Professional indemnity insurance for building industry
Professional indemnity insurance (PII) covers a building certifier for liability arising from negligent or mistaken professional advice or services and helps protect consumers by providing a source of compensation where loss or damage results from the certifier's professional conduct.
For an individual to perform private certification functions, a building certifier must hold the appropriate endorsement under the Building Act 1975 (the Act) and meet the eligibility requirements prescribed in the Building Regulation 2021 (BR 2021).
Prior to August 2019, private building certifiers were required to hold professional indemnity insurance without exclusions as an eligibility requirement for certification functions.
Following significant cladding fire incidents and resulting changes in the professional indemnity insurance market, some insurers introduced cladding and other building product exclusions to policies. This affected the availability of exclusion-free cover for private building certifiers.
Since August 2019, the Regulation has provided a temporary exemption allowing private building certifiers to perform certification functions while holding professional indemnity insurance with cladding exclusions. Amendments made by the Building and Other Legislation Amendment Regulation 2025 extend the exemption until 30 June 2027.
This exemption provides certainty about professional indemnity insurance requirements for certifiers and supports the continued provision of private building certification services across Queensland until 30 June 2027.