Professional indemnity for engineers, architects, certifiers, building designers, quantity surveyors and project managers.

Queensland engineers. The Professional Engineers Act 2002 does not mention insurance at all. The whole in-force text was searched for the word stems and it returns nothing. The duty comes from Principle 3.2 of the Board of Professional Engineers of Queensland Code of Practice, which is a statutory instrument made under the Act and given effect by regulation. It requires a registered professional engineer to take all reasonable steps to procure and maintain professional indemnity insurance appropriate for the services being provided.

That is a reasonable-steps duty rather than a strict duty to hold a policy, no minimum sum is prescribed, and the Board's own published practice note on professional indemnity records two carve-outs: an engineer providing the service only as an employee of the person engaged to provide it, where that person has complied, and an engineer for whom insurance is unavailable or would be economically unviable, provided the client is told in writing before the agreement is entered. Breach is not an offence. It is evidence in a disciplinary proceeding.

Queensland architects. The same architecture, on the sister Act. The Architects Act 2002 is silent on insurance, and the duty lives in paragraph 36(a) of the Board of Architects of Queensland Code of Practice, a statutory instrument approved by regulation. It is the same "take all reasonable steps to procure and maintain" formula, appropriate to the services being provided, with the same two carve-outs: an architect covered because the person engaged to provide the services has complied, and an architect for whom cover is unavailable or would be economically unviable who tells the client so in writing before the agreement.

Two things are worth stating precisely, because both halves get misreported. It is a mandatory duty, so "Queensland architects do not need professional indemnity insurance" is wrong. It is also not a precondition of registration or renewal, and it prescribes no minimum sum, so "you cannot register in Queensland without it" is wrong too. It is enforced by audit and discipline.

Victorian architects. Victoria does it the opposite way, with an offence and a number. The Architects Act 1991 makes it an offence for a person to carry out work as an architect without the required insurance, and the amount is set by the Architects Insurance Ministerial Order made in January 2020. That order sets the limit two ways, which is a distinction worth understanding on its own and is covered below. The duty is on the individual registered architect rather than only on firms, an employee architect is covered through the practice's policy, and every architect required to be covered has to give the Board written proof each financial year.

Victorian engineers. Registration under the Professional Engineers Registration Act 2019 carries no insurance requirement whatsoever. The Act and its regulations were both searched in full. The duty bites only on an endorsed building engineer, meaning a registered professional engineer whose registration is endorsed to work in the building industry, and it comes from the Building Act 1993 and the Building Practitioners' and Endorsed Building Engineers' Insurance Ministerial Order made in June 2021, rather than from the engineers legislation. If you are registered but not endorsed, that order does not reach you through your engineer registration. It can still reach you through a separate registration, which is the next section's point.

New South Wales engineers, designers and building practitioners. The Design and Building Practitioners Act 2020 makes adequate insurance a condition of registration for design practitioners, principal design practitioners, professional engineers and building practitioners, and practising without it is an offence. No dollar figure appears anywhere in the Act or the Regulation. Instead the test is that the cover must, in your own reasonable opinion, provide an adequate level of indemnity, judged against six listed matters: the nature and risks of the work you typically do, its volume, how long you have been registered, a reasonable estimate of the claims that could follow from those three, your financial capacity, and the limits and exclusions of the policy itself.

Two wording points matter. The Act says "adequately insured" rather than "professional indemnity insurance", and for building practitioners it expressly allows an insurance policy "whether a professional indemnity policy or otherwise". Engineers can also satisfy the requirement through an approved arrangement rather than a policy, by meeting the insurance requirements of a professional standards scheme body or a recognised engineering body.

New South Wales architects. Mandatory, with no figure. The Architects Act 2003 imposes no duty of its own; the obligation is clause 15 of the Code of Professional Conduct scheduled to the Architects Regulation 2017, and it requires a policy appropriate for the architectural services being provided. It binds the individual practising architect rather than the architect corporation or firm, it switches off for an architect who works only as an employee of the person engaged, and it comes with a client disclosure obligation about the cover held for that client's work. Enforcement is removal from the Register and disciplinary action rather than a criminal penalty.

