You may currently have a Business Insurance or Trades Insurance Package Policy. This is not a contract works or construction insurance policy and does have different cover. A contract works insurance policy generally has two parts, part a material damage and part b liability.

The material damage part of the policy is intended to cover damage to a project whilst the project is under construction. Whether this is a bushfire, storm, flood or theft from the site, the intention is to ensure that you and your customer do not have to repay for the cost of materials to rebuild the project to where it was at prior to the event occurring.

It is possible (though not always included) to also cover your tools whilst on site and your mobile plant / hired in plant (like excavators or EWPs) on the project site, this cover is known as minor plant (tools) and major plant (excavators etc). If you require cover for tools or plant, you should check you have sufficient Minor or Major Plant sum insured. This often replaces a general property policy that you may have taken with your trades insurance package.

The liability section of the policy replaces your trades public liability policy. There are a number of common exclusions within a trades insurance package such as;

  • Height Limitations or Restrictions - Usually in the exclusions of a tradesman package, you are not covered for loss or damage when you are working above xm where x could be 6, 8, 10 or 12 meters.
  • Hot Works Exclusions - Welding, Flame Cutting, Torch Lamps, Hot Air Guns and Soldering Irons are some of the types of activities often excluded by a Trades Insurance Package under the Hot Works Exclusion.
  • Depth Limitations - Usually 2 or 4 m in depth will be excluded under a tradepack
  • Vibration and Weakening of Support Exclusion - A common exclusion in a trades or business package but can be easily covered in a contract works insurance package.

If you manufacture items for sale as a part of your business, this is not usually included in all contract works policies. For instance, a concrete company with contract works that manufactures and sells without the installation of items such as garden edges, pre-cast slabs, culverts etc, this would require an extra cover not often included. It is important to ensure that we understand all your business activities.

In some contract works policies, it is possible to also add cover for incidental professional indemnity such as a claim arising from incidental project management services or an accidental change to the building ‘plans’. Such services, errors or omissions are often excluded by trades packages, business packages and some contract works policies.




Residential Builders in NSW must obtain home warranty or Home Building Compensation Fund (HBCF) cover for projects that exceed $20,000 and are 3 stories or less.

We can help you with obtaining your NSW Home Warranty Insurance eligibility, reviewing your NSW HBCF current eligibility profile, and with submitting requests for Certificates of Insurance.



Are you an Authorised Distributor for NSW HBCF?

We work with you, as your broker and advisor to assist you with your NSW HBCF Eligibility and Project Certificate Requirements.

Whilst the number of distributors in NSW was reduced on the 3rd October 2017 and we are no longer a direct distributor; we are able to provide a service to you through a Wholesale Agreement with an Authorised Distributor.  

The Authorised Distributor processes the documentation we send to them with SIRA. We assist you in preparing the documentation before it is submitted to the Distributor to ensure you have the quickest possible response time and that you have supplied the right documentation that may be required.



Once you have been registered, you can access the NSW HBCF Builder Self-Service Portal here.

To gain access to the builders self service portal, you need to:

  1. Identify a responsible person within your business to have access to the portal as the self-service portal manager.

  2. Send an email to your broker with the name, phone number and the email address of your nominated person, if you are not an existing client of Affinity Insurance Services, we will send you a Letter of Appointment by reply so that we can assist you with this transfer. 

  3. The broker will forward that information to hbcf.

  4. We will create a user identity and set up a password and notify the nominated person of their login details.




On 3 November 2016, NSW Government made an announcement outlining reforms to the Home Building Compensation Fund (HBCF). The reforms include changes to premiums over the next two years to ensure the scheme's sustainability and the introduction of risk based pricing, so that premiums better reflect a building contractor's individual level of risk.

The NSW Home Warranty and Home Building Compensation Fund Reforms came into effect on Monday 3rd April 2017, with additional reforms coming into effect on the 3rd October 2017.

Not sure how these changes will affect you? Maybe you can't find anyone that can answer your questions? We understand NSW Home Warranty (HBCF) and we're here to help.