How to Get the Best Builders Insurance Quote in Australia

A comprehensive guide to understanding builders insurance in Australia, including what it covers, how to compare quotes, and tips for reducing premiums. 

🔍 Why Builders Insurance Matters 

Whether you’re a sole trader working on small renovations or a licensed builder handling multi-million dollar developments, the risks on a construction site are very real—accidents, injuries, theft, weather damage, and legal claims are all part of the territory. 

Builders insurance is your safety net. It ensures that when things go wrong—and they sometimes do—you’re financially protected. Without it, a single incident could result in thousands (or hundreds of thousands) in losses, not to mention legal issues and delays. 

Having the right insurance can also be a requirement for obtaining licenses, winning tenders, and maintaining a solid reputation with clients. 

🛡️ What Is Builders Insurance? 

Builders insurance isn’t one-size-fits-all. It’s actually a bundle of policies that protect you from different risks associated with construction work. 

Common Types of Builders Insurance: 

• Public Liability Insurance 
  If a member of the public is injured on your site or their property is damaged due to your work, this insurance covers legal and compensation costs. This is usually mandatory on job sites. 

• Contract Works Insurance 
  Also known as Construction Works Insurance, this covers damage to the building project itself—caused by fire, storm, vandalism, or theft—while under construction. 

• Tools and Equipment Insurance 
  This protects your valuable tools and gear from theft, damage, or loss. Given how common tool theft is on building sites in Australia, this is a must-have. 

• Management Liability Insurance 

Protection to defend against legal claims, fraud and other liabilities your business may face, including workcover investigations. 

• Workers Compensation Insurance 
  If you employ people, this is legally required in all states and covers their wages and medical costs if they’re injured at work. 

• Builders Warranty Insurance (where applicable by state) 
  Covers homeowners if you (the builder) die, become insolvent, or disappear before finishing the project. It’s mandatory for residential builders in some states. 

Each policy type serves a different purpose, and many builders carry multiple types at once, depending on the size and scope of their operations. 

📦 What Does It Cover? 

Your policy coverage will depend on what you purchase, but in general, builders insurance can include: 

• Project damage from natural disasters, fire, or vandalism 

• Theft of building materials, tools, or equipment 

• Third-party injuries or claims—someone gets hurt on-site or property is damaged 

• Employee accidents and compensation for medical bills and time off work 

• Legal costs from being sued or facing regulatory action 

The goal is to ensure your business can survive and recover from financial losses that would otherwise be devastating. 

💰 How Much Does Builders Insurance Cost? 

There’s no fixed price for builders insurance—it’s calculated based on your specific business circumstances. Factors include: 

• The size of your business – Sole traders generally pay less than companies with a large workforce. 

• Project types and values – Riskier or more expensive builds typically mean higher premiums. 

• Your location – Some areas are considered higher risk for theft, storm damage, or legal claims. 

• Number of employees – More workers = more risk and higher Workers Comp costs. 

• Your claims history – A clean record may result in discounts. 

• The level of coverage – Higher limits and more add-ons increase cost. 

👉 As a benchmark: 

• A sole trader might pay $5,000–$10,000 per year for basic cover. 

• A mid-sized construction business might pay $50,000–$100,000+ annually, depending on project size and scope. 

📊 How to Compare Quotes (The Smart Way) 

Here’s how to make sure you’re not just getting the cheapest quote—but the best value. 

1. Know What You Need 

Make a list of what your business does day-to-day. Do you employ staff? Do you subcontract? What kind of projects do you take on? This will determine what cover you legally need and what optional extras make sense. 

2. Get Multiple Quotes 

Never settle on the first quote. Use a licensed insurance broker who specializes in the construction sector. They’ll understand the nuances of your work. 

3. Check Inclusions & Exclusions 

It’s easy to miss this. Two policies might look similar in price but one might not cover some basics you expect. Always read the Product Disclosure Statement (PDS). Your broker should be providing guidance and expertise. 

4. Compare Policy Limits & Excess 

A policy with a low premium might have low limits or a many exclusions. Make sure your cover will actually protect you in worst-case scenarios. 

5. Research the Insurer 

Read reviews. Look up claim response times. A cheap insurer who delays or denies claims is worse than no insurance at all. 

💡 Tips to Lower Your Premium 

Want to keep costs down without cutting corners? Try these strategies: 

• Bundle policies: Get public liability, tools, and contract works from the same provider. You could save significant amount of premium. 

• Increase your excess: Opting for a higher excess can significantly reduce your premiums—but ensure it’s affordable. 

• Improve site security: Lockable storage, cameras, and on-site lighting reduce risk and can lead to discounts. 

• Stay claims-free: A clean record can unlock no-claim bonuses or loyalty discounts. 

• Pay annually: Some insurers charge extra for monthly instalments. 

• Use a broker: They may have access to wholesale rates and special deals not available to the public. 

Builders Insurance by State 

Each Australian state has its own rules for Builders Warranty Insurance: 

State	Requirement
NSW	Mandatory for residential projects over $20,000.
VIC	Required for domestic building over $16,000.
QLD	Compulsory through QBCC for most residential work.
WA, SA, TAS, NT, ACT	Varies—check local building authority.

💡 Always confirm current thresholds with your state’s building authority. Non-compliance can result in fines or license suspension. 

Final Thoughts 

Builders insurance is a critical part of running a professional and secure construction business in Australia. It’s not just about ticking boxes for compliance—it’s about ensuring your hard work is protected. 

To get the best builders insurance quote: 

• Understand your risks 
• Get multiple quotes 
• Read the fine print 
• Balance value with cost 
• Take steps to reduce your risk 

Don’t leave your livelihood exposed to chance. The right insurance lets you focus on what you do best—building. 

📞 Get a Quote with Sirius Insurance 

Need help finding the right policy? 
Contact Sirius Insurance—our trusted insurance broker who specialises in construction. 

Their team can: 

• Help you compare options from multiple insurers 
• Explain your legal obligations in plain English 
• Tailor a policy that fits your business 
• Save you time, hassle, and potentially thousands on your premiums 

👉 Reach out to Sirius Insurance today and get a builders insurance quote you can count on.