Protecting Licensed Building Practitioners from certain professional errors, including license complaints.
What It Covers
Complaints to the LBP Board
Including defence costs and fines
Allegations of negligent supervision of non-LBPs
Mistakes in Records of Work
Liability arising from errors or omissions in Records of Work documentation
What Is It?
According to the registrar of the LBP scheme, 20% of complaints to the Building Practitioners Board are related to Records of Work. Most commonly this is because the LBP has withheld them due to a dispute or non-payment, which you are not allowed to do.
Is your insurance adequate if a complaint is made against you, or you’re accused of making a mistake in your documentation?
Especially now that LBPs are subject to a Code of Ethics, a breach of which is also grounds for someone to complain to the board.
LBP Professional Indemnity insurance typically covers fines imposed by the Building Practitioners Board, including costs & expenses incurred in the investigation and defence of the complaint. It also covers claims of compensation related to errors or omissions in the signing of Records of Work that result in a financial loss to a third party. Lastly, it covers allegations of negligent supervision of non-LBPs, provided that the insured was engaged only in a supervisory role.
This short video explains the key points of LBP insurance.
Speak to an Adviser:
0800 284 584
SUPERVISION AND SIGN OFF
SIGNING OFF RECORDS OF WORK
Policy Key Facts
This is meant as a summary of the most important items in the policy. For a complete understanding of what it does and doesn’t cover you should always read the full policy wording.
- Defence costs and resultant fines from a complaint to the LBP disciplinary board
- Liability for financial losses suffered as a result of errors and omissions in Record of Work documentation
- Liability for financial losses suffered as a result of supervision of non-LBPs performing restricted building work
WHAT'S NOT COVERED
- the cost to fix defective workmanship
- performing or supervising work outside your license class
OTHER THINGS YOU SHOULD KNOW
- an excess is payable for each claim
- for the supervision cover to apply you must be engaged in a supervision-only role by the same entity that engaged the non-LBPs (the supervision of your own employees is not covered)
- this is a “claims made” type of policy. This means you must have a policy in place at the time a claim is made against you, and the event giving rise to the claim must have occurred since you first took out LBP cover. Claims related to any event that happened before the retroactive date shown on the policy are not covered
How Much Does It Cost?
The legal cost of defending a complaint to the Building Practitioners Board, as well as the compensation awarded for making a mistake in your Records of Work documentation could easily run to thousands of dollars.
Premiums start from as low as $200+GST per year, depending on amount of cover you want.
Terms & Conditions
View our current policy wordings. Existing policyholders may be on a previous version. Specific endorsements to this wording will be individually noted on your policy schedule. In some cases we may recommend an alternative insurer, if so we’ll send you their policy terms & conditions.