Perth Construction Firm Penalised for Insurance Lapse
Perth Construction Firm Penalised for Insurance Lapse
0
⚠️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 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Australian businesses are currently grappling with a complex landscape of escalating insurance risks, driven by factors such as increased litigation, rapid technological advancements, supply chain disruptions, catastrophic events, and geopolitical tensions. These challenges necessitate a proactive approach to risk management and insurance coverage. - read more
In July 2025, Farmsafe Australia launched the 'Second Chances - Who Knows How Many You'll Get' campaign, aiming to transform near misses on farms into learning opportunities to prevent future accidents. This initiative underscores the critical importance of recognising and addressing close calls in agricultural settings. - read more
In October 2025, WFI Insurance unveiled its annual farm accident insights as part of Farmsafe Australia's 2025 Safer Farms Report. The findings paint a stark picture of the challenges facing Australian agriculture, with 2024 recording 72 farm-related deaths-the highest in over two decades. - read more
The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of insurers' complaint handling processes, uncovering significant deficiencies that fail to meet regulatory obligations. The findings indicate that insurers are not adequately identifying and addressing customer complaints, with one in six complaints going unrecognized. Additionally, systemic issues are often overlooked, communication timeframes are missed, and existing systems fail to record outcomes such as compensation payments. - read more
Following a significant 12% decline in commercial insurance rates during the fourth quarter of 2025, industry experts anticipate that this downward trend will persist throughout 2026. The Australia-Pacific region has been at the forefront of this global decrease, with the recent drop marking the steepest since early 2024. - read more
Today, we're diving into the world of public liability insurance, a crucial topic for anyone running a small business or working as a self-employed professional in Australia. - read more
Running a business comes with inherent financial risks. Whether you own a small café or a large construction company, unforeseen incidents can lead to significant financial losses. - 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
Public liability insurance is a crucial aspect of managing risk for businesses in Australia. This type of insurance covers costs associated with claims made against a business for property damage or personal injury caused during business operations. - read more
Welcome to our comprehensive guide on public liability insurance. If you run a business, you've probably heard this term thrown around quite often. But what exactly is public liability insurance? - read more
Start Here !
Knowledgebase
Public Liability Insurance: Insurance which provides protection against liability to third parties.
