NSW REGULATORY GUIDE
NSW Professional Indemnity Requirements for Builders
What NSW builders and building practitioners need to know about mandatory Professional Indemnity insurance under the Design and Building Practitioners Act.
July 2026
Compliance Deadline
Class 2+
Building Types
$1.5M+
Minimum Cover
THE BOTTOM LINE
If you do design work on Class 2 buildings in NSW, you'll need PI insurance from July 2026.
The Design and Building Practitioners Act 2020 is making Professional Indemnity insurance mandatory for registered building practitioners. The time to prepare is now — not when the deadline hits.
DBP ACT OVERVIEW
What's Changing for NSW Builders?
The Design and Building Practitioners Act 2020 (DBP Act) introduced significant reforms to the building industry in NSW. One of the key requirements is mandatory Professional Indemnity insurance for certain building practitioners.
While the Act commenced in July 2020, the insurance requirements are being phased in. From July 2026, registered design practitioners and principal design practitioners will need to hold appropriate PI insurance to maintain their registration.
What this means for builders:
If you do design work on Class 2 buildings (apartments) or certain other building classes in NSW, you'll likely need PI insurance from July 2026. This includes builders who amend designs, provide specifications, or take design responsibility on projects.
WHO'S AFFECTED
Who Needs PI Insurance Under the DBP Act?
The requirements apply to different types of building practitioners. Here's who needs to prepare.
Design Practitioners
Registered design practitioners providing building design work for Class 2 buildings and related classes.
- → Architects providing building design
- → Structural, civil, mechanical, fire safety engineers
- → Building designers
- → Other regulated design practitioners
Principal Design Practitioners
Those who coordinate or manage design work across multiple disciplines on a project.
Builders Doing Design Work
Builders who don't just build to someone else's designs — if you do any design work, you may be affected.
- → Builders who take design responsibility on projects
- → Builders who amend or modify designs
- → Builders who provide specifications as part of their service
COMPLIANCE CRITERIA
What Are the Insurance Requirements?
The regulations specify minimum insurance requirements that practitioners must meet.
Minimum Limit of Indemnity
Typically $1.5M - $2M minimum. Check current regulations for specific amounts as these may be updated.
Approved Policy Types
Professional Indemnity insurance that meets the criteria specified in the DBP Act regulations.
Run-off Requirements
Coverage must extend beyond project completion to cover claims that arise after work is finished.
Important note:
The specific insurance requirements are set out in the regulations under the DBP Act. We recommend checking the current regulations or contacting us for the latest requirements, as these may be updated.
KEY DATES
Timeline and Key Dates
The DBP Act requirements are being phased in over time. Here's the timeline.
DBP Act commenced — registration requirements began rolling out
Phased implementation of various requirements across building classes
PI insurance requirements take effect for registered practitioners
ACTION PLAN
How to Prepare
Don't wait until the deadline. Here's what you should do now to ensure you're ready.
Determine If You're Affected
Consider whether your work falls under the DBP Act. Do you do design work on Class 2 buildings? Are you registered (or need to be) as a design practitioner?
Check Your Current Insurance
If you have Professional Indemnity cover, review whether it meets DBP Act requirements. Not all policies qualify — you may need specific wording or minimum limits.
Talk to a Specialist Broker
The intersection of construction and professional liability is complex. A broker who understands both markets can help you get compliant cover.
Don't Wait Until the Deadline
The closer we get to July 2026, the more demand for compliant PI Insurance. Getting sorted now gives you more options and potentially better rates.
Getting the Right PI Cover
Professional Indemnity insurance for building practitioners needs to be structured correctly to meet DBP Act requirements. We work with specialist underwriters who understand the construction industry and can provide compliant cover.
What your PI policy needs to include:
- ✓ Coverage for professional advice and design-related services
- ✓ Minimum limits that meet regulatory requirements
- ✓ Run-off provisions for claims after project completion
- ✓ Wording that satisfies DBP Act criteria
If you're unsure whether you're affected, or need help finding compliant insurance, call us on 02 9000 1155.
Our team understands both the regulatory landscape and the insurance market for building practitioners.
NSW REQUIREMENTS FAQS
Common Questions About DBP Act Insurance Requirements
Need Help With DBP Act Compliance?
Don't wait until the deadline. Get Professional Indemnity insurance that meets NSW requirements and protects your building business.