============================================================ TITLE: What does the DBPA update mean for brokers with construction clients? TYPE: blog VERSION: 1 VERSION_ID: 10fd1bde-807b-403d-9ad8-ea4550f77129 GENERATED_AT: 2026-06-09T01:10:03.821Z SUMMARY: What do the DBPA changes mean for brokers? Mandatory PI insurance, Class 3 and 9c remedial work obligations, and how Hutch D&C PI responds. AUTHOR: Kim Beavis DATE PUBLISHED: June 8, 2026 DATE MODIFIED: June 8, 2026 READING TIME: 7 min WORD COUNT: 1337 SOURCE URL: https://hutchunderwriting.com.au/blog/dbpa-2026-nsw-construction-pi-insurance ============================================================ KEY TAKEAWAYS: * What is the DBP framework? * What is changing on 1 July 2026? * Why does the Class 3 and 9c remedial work extension matter? * What should brokers be discussing with construction clients? * What does a purpose-built D&C PI policy look like? 3 min read # What does the DBPA update mean for brokers with construction clients? Kim Beavis : 09/06/2026 9:22:27 AM Construction Professional Indemnity Design & Construct DBPA Update From 1 July 2026, changes to the NSW Design and Building Practitioners (DBP) framework are scheduled to take effect. For many brokers, the headline change around mandatory Professional Indemnity insurance for registered building practitioners will already be on the radar. But there is a second change in this update that deserves equal attention, and it is one that could catch a number of construction clients off guard. ## What is the DBP framework? The Design and Building Practitioners Act 2020 (DBP Act) and its accompanying Regulation introduced a framework of obligations for design and building practitioners working on regulated buildings in NSW. The framework requires registered design practitioners to produce and lodge various design documents on the NSW Planning Portal before building work commences. Building practitioners must then provide compliance declarations confirming work was carried out in accordance with those designs. The framework has applied to Class 2 buildings (residential apartment buildings) since 2021. From 1 July 2026, it expands. ## What is changing on 1 July 2026? The 1 July 2026 changes include: Mandatory Professional Indemnity insurance requirements for registered building practitioners in NSW. Expansion of the DBP framework to cover repair, alteration and renovation work on existing Class 3 and Class 9c buildings, a category previously granted leniency and extensions to comply. Continued use of regulated designs and compliance declarations through the NSW Planning Portal for all regulated work. Increased regulatory oversight, including auditing powers held by Building Commission NSW, with penalties available for non-compliance. "From 1 July 2026, changes to the NSW DBP framework are currently scheduled to commence. Brokers should monitor NSW Building Commission announcements for any further updates." ## Why does the Class 3 and 9c remedial work extension matter? Class 3 buildings include boarding houses, backpacker accommodation and some aged care facilities. Class 9c buildings include residential aged care facilities. Firms undertaking repair, alteration or renovation work on these building types have, until now, operated outside the DBP framework entirely. From 1 July 2026, remedial building work on these buildings will require a registered design practitioner to produce declarations before work can proceed. Those declarations must be lodged on the NSW Planning Portal by the building practitioner, along with compliance declarations. This matters for PI insurance in two specific ways. First, firms that have never previously needed to carry Professional Indemnity insurance may now be required to do so as a condition of registration. For brokers, this represents a genuine new business opportunity among clients who may not yet have sought PI cover. Second, firms that already carry PI insurance need to consider whether their existing policy responds to the professional obligations they are now taking on. A general liability policy is unlikely to be sufficient. A standard PI policy written for pure consulting or design firms may not respond correctly where design and construction obligations sit with the same entity. ## What should brokers be discussing with construction clients? As 1 July approaches, a number of conversations are worth having with construction clients: Whether their activities fall within the updated framework, including any remedial work on Class 3 or 9c buildings they may be undertaking or tendering for. Whether existing insurance structures respond to design liability, particularly where compliance declarations are being produced and lodged. How claims-made and notified policies operate, including the significance of the retroactive date where remedial work spans multiple policy periods. The operation of novated contracts, where design responsibility shifts to the builder, and whether existing PI cover extends to assumed liabilities of that nature. Insurance requirements and suitability will vary depending on individual circumstances. Brokers should consider directing