Verify A Builders Insurance Coverage

Verify your builder

How to Verify a Builder's Insurance Coverage

Insurance paperwork protects both you and the builder if something goes wrong. Rather than assume it is in place, ask for it and read it. Every reputable builder is used to this request and can produce documents in a day or two.

Public source: CBS SA: consumer guidance

Section 1

What to ask for

Ask the builder for a Certificate of Currency for each policy they carry. A Certificate of Currency is a one-page summary produced by the insurer confirming the policy is active for the specified period. It is not the full policy document. Reputable builders produce these on request without hesitation.

Section 2

The policies to look for

Public liability insurance (covers injury and damage to third parties during works). Contract works or construction insurance (covers the build itself against fire, storm, theft during construction). Workers compensation (covers the builder's workers if injured on your site). Building Indemnity Insurance (specific policy relevant to South Australian residential builds).

Section 3

What to check on each Certificate

The insured party name matches the licenced entity you already verified with CBS. The policy is current for the whole expected build window. The sum insured is meaningful (public liability is typically at least a substantial multi-million figure appropriate to the project). The insurer is a recognised Australian general insurer.

Section 4

Building Indemnity Insurance

This is the SA-specific residential building insurance. It protects the homeowner if the builder cannot complete the work or fails to fix defects due to death, disappearance, or insolvency. Ask the builder to confirm they will provide it for your project before work starts, and get the Certificate of Currency once it is issued.

Section 5

Red-flag responses to the request

"You do not need to see it, we are covered" is not an acceptable answer. Neither is "we will send it later." Neither is a photocopied Certificate that is more than a year old. A builder who cannot or will not produce current Certificates is one you should walk away from.

Section 6

What to do with the certificates

Keep them with your project file. If the build spans a renewal window, ask for the fresh certificate at renewal time. Most insurers will happily reissue for a client-of-the-insured on request.

This is general due-diligence guidance drawn from public sources and industry practice. It is not legal, financial, or building advice. Always confirm current licence and insurance requirements directly with Consumer and Business Services SA, and consult a qualified professional for advice specific to your situation.

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