This insurance is required under the Building Act 1993 (Victoria) pursuant to a Ministerial Order dated 20th April 1995. No other Australian State or Territory requires a similar type of insurance except Tasmania (which introduced essentially similar legislation effective 01/07/04).
The Ministerial Orders require commercial and industrial building contractors to effect a form of structural defects insurance on an ‘annual claims’ made policy basis as a pre-requisite to builder licensing by the Victorian Building Practitioners Board (BPB) or its Tasmanian equivalent.
July 2014 Update
As of July 2014 structural defects insurance is no longer compulsory, however commercial builders continue to face potential liabilities arising from structural building works that can be insured under a structural defects insurance policy.
Your Risk Advisor
McKenzie Ross is an insurance broker specialising in advising company’s on their business risk. We can provide you with a comprehensive review of your business risk and through our extensive reach in the Australian and international insurance market provide a tailored business insurance solution to suit your company’s needs.
Key Benefits Of Using McKenzie Ross
High level assurance that risks are transferred where intended.
A greater understanding of the risks retained in your organisation, some of which may require alternative management methods.
A formal process of risk identification that demonstrates good corporate governance to stakeholders.
Linkage between insurance and your organisation’s overall process for risk management.
Enhanced ability for ‘insurable’ risk to be transferred to insurance markets in the best possible light by demonstrating sophistication in identification and analysis.