Perth Construction Firm Penalised for Insurance Lapse
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.
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.
NSW Fair Trading’s criminal proceedings against Network Strata Services Pty Ltd, trading as Netstrata, have pushed strata governance and insurance transparency back into the national spotlight. The regulator alleges the company and its director and licensee in charge breached statutory obligations connected with strata scheme management in New South Wales, including alleged failures around conflicts of interest, undisclosed financial benefits and information provided to the regulator. - read more
A fresh dispute over the proposed Insurance Brokers Code of Practice has sharpened the focus on transparency for Australian small businesses. Industry figure John Trowbridge has criticised gaps in the draft code, particularly around whether brokers should disclose commissions and other remuneration to all clients, not only those captured by narrower product or client categories. - read more
A recent Australian Financial Complaints Authority decision has put a spotlight on a detail that can be easy to overlook: how an income protection policy defines income. In the case, a policyholder receiving payments under an employer-arranged group income protection policy argued that regular sales commissions should be counted when calculating his pre-disability income. - read more
A fresh dispute over Australia’s insurance broking standards has put transparency back in the spotlight for small business policyholders, including personal trainers, fitness instructors and studio operators. On 17 July 2026, several consumer and strata owner groups withdrew from consultation on the National Insurance Brokers Association’s rewritten Insurance Brokers Code of Practice, arguing that industry self-regulation does not go far enough on conflicted payments and commission disclosure. - read more
Australia’s life insurance sector has welcomed the Federal Government’s updated expectations for APRA and ASIC, a policy signal that could shape how insurers balance consumer protection, affordability and innovation. The new expectations ask the regulators to keep the financial system safe and stable while also supporting competition, productivity and proportionate oversight. For life insurance customers, the practical question is whether that balance leads to clearer products, better service and cover that remains within reach. - read more
Welcome to our comprehensive guide on public liability insurance, an essential safeguard for businesses across Australia. Navigating the complexities of liability insurance can be a daunting task for many business owners, but it’s a critical component of your business protection plan. If incidents such as accidents or property damage occur, liability insurance is the barrier that stands between your business and financial calamity. - read more
Public liability insurance is a type of insurance policy that provides coverage for businesses and individuals against claims made by third parties for injuries or damages sustained while on their property or as a result of their activities. - read more
Public liability insurance is a crucial form of protection for both businesses and individuals, safeguarding them against potential claims for personal injury or property damage that occur as a result of their operations or services. In an increasingly litigious society, having this coverage can mean the difference between staying afloat financially and facing business closure due to unexpected claims. - read more
For Australian business owners, planning for unforeseen disasters is not just prudent; it's an essential aspect of sustaining operations amidst challenges. Recognizing the importance of comprehensive strategies, including robust insurance cover, can make all the difference in business longevity and legal protection. As we navigate the complexities of running a business, it's imperative to have a safeguard against mishaps that could otherwise jeopardize our hard-earned success. - read more
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
Start Here !
Knowledgebase
Claim Adjuster: An insurance professional who investigates and evaluates insurance claims to determine the amount the insurance company should pay.
No comments yet. Be the first to share your thoughts.