The NSW government has yet to define what “adequate insurance” means in its draft Building Bill 2024, risk adviser Bellrock says.

Under the changes, construction professionals, builders and tradespeople must be “adequately insured” before carrying out licensed work, according to the draft legislation.

“The scope of what is ‘adequate’ and guidance on same is not yet prescribed,” Bellrock says in an analysis of the proposed reform. 

“Bellrock will be monitoring this closely and will provide an update as soon as the particulars are released.”

Building Commission NSW sought feedback on the draft bill from selected industry groups, and there will be further opportunities for stakeholder review and comment under the consultation process. It expects to finalise the bill next year.

Bellrock says the Building Bill, if passed, will consolidate nine acts in the state.

“It is intended that less red tape ... will yield higher-quality construction and return consumer confidence to the sector ... this utopia may become a reality very soon,” the broker says.

“Overall, the hope is to increase the quality of the state’s construction projects.”

Click here for the Bellrock analysis.