Liability Insurance Australia :: News
SHARE

Share this news item!

Perth Construction Firm Penalised for Insurance Lapse

Perth Construction Firm Penalised for Insurance Lapse

Perth Construction Firm Penalised for Insurance Lapse?w=400

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

Sign in with Google to rate

0 Comments

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

Insurance News

CHU Introduces Cyber Coverage in Residential Strata Insurance
CHU Introduces Cyber Coverage in Residential Strata Insurance
14 May 2026: Paige Estritori
In response to the escalating cyber threats targeting strata communities, CHU Underwriting Agencies has expanded its residential strata insurance policies to include cyber protection. This enhancement provides coverage of up to $50,000 for losses resulting from social engineering fraud, a prevalent form of cybercrime where perpetrators impersonate trusted contacts to manipulate payment instructions. - read more
CHU Expands Strata Insurance Capacity to Support Larger Developments
CHU Expands Strata Insurance Capacity to Support Larger Developments
14 May 2026: Paige Estritori
CHU Underwriting Agencies has announced a significant increase in its single risk capacity, raising the limit to $690 million from the previous $300 million. This substantial enhancement enables CHU to better support larger residential and commercial strata developments across Australia. - read more
CHU's 2025 Report Shows Stability in Strata Insurance Premiums Amid Climate and Regulatory Shifts
CHU's 2025 Report Shows Stability in Strata Insurance Premiums Amid Climate and Regulatory Shifts
14 May 2026: Paige Estritori
CHU, Australia's leading strata insurance underwriting agency, has released its 2025 State of the Strata Market report, providing a comprehensive analysis of the current state of the industry. The report offers valuable insights into premium movements, the impact of weather events, regulatory developments, and emerging risks affecting strata insurance. - read more
ACCC Deepens Investigation into IAG's Proposed RAC Insurance Acquisition
ACCC Deepens Investigation into IAG's Proposed RAC Insurance Acquisition
14 May 2026: Paige Estritori
The Australian Competition and Consumer Commission (ACCC) has intensified its examination of Insurance Australia Group's (IAG) proposed acquisition of RAC Insurance, moving the process into a Phase 2 review. This decision underscores the regulator's concerns about the potential impact on competition within Western Australia's insurance market. - read more
Premium Affordability Emerges as Leading Concern for Australian Insurers in 2026
Premium Affordability Emerges as Leading Concern for Australian Insurers in 2026
14 May 2026: Paige Estritori
As 2026 unfolds, Australian insurers have identified premium affordability as the foremost risk facing the industry. This shift in priority reflects the mounting pressures from inflation, escalating climate-related losses, and stringent regulatory requirements. - read more
Click for more Insurance News


Business Insurance Articles

5 Tips for Reducing Your Liability Insurance Premiums in Australia
5 Tips for Reducing Your Liability Insurance Premiums in Australia
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
Common Myths About Public Liability Insurance Debunked
Common Myths About Public Liability Insurance Debunked
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
Insurance Essentials: Protecting Your Small Business with Public Liability Coverage
Insurance Essentials: Protecting Your Small Business with Public Liability Coverage
Running a small business in Australia comes with its own set of challenges and risks. One crucial aspect that should never be overlooked is insurance, particularly public liability insurance. The reason is simple: it offers essential protection against claims of property damage or personal injury caused by your business operations. - read more
Understanding the Role of Public Liability Insurance in Business Disaster Planning
Understanding the Role of Public Liability Insurance in Business Disaster Planning
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
Is Your Business Fully Protected? Top Signs It’s Time to Renew Your Liability Insurance
Is Your Business Fully Protected? Top Signs It’s Time to Renew Your Liability Insurance
As a business owner, one of your top priorities is safeguarding your enterprise from unforeseen events that could lead to financial liabilities. Liability insurance is the cornerstone of this protection, offering a safety net against claims that could otherwise derail your business's financial stability. However, it's not just about having insurance; it's crucial to ensure your coverage is current and adequate for your evolving business requirements. - read more


Start Here !

Start here!

Cover Amount:
Postcode:
All quotes are provided obligation-free by a participating broker from our national referral partner network. We respect your Privacy.

Knowledgebase
Actuary:
A professional who analyzes the financial costs of risk and uncertainty using mathematics, statistics, and financial theory.



Quick Links: | Liability Insurance Australia | Public Liability Insurance | Professional Indemnity Insurance | Business Liability Cover | Small Business Liability Insurance | Liability Insurance For Trades | Liability Insurance Quote | Corporate Liability Insurance | Liability Insurance For Professionals | Best Liability Insurance Australia
| HOME | RATES | CALCULATORS | NEWS | ARTICLES | ABOUT | CONTACT | PRIVACY | BROKERS | AFFILIATES | SITEMAP |
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.
powered by Financial Services Online | Copyright Clark Family Pty Ltd A.C.N. 010 281 008 - all rights reserved
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.