Liability Insurance Australia :: News

Share this news item!

Perth Construction Firm Penalised for Insurance Lapse

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A construction company in Perth has been penalised for initiating building works without securing the legally-required home indemnity insurance, resulting in a $3500 fine and an additional $736 in costs.

In Western Australia, legislation mandates that builders obtain a Home Indemnity Insurance (HII) policy for any residential construction projects exceeding $20,000 prior to receiving payment or commencing with construction.

This insurance offers homeowners a safeguard against financial setbacks should a builder be unable to finish or rectify construction due to reasons such as death, disappearance, financial insolvency, or the revocation of the builder's registration due to financial reasons.

The Armadale Magistrates' Court heard the case where DBD Developments had proceeded with laying the concrete foundation and other preliminary installations for a client's two-storey home in January 2022. However, the requisite HII was not procured until six months later, in July.

Saj Abdoolakhan, the Building Commissioner, highlighted the homeowner's dilemma, noting that two interim payments had been made in the absence of insurance protection.

He stated, "The builder was eligible for this insurance and should have obtained it before commencing work, rather than six months later. This conduct undermines the protections provided by WA’s home building contract laws and the overall integrity of the building approvals process."

This incident resonates amidst ongoing reviews in the construction sector focusing on enhancing compliance and safeguarding consumer interests, as highlighted in the original report from Armadale News.

Instances like these underline the crucial importance of transparency and adherence to legal obligations in the construction industry, particularly in protecting homeowners from potential financial vulnerabilities.

The case serves as a potent reminder for builders across the region to prioritise due diligence and adhere to statutory regulations to maintain trust and uphold industry standards.

The penalty not only enforces existing laws but also signals to other builders the serious repercussions of bypassing essential mandates that protect both builders and clients alike.

Published:Tuesday, 11th Feb 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

What PSC’s Transport Broker Investment Means for Truck Operators

02 Jul 2026: Paige Estritori

PSC Insurance Brokers’ investment in MA Insurance Brokers is a timely reminder that transport insurance in Australia is becoming more specialised, more relationship-driven and more closely tied to claims performance. The deal, announced on 25 June 2026, sees MA begin operating as PSC Transport Insurance Brokers, with founders Barry Mathison and Mariann Illyes remaining involved as managing principals. - read more

Cancer Claim Decision Shows Why Policy Wording Matters

01 Jul 2026: Paige Estritori

A new Australian Financial Complaints Authority decision has underlined a point that is easy to overlook when buying personal insurance: a serious diagnosis does not always mean a policy benefit will be payable. The ruling, reported on 29 June 2026, involved a claimant who sought benefits after being diagnosed with high-grade urothelial carcinoma of the bladder. Although the illness was serious and required treatment, AFCA found the insurer was entitled to rely on the specific wording of the policy. - read more

What Renewal Price Transparency Means for Boat Owners

01 Jul 2026: Paige Estritori

A new review by the General Insurance Code Governance Committee has put renewal pricing transparency back under the spotlight, with findings that matter well beyond home and motor policies. For Australian boat owners, the message is simple: when your policy renewal arrives, the payment frequency can be just as important as the headline premium. - read more

What IAG’s Modular Shelter Move Means for SMEs

01 Jul 2026: Paige Estritori

IAG’s latest investment through Firemark Ventures is a useful signal for Australian business owners: disaster recovery is no longer just about paying claims after the event. It is increasingly about helping people and enterprises stay operational, connected and on-site while rebuilding happens around them. - read more

Life Insurance Code Review Puts Mental Health and Claims Fairness in Focus

01 Jul 2026: Paige Estritori

Australia’s life insurance sector is facing another important reform moment after the independent review of the Life Insurance Code of Practice released its final report on 30 June 2026. The report, led by former senior regulator Peter Kell, makes 85 recommendations aimed at improving how life insurers communicate, design products, handle claims and support customers who may be vulnerable. - read more

Click for more Insurance News

Business Insurance Articles

Understanding Liability Insurance: A Must-Read for Australian Business Owners

As a business owner in Australia, navigating the complexities of insurance is crucial to safeguard your enterprise against unforeseen events. Liability insurance emerges as a cornerstone of a sound risk management plan, protecting you financially when held responsible for accidents, injuries or negligence. Its importance cannot be understated, as it serves not only to defend your business assets but also to ensure peace of mind in a climate of continually evolving liabilities. - read more

Public Liability Insurance for Events: What Organizers Need to Consider

Public liability insurance is a type of coverage designed to protect businesses and individuals from the financial fallout associated with claims for injury or damage caused to third parties. It is particularly crucial for event organizers, who are responsible for ensuring the safety and security of attendees, vendors, and participants. - read more

Reducing Your Risks: Public Liability Coverage Tips for Trade Professionals

For tradesmen and trade professionals, venturing into the world of business comes with its set of challenges and risks. Among the myriad of precautions to consider, one critical safeguard stands out for its ability to protect both the tradesperson and their clients: Public Liability Insurance. This form of coverage is not just a safety net; it is a cornerstone of a responsible business practice within the trade industry. - read more

Understanding the Key Factors Influencing Your Liability Insurance Premiums

Liability insurance is a form of coverage that protects businesses against claims resulting from injuries and damage to people or property. It provides crucial peace of mind, ensuring that your business is shielded from potentially devastating financial losses due to lawsuits or claims against it. - read more

How Public Liability Insurance Can Save Your Business During a Crisis

Public liability insurance is designed to protect your business from financial loss if you are found liable for causing injury or property damage to a third party. This type of insurance covers legal costs and any compensation claims that might arise from accidents or incidents involving your business operations. - read more

Start Here !

Knowledgebase

Insurance Policy Excess:
The amount you will have to contribute when you make a claim.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.

Perth Construction Firm Penalised for Insurance Lapse

Perth Construction Firm Penalised for Insurance Lapse

Share this news item:

Start here!