Commercial Defects | Master Builders Insurance Brokers

mbais product Commercial Defects

Commercial Defects

Complete cover for structural defects on commercial buildings.

Cover for

Commercial building work
Internal load bearing structures
External load bearing structures
External walls



Up to your selected limit starting at $1,000,000 per policy period
Minimum of 2% of the contract value or $10,000 is payable per claim

What is Commercial Defects Insurance?

Commercial Defects Insurance helps to protect you from defects in structural work occurring in a completed commercial building project.

Commercial Defects Insurance is an annual cover with a premium based on the amount of structural work included in your commercial project.

This policy covers the legal liability for claims made against the builder during the period of insurance for acts, errors and omissions of the builder resulting in structural defects after completion.

Commercial Defects Insurance provides indemnity up to the selected limit of liability, starting at $1,000,000. Under the policy you are required to pay the first 2% of the value of the contract or $10,000 whichever is the greater, each and every claim.

The premium paid is based on the structural work conducted by a builder and this is defined as:

  1. all internal and/or external load bearing structures essential to the stability or strength of the building or any part thereof, including, but not limited to foundations, floors, walls, roofs, columns, and beams; and
  2. all other works forming part of the external walls and roofing, but excluding weatherproofing works not designed to add strength or support to the building, moveable elements of external windows, doors, and skylights.

Likewise, a structural defect is defined as any defect in the structural works which affects the stability or strength of the building or any part thereof and is attributable to defective design, defective or faulty workmanship and/or defective materials and which:

  1. results in a regulatory authority closing or prohibiting the use of the building or any part thereof; or
  2. does or would prevent the continued practical use of the building or any part thereof; or
  3. results in destruction of the building or physical damage to the building or any part thereof; or
  4. results in threat of imminent collapse that may reasonably be considered to cause destruction of the building or physical damage to the building or any part thereof.


Key benefits
icon 50m cover
Up to a maximum of $10M any one policy period
icon tailored
Covers defective design, construction and materials discovered after completion
icon legal defense
Covers defence costs and liability to third parties
icon damaged premises
Covers building destruction or physical damage

Advice from our experts:

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These policies are written on a 'claims made' basis, which means claims can only be accepted when there is a current policy in force with an insurer.

Joe Keiper Southern Region Manager

Why choose Master Builders Insurance Brokers?

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