Plant And Equipment Insurance Online :: News
SHARE

Share this news item!

NSW Court Decision Escalates Liability Risks for Construction Industry

Developers and Builders Face Full Responsibility for Building Defects

NSW Court Decision Escalates Liability Risks for Construction Industry?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A recent landmark ruling in New South Wales has significantly altered the liability landscape for the construction industry.
The court's decision removes the ability for developers and builders to rely on proportionate liability defences under the Design and Building Practitioners Act 2020 (DBP Act), thereby increasing their exposure to claims related to building defects.

The DBP Act, which came into effect on 1 July 2025, introduced a statutory duty of care aimed at protecting property buyers. This duty is non-delegable, retrospective, and applies to all participants in the construction process, including individual employees and directors. The recent court ruling has clarified that breaches of this statutory duty result in full liability for developers and builders, regardless of whether subcontractors or other parties contributed to the defects.

Previously, developers and builders could apportion blame to subcontractors, thereby limiting their own liability. However, the court's decision establishes that they are now fully responsible for the entire cost of rectifying defects. This shift places the onus on developers and builders to pursue subcontractors through separate legal actions if they seek to recover costs.

For the construction industry, this ruling underscores the importance of comprehensive risk management strategies and robust professional indemnity insurance coverage. Companies must reassess their insurance policies to ensure they are adequately protected against the increased liability risks. Additionally, the ruling highlights the need for meticulous oversight of all aspects of construction projects, as any defects can lead to significant financial and reputational consequences.

In light of these developments, construction professionals are advised to:

  • Review and update their professional indemnity insurance policies to ensure sufficient coverage.
  • Implement stringent quality control measures throughout the construction process.
  • Maintain thorough documentation of all project stages to support potential legal defences.
  • Engage in proactive communication with subcontractors to ensure adherence to quality standards.

By taking these steps, construction companies can better navigate the evolving legal landscape and mitigate the heightened risks associated with building defects.

Published:Monday, 16th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Survey Highlights Alarming Number of Australians Travelling Uninsured
Survey Highlights Alarming Number of Australians Travelling Uninsured
16 Feb 2026: Paige Estritori
Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has unveiled a concerning trend: approximately 14% of Australian travelers embark on international journeys without any form of travel insurance. This statistic has prompted industry leaders to urge Australians to reconsider the importance of securing adequate coverage before traveling abroad. - read more
IAG's Impressive FY25 Performance and Strategic Outlook for FY26
IAG's Impressive FY25 Performance and Strategic Outlook for FY26
16 Feb 2026: Paige Estritori
Insurance Australia Group (IAG) has reported a notable 4.3% increase in gross written premium (GWP), reaching $17.1 billion for the fiscal year 2025. This growth is accompanied by a net profit after tax of $1.36 billion, marking a significant rise from the previous year's $898 million. The company's reported insurance profit stands at $1.74 billion, with a margin of 17.5%, and a return on equity improving to 19.4%. Shareholders are set to benefit from a full-year dividend of 31. - read more
Potential Decrease in Australian Insurance Premiums Amid Global Market Downturn
Potential Decrease in Australian Insurance Premiums Amid Global Market Downturn
16 Feb 2026: Paige Estritori
Recent developments in the global financial markets have sparked discussions about potential benefits for Australian insurance policyholders. A significant sell-off in the insurance sector on Wall Street has led analysts to speculate that Australian insurance premiums could see a reduction in the near future. - read more
NSW Court Decision Escalates Liability Risks for Construction Industry
NSW Court Decision Escalates Liability Risks for Construction Industry
16 Feb 2026: Paige Estritori
A recent landmark ruling in New South Wales has significantly altered the liability landscape for the construction industry. The court's decision removes the ability for developers and builders to rely on proportionate liability defences under the Design and Building Practitioners Act 2020 (DBP Act), thereby increasing their exposure to claims related to building defects. - read more
Rising Public Liability Insurance Premiums Challenge Australian Businesses
Rising Public Liability Insurance Premiums Challenge Australian Businesses
16 Feb 2026: Paige Estritori
The Australian Prudential Regulation Authority (APRA) has released its latest National Claims and Policies Database (NCPD) statistics, revealing a substantial increase in public liability insurance premiums over recent years. According to the data, premiums have risen by 40% since 2015, a rate that surpasses general inflation and places additional financial strain on businesses across the country. - read more


Equipment Insurance Articles

Understanding Plant and Equipment Insurance: A Guide for Small Business Owners
Understanding Plant and Equipment Insurance: A Guide for Small Business Owners
When it comes to running a small business, particularly in sectors like construction, having the right insurance is essential. This is where plant and equipment insurance comes into play. It protects your valuable machinery and tools, allowing you to focus on your projects without the constant worry of potential financial loss. - read more
Unlock Savings: How Bundling Your Plant and Equipment Insurance Can Reduce Premiums
Unlock Savings: How Bundling Your Plant and Equipment Insurance Can Reduce Premiums
Plant and equipment insurance is a specialized type of coverage designed to protect your crucial assets. This insurance typically covers machinery, tools, and various equipment used in the operations of your business. It ensures that, in the event of damage or theft, you won’t face major financial setbacks. - read more
General Liability Insurance vs. Plant and Equipment Insurance: What You Need to Know
General Liability Insurance vs. Plant and Equipment Insurance: What You Need to Know
When it comes to running a business, insurance is one of those things that often gets overlooked. However, understanding the different types of insurance is crucial for protecting your business assets and ensuring your peace of mind. Among the many options available, plant and equipment insurance is vital for businesses that rely on machinery and various tools. - read more
Understanding Owned vs. Hired-In Plant Insurance: A Comprehensive Guide for Australian Businesses
Understanding Owned vs. Hired-In Plant Insurance: A Comprehensive Guide for Australian Businesses
Understanding plant and equipment insurance is crucial for any contractor in Australia. This type of insurance protects your valuable machinery and tools from unforeseen events that could disrupt your business. Without proper coverage, equipment damage or loss can lead to significant financial strain, potentially jeopardizing your operations. - read more
What Paperwork is Necessary When Applying for Plant and Equipment Insurance?
What Paperwork is Necessary When Applying for Plant and Equipment Insurance?
In the bustling world of business, safeguarding your assets is crucial. This is especially true for industries reliant on machinery and equipment. One essential type of coverage for such businesses is plant and equipment insurance. It provides financial protection against risks associated with the loss or damage of your essential tools. - read more


Your free insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Claim:
A formal request made by the policyholder to the insurance company for payment of a loss covered by the insurance policy.