suitable insurance products for building practitioners. It allowed more time for insurers and the industry to develop compliant professional indemnity options to support practitioners in meeting their future obligations.
Until the requirement takes effect, building practitioners are not legally required to hold professional indemnity insurance under the DBP Act. However, this change does not remove other existing obligations, such as those under the Home Building Compensation (HBC) scheme, which continues to apply where required.
Importantly, NSW consumers remain protected. Statutory warranties under the Home Building Act 1989 continue to apply in cases of defective or incomplete work, offering key safeguards even while the DBP insurance requirement is on hold.
Practitioners should use this time to assess their current insurance arrangements, consult with providers, and begin preparing for compliance ahead of the July 1 2025 deadline. Further updates or guidance on approved insurance products will be provided as they become available.