LBP Cover
Protecting Licensed Building Practitioners from certain professional errors, including license complaints.
What It Covers
Complaints to the LBP Board
Including defence costs and fines
Negligent Supervision
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.
Definition
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.
Explainer Video
This short video explains the key points of LBP insurance.
Speak to an Adviser:
0800 284 584
Claim Examples
SUPERVISION AND SIGN OFF
Roger, an LBP, was engaged by ABC Limited (ABC) to supervise and sign off on the construction of foundation and framing for a residential build. ABC had LBPs for the other aspects of the work required. Roger signed off on the foundations and framing but it transpires that the Record of Works incorrectly noted the grade of timber used and that the actual grade of timber used was inappropriate. This was discovered just as the bricklayer was about to start. ABC had to remove the framing and replace it. The build was put back by two months and so the customer lodged a complaint to the Board against ABC and Roger. The customer also provided ABC with an invoice for additional rental costs they incurred as a result of the delay. ABC told Roger he needed to pay the rental costs and rectification costs. The costs for defending the complaint and any resultant fine are covered. The claim for damages in the form of additional rental costs is covered. Any defence costs associated in settling the rental costs claim are covered.
SIGNING OFF RECORDS OF WORK
XYZ Building Company (XYZ) was engaged to build a residential house for a client. Steve is the only LBP that they employed and he supervises the build, including work undertaken by other non-LBP employees and subcontractors engaged by XYZ. On completion of the project Jack signed the Records of Work. Two years later the client called to say that the windows weren't sealed properly and resulted in water ingress causing damage to the building. The client made a complaint to the Board against Steve personally and also bought a civil claim for compensation against XYZ to get the work corrected, alleging that the documentation was a guarantee that the work was competently completed. The defence costs and fine in respect of the Board complaint against Steve are covered. The defence costs for the civil claim against XYZ are covered because the claim relates to an alleged error in the documentation. In terms of a settlement, there would be a contribution under the insurance for any financial loss damages claim (i.e. additional rental costs or interest on loan payments); however, the cost of rectification would either fall to XYZ or to a Builders Guarantee policy.
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.
WHAT'S COVERED
- 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
Years Established
Completed Projects
Builtin's Added Benefits
Builtin have negotiated a set of preferential terms and benefits for our clients. These are in addition to the standard policy wording, or would normally come at an additional cost.
LIGHT TRAILERS INCLUDED
Unspecified trailers you own, hire or borrow are covered automatically up to $2,000, provided they are not insured elsewhere. You can also add trailers to your policy up to $2,750 for no premium.
ACCESSORIES & SPARE PARTS AWAY FROM THE VEHICLE
Builtin's policy automatically includes cover for accessories and spare parts up to $5,000. They must be stored at your office or depot, your home or any secured worksite.
LOSS OF USE - OPTIONAL BENEFIT
Vehicles with Comprehensive cover can also be insured for "loss of use". This means if the vehicle is off the road while awaiting repairs the policy will pay towards hiring a replacement vehicle. You can choose how long the payments continue for and for how much:
| Amount Per Day | Cost For 14 Days Cover | Cost For 28 Days Cover |
| $100 | $80 | $155 |
| $150 | $115 | $230 |
| $200 | $155 | $310 |
| $300 | $230 | $465 |
Cost excludes GST. The benefit must be added per vehicle and there is a 5 day stand down before the cover starts. Call us on 0800 284 584 or email [email protected] if you'd like to add it.
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.