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.
Australia’s updated Heavy Vehicle National Law is moving from policy discussion to operational reality, with the new framework scheduled to commence on 1 August 2026 in HVNL-participating states and territories. For transport operators, this is more than a compliance calendar item. It is a signal that safety systems, driver fitness, fatigue controls and record-keeping will carry greater weight when insurers assess risk, price cover and review claims. - read more
A recent Fleet Auto News report has put a timely spotlight on one of the least glamorous but most important parts of fleet management: incident reporting. Many transport businesses still rely on paper forms, email trails and spreadsheets to record vehicle damage, accidents and minor incidents. Those methods may feel familiar, but they can leave operators with delayed reports, incomplete details and data that is difficult to use when a claim, audit or premium review arrives. - read more
Australia’s general insurance sector is edging closer to a major update to the rules that shape how insurers deal with customers, including small business owners and self-employed tradespeople. Financial Services Minister Daniel Mulino has signalled he wants meaningful progress on the review of the General Insurance Code of Practice, with the industry preparing a redrafted version for consultation. - read more
A fresh warning from Australian medical indemnity underwriter Tego has highlighted a risk that many businesses are only beginning to confront: artificial intelligence may not fit neatly inside existing insurance categories. As AI tools become embedded in diagnosis, administration, client advice, document drafting, fraud detection and customer service, the question is no longer simply whether a mistake occurred. It is also who made the decision, who controlled the system and which policy should respond. - read more
Victoria’s owners corporation reform process has put strata insurance commissions back under the microscope, after the state government opted to further examine an expert panel recommendation to ban certain financial benefits paid to owners corporation managers and related entities. - 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
The Australian labour hire industry has seen a significant rise in recent years, and with this growth, comes new and unique risks that companies in this industry must be prepared to navigate. One such risk is the potential for accidents or damages to occur in the workplace, which is where public liability insurance comes in. This article will explore the definition of public liability insurance and why it is so important for labour hire companies in Australia. - 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
Liability insurance is a crucial form of protection that offers coverage against claims resulting from injuries and damage to people or property. Within the bustling landscape of Australian businesses, possessing this form of insurance is key to financial security and continuity. It acts as a safety net, ensuring businesses can manage risks without bearing the full brunt of potentially costly legal claims. - 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
Start Here !
Knowledgebase
Aggregate Limit: The maximum amount an insurer will pay for all covered losses during a policy period.
No comments yet. Be the first to share your thoughts.