Building Indemnity Insurance (Bill) – Important Facts

Consumer and Business Services may request as part of any licencing application “Certificate of Eligibility” (Building Indemnity) or Accountant Letter for Net Tangible position.

You may meet and provide the Accountant letter however, you may still need to obtain BII as required by law for Residential Projects.

Will you be doing Residential Works, with a contract value of $12,000 or more and council approval is required? If yes, MBAIS can assist with your application for this Home Owner Protection product.

When applying for Building Indemnity Insurance Review of Limits or business structure amendments there are numerous documents required to support your request. Proof of assets, financial history and more!

MBAIS have developed a Document Checklist based on their experience with clients and Insurer to guarantee you meet these requirements. A dedicated staff member screens your submission to certify we have as much base information to help you get approval.

Once approved and any additional questions have been answered the Insurer will issue the Certificate of Eligibility. MBAIS will be in contact and issue your Job Specific Application Forms and Rate Card so you can quote jobs. It is important to note that if CBS is still processing your Builder’s Licence application, your facility will be placed on hold and job applications cannot be processed until the licence is issued. Once full licence has been approved, jobs can be lodged and certificates released.

Factors that impact your Building Indemnity

1. Have you had a recent change to your business structure? Sole Trader to Partnership/Company or Trust? If yes, have you advised your Building Indemnity Insurance Broker and lodged a Change of Entity application? You may need to upgrade or change your licence to make sure these details are covered. You will also need to review your insurance.

2. Will you be trading through a Trust? If so, please speak with your Broker about how this affects you. Your accountant may not be aware that this can and will impact your BII. You may need to alter your licence and undertake a review of your Building Indemnity Insurance including a review of all your financial information, your pipeline of work and references.

3. How do you change the Annual Limit when your business grows beyond that amount? You will need to undertake a full review of your Building Indemnity Insurance.

4. Did you know that you should have applied for, paid and received your Job Specific Certificate before commencing on Site? You may not need a certificate for a particular job but can apply for a retrospective application – requiring details as to why it wasn’t undertaken before work commenced.

5. Are you aware of the implications involved with not taking out the cover? This may involve applying for retrospective coverage, with the risk the insurer may decline the application.