Queensland is the clearest demonstration of this, three times over.

A building certifier in Queensland is only required to hold professional indemnity insurance if they hold a private certification endorsement. The Building Act 1975 makes the insurance a condition of that endorsement being made, requires evidence of it on renewal of a licence carrying the endorsement, and requires QBCC to show cause and cancel the endorsement if the certifier does not have it. A building certifier without the endorsement is not caught.

A surveyor in Queensland is only required to hold cover for the consulting surveyor endorsement, or as a registered corporation. The Surveyors Act 2003 makes it an eligibility requirement for the endorsement and requires evidence of it when a corporation applies for registration. A registered surveyor with no consulting endorsement, and an employed surveyor covered by their corporate employer's policy, is not personally required to take out cover.

A QBCC licensee is only required to hold cover in the specific licence classes listed in Schedule 2 of the Minimum Financial Requirements Regulation 2018. Building design, in its low rise, medium rise and open classes, sits at $500,000. Site classifier sits at $1,000,000.

Termite management and one fire protection class sit at $500,000, several fire protection and passive fire protection classes sit at $1,000,000, and fire alarm system certification sits at $5,000,000, although that one class may instead carry public and products liability of at least $5,000,000. A general builder's licence and a trade contractor's licence do not appear in that table at all.

A licensee who is a director or employee of a corporation, or a partner in a partnership, satisfies the requirement if the corporation or partnership holds the cover. There is also a waiver: QBCC may waive the requirement where insurance is not available in the marketplace or would be economically unviable given the cost and the business's turnover, and a licensee whose requirement has been waived must then tell a consumer in writing, before entering a building contract, that the requirement has been waived and what cover they do hold.

Victoria runs the same logic through practitioner categories rather than endorsements. Under the Building Practitioners' and Endorsed Building Engineers' Insurance Ministerial Order made in June 2021, building surveyors, building inspectors, quantity surveyors and draftspersons in the building design classes carry professional indemnity, while demolisher and temporary structure classes carry public liability instead. A building surveyor also has a much higher requirement before entering a private certification agreement: not less than $5 million for any one claim and in the aggregate.

The practical consequence is worth stating plainly. If you are working out what you are required to hold, the question is not "what am I called". It is "what does my registration or licence actually authorise me to do, and is that class named in the table".

Defence costs are the mechanic nobody asks about and the regulators do. The Victorian architects order made in January 2020 sets the minimum as either not less than $1.2 million for any one claim and in the aggregate where defence costs are included in the limit, or not less than $1 million excluding defence costs plus a further amount for costs, being the greater of $200,000 or 20 per cent of the limit.

The Victorian order for endorsed building engineers and for the building practitioner categories, made in June 2021, does the same thing at a different level: either not less than $1.5 million where defence costs are included, or not less than $1 million plus $500,000 for defence costs where they are not.

New South Wales writes the same idea a third way for certifiers: a maximum claim limit of not less than $1 million, plus a further 20 per cent of that limit for relevant expenses, meaning the cost of investigating a claim and the legal cost of defending or settling it.

Read those together and the point makes itself. Victoria's two orders price the same difference at 20 per cent for architects and 50 per cent for building engineers and the practitioner categories, and New South Wales adds a further 20 per cent on top of a certifier's limit for the same reason. That is the size of the gap between a limit that has to carry its own defence costs and one that does not, and it does not appear anywhere on a certificate of currency. If you are comparing two quotes at the same headline limit and one is costs-inclusive, you are not comparing like with like.

Each of those orders also requires at least one automatic reinstatement of the limit, which matters in a sector where one project can generate several claims.

Cladding is a live, dated exception rather than a settled one. In Queensland, QBCC has extended its exemption so that until 30 June 2027 a private certifier does not require professional indemnity cover for private certifying functions directly related to non-compliant external cladding. That is a real concession with a real end date, and it is worth checking against the calendar rather than against memory: an exemption that has moved twice can move again, and it can also simply expire.

