Professional indemnity insurance

PI for certifiers

A building certifier seeking endorsement as a private certifier must hold PI insurance.

Minimum standards for PI

A building certifier seeking endorsement as a private certifier must providing a certified copy of the certificate of currency with:

• a minimum limit of indemnity of $ 1 million for any 1 claim and a total during any 1 period of insurance that may arise from the performance of private certifying functions
• in addition to the limit of indemnity for costs and expenses incurred with the consent of the insurer of defending or settling a claim
• indemnity for breaches of professional duty as a private certifier arising from an act, error or omission of the private certifier after the day the certifier first became a private certifier
• at least 1 automatic reinstatement of indemnity
• indemnity for negligent performance of a building certifying function (other than for claims for fraudulent or illegal acts or omissions)
• if the private certifying functions are performed as an employee—indemnity to former principals, partners and directors of the employer who were, but are no longer, private certifiers.

Employer or company policy

If you are an employee or member of a corporation, or employee of an individual or public sector entity who holds the PI insurance policy, you must provide the QBCC with evidence of the relationship. You must also provide us with both of the following:

• certified copy of your employer’s or company’s professional indemnity insurance policy, and
• completed PI declaration for certifiers (PDF, 53.8KB) outlining the details of your employers policy.

PI exemptions for cladding cover

The previous professional indemnity exemption timeframe has now been extended. Until 30 June 2025, private certifiers do not require professional indemnity insurance coverage for performing private certifying functions directly related to external cladding, or the use of external cladding, that does not comply with any of the following: 

• an Act or other law of the Commonwealth or a State; 
• an Australian Standard; 
• the BCA. 

External cladding means cladding or a cladding system: 

• forming part of, or attached or applied to, an external wall or other external part of a building other than a roof; and 
• made, in whole or in part, of composite material. 

Where a certifier obtains an exempted licence and holds PI insurance with a cladding related exclusion prior to 30 June 2025, their exempted licence will still be valid and they will be able to continue to operate until their exempted licence expires. 

PI for other classes

Only holders of some licence classes need PI insurance. This will need to be demonstrated if you are applying for or renewing a licence.

Do need PI

You will need PI insurance to hold a QBCC contractor licensee in one or more of the following classes:

• builder—project management services
• building designer
• fire protection (certify and design classes)
• completed residential building inspector
• hydraulic services design
• site classifier
• termite management—chemical.

Don't need PI

You do not need PI insurance if you are a QBCC:

• nominee supervisor
• site supervisor
• occupational licensee.

Once you become licensed, you need to make sure your PI insurance remains active.

Minimum standards for PI

State law sets out minimum standards and terms for PI insurance.

You can refer to the Queensland Building and Construction Commission (Minimum Financial Requirements) Regulation 2018 to find out the minimum:

• amount of PI insurance required for each licence class (detailed in Schedule 2, Section 17J)
• standards for what the insurance must cover (detailed in Section 17K).

Acceptable evidence of cover

Relevant licensees must demonstrate current PI insurance by providing: 

• a copy of the certificate of currency for the insurance
• a statutory declaration (PDF, 43.2KB) verifying your insurance complies with the minimum standard of PI insurance
• if the insurance policy for the professional is arranged by an insurance broker—a receipt given by the broker for payment of the insurance. 

If your professional indemnity insurance does not comply with the minimum standard of PI insurance, you must submit to us a declaration stating that your cover does not comply and ask for an exemption. 

Exemptions from holding PI insurance

We may grant you an exemption from taking out PI insurance if you can prove to us that either:

• PI is not available to you in the marketplace
• it is economically unviable for you to obtain PI, when taking into consideration of both:
  • the cost of the insurance
  • the previous and expected future turnover of the relevant business or part of the business.

How to apply for a PI exemption

Download and complete the form:

PI insurance—exemption application (PDF, 83.4KB)

Lodge the form and documents evidencing you qualify:

• by mail
• in person at a QBCC service centre
• via myQBCC (NOTE: you need to be logged in to upload files to the enquiry form).

Financial reporting exemptions for some classes with PI

Holding PI insurance may make you exempt from providing financial information for some licence classes when you:

• apply for a licence
• complete your annual reporting requirements.

Classes eligible for MFR exemption

• builder—project management services
• building design—low rise
• building design—medium rise
• building design—open
• hydraulic services design classes
• site classifier classes
• fire protection—water-based fire system stream—design
• fire protection—electrical—design—fire alarm systems.

We can waive the requirement to provide detailed financial information if:

• you only hold (or are applying for) one or more licences in a class that requires PI insurance
• you have a current insurance policy
• you have given us the details of your current policy.

This means you must give us an updated copy of your PI insurance whenever you renew it.

If you do not hold current PI insurance or have not provided a copy of the policy to the QBCC you will need to provide the required financial information for your financial category.

How to apply for a financial reporting exemption

Download and complete the form:

Estimated maximum revenue declaration (PDF, 88.7KB)

Lodge the form and documents evidencing you qualify:

• by mail
• in person at a QBCC service centre
• via myQBCC (NOTE: you need to be logged in to upload files to the enquiry form).