clients to seek their own legal advice on their specific obligations under the DBP framework. ## What does a purpose-built D&C PI policy look like? Not all PI policies are built the same way. Most professional indemnity wordings are designed for pure design or consulting firms. They can fall short when design and construction responsibilities sit with the same entity, as is common in novated contract arrangements or D&C projects where the principal has transferred design obligations to the builder. Hutch PI Design & Construct is a purpose-built wording for firms where construction delivery and professional exposures intersect. It is not a retrofitted general PI policy. Optional extensions for Novated Contracts, Proportionate Liability Waiver, Mitigation Costs, and Sudden & Accidental Pollution help brokers tailor cover to the way D&C firms actually operate. Principals Indemnity is automatically included. Subject to policy terms, conditions, limits, exclusions and underwriting acceptance. Backed by Lloyd's. Hutch PI Design & Construct is available exclusively on Ebix Sunrise Exchange, under product code HUTPI. ## How do I get a quote? Dawn, Hutch's keyless quote and bind service, makes the front end of the process faster still. Email your client's proposal to dawn@ai.hutchunderwriting.com.au in any format and Dawn will read the submission, pre-populate your Sunrise quote form and place it in your import queue within minutes. You review, declare and bind. No login. No re-keying. Dawn accepts any market form, but using the Hutch PI Design & Construct proposal form significantly improves quote accuracy. Referrals are handled by our Financial Lines team typically within four business hours, or one business day during peak times. * Show me how to get a PI D&C quote * Download the current D&C Wording * Download Hutch's D&C proposal form The image in this post was generated with AI. (Bouncers are usually a lot taller). This article is intended for licensed insurance brokers. It provides general information only and does not take into account the objectives, financial situation or needs of any individual. The information is not intended, and should not be relied on, as financial or legal advice. Insurance coverage under the Hutch Underwriting products is subject to the terms, conditions, limits and exclusions in the relevant PDS/policy wordings, which are available from the Hutch Underwriting website. 1 min read Hutch Underwriting launches new PI wordings for Design & Construct and Trades. Kim Beavis : 21/11/2025 12:14:48 PM Specialist PI cover with Cyber included as standard, now available to brokers via Ebix Sunrise Exchange. [SYDNEY, FRIDAY 21 NOVEMBER 2025] – Hutch... Announcements Press Release Trades Financial Lines Professional Indemnity Design & Construct Read More 1 min read Dawn Breaks for Sunrise Users Kim Beavis : 20/05/2026 12:31:48 PM Announcements Press Release Strata Financial Lines Professional Indemnity Management Liability Read More 1 min read Retroactive Dates in Professional Indemnity Kim Beavis : 05/03/2026 8:10:16 AM Professional Indemnity Retroactive date Read More 1 min read #### Hutch Underwriting launches new PI wordings for Design & Construct and Trades. Kim Beavis : 21/11/2025 12:14:48 PM Specialist PI cover with Cyber included as standard, now available to brokers via Ebix Sunrise Exchange. [SYDNEY, FRIDAY 21 NOVEMBER 2025] – Hutch... Announcements Press Release Trades Financial Lines Professional Indemnity Design & Construct #### Dawn Breaks for Sunrise Users Kim Beavis : 20/05/2026 12:31:48 PM Announcements Press Release Strata Financial Lines Professional Indemnity Management Liability #### Retroactive Dates in Professional Indemnity Kim Beavis : 05/03/2026 8:10:16 AM Professional Indemnity Retroactive date ------------------------------------------------------------ FREQUENTLY ASKED QUESTIONS: Q: What is the DBP framework? A: The Design and Building Practitioners Act 2020 (DBP Act) and its accompanying Regulation introduced a framework of obligations for design and building practitioners working on regulated buildings in NSW. The framework requires registered design practitioners to produce and lodge various design documents on the NSW Planning Portal before building work commences. Building practitioners must then provide compliance declarations confirming work was carried out in accordance with those designs. The framework has applied to Class 2 buildings (residential apartment buildings) since 2021. From 1 July 2026, it expands. Q: What is changing on 1 July 2026? A: The 1 July 2026 changes include: Mandatory Professional Indemnity insurance requirements for registered building practitioners in NSW. Expansion of the DBP framework to cover repair, alteration and renovation work on existing Class 3 and Class 9c buildings, a category previously granted leniency and extensions to comply. Continued use of regulated designs and compliance declarations through the NSW Planning Portal for all regulated work. Increased regulatory oversight, including auditing powers held by Building Commission NSW, with penalties available for non-compliance. From 1 July 2026, changes to the NSW DBP