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.
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