Is Professional Indemnity Getting Easier to Arrange for NSW Building Practitioners?
It's starting to. This profession was genuinely hard to insure through the cladding years. New broker-backed capacity has since entered the market, built specifically for the practitioners about to buy it for the first time.
By Jack O'Hagan, Co-Founder & Insurance Broker
Published 30 October 2026 · 4 min read
In this guide
- Has this profession always been hard to insure?
- What’s changed since then?
- Why would an insurer build a product for a profession this difficult?
- Does new capacity mean every practitioner can get cover easily now?
- Why does broker access matter more here than for a lower-risk profession?
- Key Takeaways
- Footnotes
Professional indemnity for a registered building practitioner has been hard to arrange through the cladding years. That’s starting to change. New, broker-backed capacity has entered the market built specifically for this profession, sitting alongside whatever public liability a practitioner already carries, aimed squarely at the wave of practitioners who are about to need professional indemnity for the first time.
95%+ loss ratios
what pushed insurers out of this profession through the cladding years
Purpose-built capacity
dedicated products have now entered the market, built for this exact profession
A known wave of buyers
a large first-time cohort is why insurers are building for this profession now
Has this profession always been hard to insure?
For several years, yes. Cladding-related claims pushed loss ratios in this profession above 95 percent.1 At least one major insurer stopped writing new building surveyor policies altogether in 2019. Several others introduced cladding-related exclusions rather than leave the profession outright. That history is still priced into the market today, which is exactly why what’s happened since is worth paying attention to.
A profession insurers pull back from doesn't stay abandoned forever. It gets interesting again the moment someone builds a product specifically for it.
What’s changed since then?
Dedicated capacity has entered the market, built specifically for registered building practitioners rather than left to whatever space happens to be free on a general professional indemnity panel. A broker-backed product on Chubb and DUAL paper is one real example, launched ahead of the state’s mandatory insurance requirement for this exact profession.2 That’s a genuinely different proposition to hoping a generalist insurer still has appetite left over from before the cladding years.
That mandatory start date has itself moved more than once. Our guide to the builder versus building practitioner question covers exactly where that timeline stands today, so it’s worth reading alongside this one rather than relying on an earlier announcement.
Why would an insurer build a product for a profession this difficult?
Because a known, upcoming wave of compulsory buyers is a far easier thing to price for than open-ended market risk. Specialist underwriters have pointed to a large cohort of building practitioners who’ve never held professional indemnity before as the reason.3 A predictable segment of first-time buyers is a different proposition entirely to the open-ended appetite that defined this profession through the cladding crisis. That difference is exactly what’s drawn new capacity in.
Does new capacity mean every practitioner can get cover easily now?
No, and this is the part worth being realistic about. New capacity existing in the market is one thing. Every individual practitioner being an easy risk to place is another. Claims history, the specific type of building work involved and whether cladding-related work is part of it still decide how any one application gets assessed, no matter how many new products have entered the space.
Why does broker access matter more here than for a lower-risk profession?
Because the practitioners who most need cover, the ones who’ve never held it before, are also the least likely to know which insurers are writing this business right now. A general panel that pulled back years ago and never returned won’t surface that option on its own. Specialist market access is what closes that gap, connecting a genuine first-time buyer to the capacity that’s opened up for them.
Key Takeaways
- Professional indemnity for building practitioners has been hard to arrange since the cladding years pushed loss ratios above 95 percent.
- New, purpose-built capacity has since entered the market, rather than practitioners relying on leftover appetite from a general panel.
- That capacity exists because insurers can see a known, upcoming wave of first-time buyers coming. The underlying risk itself hasn't suddenly become easier.
- New capacity existing doesn't mean every application is straightforward. Claims history and the specific work involved still drive how it's assessed.
- Specialist market access matters most for practitioners who've never held this cover before, since they're the least likely to know where the new capacity sits.
The information in this article is general in nature and does not constitute legal, financial or insurance advice. Please speak with a qualified adviser about your specific circumstances.
Footnotes
-
PI pullout chips away at building industry’s foundations, insuranceNEWS.com.au ↩
-
Mandatory Professional Indemnity for NSW Builders, BizCover ↩
-
D&C policies and the DBP Act: closing the gap before July, Insurance Business Australia ↩
Not sure how this applies to your situation?
Frequently asked questions
Has professional indemnity for building practitioners always been hard to get?
For several years, yes. Cladding-related claims pushed loss ratios in this profession above 95 percent. At least one major insurer stopped writing new building surveyor policies altogether in 2019. A lot of current pricing and appetite still carries that history.
What's changed in the market since then?
Dedicated capacity has entered the market specifically for registered building practitioners, instead of practitioners competing for whatever space is left on a general professional indemnity panel. A broker-backed product on Chubb and DUAL paper is one real example, launched ahead of the state's mandatory insurance requirement for this profession.
Why would an insurer build a dedicated product for a profession that's historically been this difficult?
Because a known, upcoming wave of compulsory buyers is a far easier thing to price for than open-ended market risk. Specialist underwriters have pointed to a large cohort of building practitioners who've never held professional indemnity before as the reason, a predictable new segment rather than an unpredictable one.
Does new capacity mean every building practitioner can get cover easily now?
No. New capacity existing in the market is one thing. Every individual practitioner being an easy risk to place is another. Claims history, the specific type of building work involved and whether cladding-related work is involved still decide how any one application gets assessed.
Why does broker access matter more for this profession than for a lower-risk one?
Because the practitioners who most need cover, the ones who've never held it before, are also the least likely to know which insurers are writing this business right now. A general panel that pulled back years ago and never returned won't surface that option on its own. Specialist access is what connects a first-time buyer to the capacity that's opened up for them.
Is the mandatory insurance requirement for NSW building practitioners in effect yet?
It's been deferred more than once since it was first legislated, so check the current date directly rather than relying on an earlier announcement. Our guide on the difference between a builder and a registered building practitioner covers where that timeline currently stands.
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Where this guide fits
Business Insurance
This guide sits alongside our Business Insurance cover pages.
Browse Business InsuranceWritten by
Jack O'Hagan
Co-Founder & Insurance Broker
Jack spent 6+ years across law, finance and insurance, seeing the impact insurance can have on the growth of a business. With a strong focus on advocacy, he firmly believes insurance broking does not stop after the policy has been placed. It continues when a claim is lodged. He co-founded Cipher Insurance to help Australian businesses get the right broker experience.