framework are currently scheduled to commence. Brokers should monitor NSW Building Commission announcements for any further updates. Q: Why does the Class 3 and 9c remedial work extension matter? A: Class 3 buildings include boarding houses, backpacker accommodation and some aged care facilities. Class 9c buildings include residential aged care facilities. Firms undertaking repair, alteration or renovation work on these building types have, until now, operated outside the DBP framework entirely. From 1 July 2026, remedial building work on these buildings will require a registered design practitioner to produce declarations before work can proceed. Those declarations must be lodged on the NSW Planning Portal by the building practitioner, along with compliance declarations. This matters for PI insurance in two specific ways. First, firms that have never previously needed to carry Professional Indemnity insurance may now be required to do so as a condition of registration. For brokers, this represents a genuine new business opportunity among clients who may not yet have sought PI cover. Second, firms that already carry PI insurance need to consider whether their existing policy responds to the professional obligations they are now taking on. A general liability policy is unlikely to be sufficient. A standard PI policy written for pure consulting or design firms may not respond correctly where design and construction obligations sit with the same entity. Q: What should brokers be discussing with construction clients? A: As 1 July approaches, a number of conversations are worth having with construction clients: Whether their activities fall within the updated framework, including any remedial work on Class 3 or 9c buildings they may be undertaking or tendering for. Whether existing insurance structures respond to design liability, particularly where compliance declarations are being produced and lodged. How claims-made and notified policies operate, including the significance of the retroactive date where remedial work spans multiple policy periods. The operation of novated contracts, where design responsibility shifts to the builder, and whether existing PI cover extends to assumed liabilities of that nature. Insurance requirements and suitability will vary depending on individual circumstances. Brokers should consider directing clients to seek their own legal advice on their specific obligations under the DBP framework. Q: What does a purpose-built D&C PI policy look like? A: Not all PI policies are built the same way. Most professional indemnity wordings are designed for pure design or consulting firms. They can fall short when design and construction responsibilities sit with the same entity, as is common in novated contract arrangements or D&C projects where the principal has transferred design obligations to the builder. Hutch PI Design & Construct is a purpose-built wording for firms where construction delivery and professional exposures intersect. It is not a retrofitted general PI policy. Optional extensions for Novated Contracts, Proportionate Liability Waiver, Mitigation Costs, and Sudden & Accidental Pollution help brokers tailor cover to the way D&C firms actually operate. Principals Indemnity is automatically included. Subject to policy terms, conditions, limits, exclusions and underwriting acceptance. Backed by Lloyd's. Hutch PI Design & Construct is available exclusively on Ebix Sunrise Exchange, under product code HUTPI. Q: How do I get a quote? A: Dawn, Hutch's keyless quote and bind service, makes the front end of the process faster still. Email your client's proposal to dawn@ai.hutchunderwriting.com.au in any format and Dawn will read the submission, pre-populate your Sunrise quote form and place it in your import queue within minutes. You review, declare and bind. No login. No re-keying. Dawn accepts any market form, but using the Hutch PI Design & Construct proposal form significantly improves quote accuracy. Referrals are handled by our Financial Lines team typically within four business hours, or one business day during peak times. Show me how to get a PI D&C quote Download the current D&C Wording Download Hutch's D&C proposal form The image in this post was generated with AI. (Bouncers are usually a lot taller). This article is intended for licensed insurance brokers. It provides general information only and does not take into account the objectives, financial situation or needs of any individual. The information is not intended, and should not be relied on, as financial or legal advice. Insurance coverage under the Hutch Underwriting products is subject to the terms, conditions, limits and exclusions in the relevant PDS/policy wordings, which are available from the Hutch Underwriting website. ------------------------------------------------------------ ABOUT THIS CONTENT ------------------------------------------------------------ Source: https://hutchunderwriting.com.au/blog/dbpa-2026-nsw-construction-pi-insurance Author: Kim Beavis Published: June 8, 2026 This content is provided for informational purposes. Please visit the original source for the most up-to-date information.