Separately, and this is the part that catches people, the insurance requirements themselves permit a cladding exclusion. The New South Wales certifiers regulation expressly permits a policy to exclude claims relating to non-compliant external cladding, and the Victorian ministerial order expressly permits the same exclusion for building surveyors, building inspectors, quantity surveyors, all draftsperson classes and endorsed building engineers. So a policy can carry a cladding exclusion and still be fully compliant with the regulator's requirement. Compliance and cover are two different tests, and passing the first does not tell you anything about the second.

The New South Wales certifiers regulation also permits an exclusion for work on a building that never received an occupation certificate, unless the claim is made and notified within ten years of the certifier's last inspection or, if there was none, of first occupation or use.

That distinction decides more than the price does. Two policies can grant cover in near-identical terms and behave completely differently, because what changes between them is how your professional business is defined and what has been attached to or removed from it.

In this family the definition question is unusually sharp, because the work sits on a spectrum from pure advice at one end to design-and-construct at the other, and the further along that spectrum a business moves, the more its risk stops looking like professional advice and starts looking like a construction risk. A practice that has taken on design-and-construct work, or novated design, or contract administration, has changed what it needs the definition to say. That is not a renewal formality.

Retroactive cover is where this family diverges most from other professions, and in one case it is compelled. The New South Wales certifiers regulation does not merely expect retroactive cover, it requires an individual certifier's policy to extend to all liability incurred at any time since they first became a registered certifier, with the clock reaching back to their original accreditation under the predecessor schemes.

Corporate and partnership policies have to extend to registered directors, partners and employees for liability incurred while they were with the firm, including people who have since left. If you have moved firms, or if your firm has restructured, that is the provision to check your history against. How the retroactive date works in general, and what happens to it when you switch insurers, is on the main Professional Indemnity Insurance page.

There is also a category error worth heading off in this sector specifically. Home warranty cover in Queensland, and domestic building insurance in Victoria, are statutory schemes that protect the building owner against incomplete or defective domestic building work. They are not liability policies for the practitioner, they are not placed by a broker, and they do not respond to a professional negligence claim. Victoria's own building regulator says in terms that the home warranty regulations do not replace the professional indemnity requirements that apply to a building surveyor's registration. Holding one has never satisfied the other.

Finally, and for the same reason, the New South Wales statutory duty of care owed to owners under the Design and Building Practitioners Act is a liability driver, not an insurance mandate. It is one of the strongest reasons in the country to be well insured. It is not itself the requirement to be insured, and the two should not be run together.

The first thing we check is whether the requirement you are being measured against is the one that actually applies to you. In this family that is a genuine question, not a formality. An engineer registered in Victoria but not endorsed for the building industry has no insurance obligation under the Professional Engineers Registration Act, and none under the Building Act order either, unless they are separately registered in one of the practitioner categories that order names.

The same engineer doing work on a class 2, 3 or 9c building in New South Wales can be a registered design practitioner and squarely inside a scheme with an offence attached. The obligation followed the work across the border, not the person's title.

The second is the definition of the professional business, read against what the practice actually does now. Design and construction practices drift, and they drift in the direction of more risk: a consulting practice takes on contract administration, a design office takes on a design-and-construct package, a certifier's firm adds an inspection service. Every one of those changes the exposure, and none of them changes the policy unless someone raises it.

The third is defence costs and reinstatements rather than the headline limit. In a sector where a single project can produce more than one claim, and where a contested defect claim can run for years, an aggregate limit with costs inside it and no reinstatement is a materially thinner policy than the same number with costs outside it and a reinstatement attached. The regulators have already told you how much thinner. We read for that first.

The fourth is the exclusions the regulator has expressly permitted. A cladding exclusion does not make a policy non-compliant, so it will not be flagged by anyone checking compliance. Whether it should be there, whether it can be narrowed, and what it means for a specific project is a different question, and it is the sort of question worth asking before you sign a contract rather than after a claim.

One boundary worth being straight about. What your registration scheme requires of you is a question for your board or regulator, and for your own legal adviser if the answer matters to a contract you are signing. This page sets out what those schemes say so you know which questions to ask. What your policy actually does about it is our side of the table, and that is the part we will read line by line.