State-Based Insurance Requirements for Engineers

In Australia, it is the individual states that manage registration and insurance requirements for most industries, including Engineers.

Each state has its own unique registration and insurance requirements. If your business is working across multiple states or is looking to expand to a new state, it is important to understand these various requirements.

Quick insurance overview:

State Requirements

Queensland (QLD)

• Regulatory Body: Board of Professional Engineers of Queensland (BPEQ)
• Legislation: Nil
• Requirements:
  • Whilst there is no government legislation enforcing the requirement for an Engineer in Queensland to take out insurance coverage, all practising engineers in Queensland must be registered with BPEQ.
  • As a member of BPEQ, you must abide by their Code of Practice, which, as a registered professional engineer, you must:
    • take all reasonable steps to procure and maintain professional indemnity insurance during each year that is appropriate for the services being provided by the registered professional engineer
  • The use of the word must indicates the RPEQ Board’s intention that members are required to comply with the provision. It is not a choice that may or may not be exercised at the RPEQs’ discretion.
  • The policy must be appropriate for the nature of the engineering work undertaken.
  • Minimum coverage limits are not specified in the Code of Practice.

New South Wales (NSW)

• Regulatory Body: NSW Fair Trading
• Legislation: Design and Building Practitioners Act 2020 (relevant to certain engineers)
• Requirements:
  • Not all engineers in NSW need to be registered. Currently, registration is only required for engineers who work on:
    • Class 2 buildings; or
    • Buildings with a class 2 part; or
    • Class 3 buildings; or
    • Class 9c buildings
  • Registered professional engineers must meet professional indemnity insurance requirements and hold coverage for an adequate amount based on the type of work they do and their exposure to risk.

Victoria (VIC)

• Regulatory Body: Victorian Building Authority (VBA)
• Legislation: Building Act 1993
• Requirements:
  • Engineers working within the building industry must be registered and endorsed under the Professional Engineers Registration Act 2019.
  • The legislation prescribes that engineers working in the following fields must be registered:
    • Civil Engineering
    • Electrical Engineering
    • Fire Safety Engineering
    • Mechanical Engineering
    • Structural Engineering
  • Endorsed engineers must carry professional indemnity insurance as part of the registration process with the VBA.
  • Professional indemnity coverage is required to be at least $1,500,000 or $1,000,000, with costs exclusive or costs in addition to the limit.

Western Australia (WA)

• Regulatory Body: Department of Mines, Industry Regulation and Safety (DMIRS)
• Legislation: Building Services (Registration) Regulations 2011 (WA)
• Requirements:
  • Engineers working in certain engineering disciplines will need to be registered. These disciplines are:
    • Civil Engineering
    • Fire Safety Engineering
    • Mechanical Engineering
    • Structural Engineering
  • It is recommended that you review the licensing guide to determine your individual professional indemnity requirements.
  • For other engineers, professional indemnity insurance is strongly recommended, especially for those entering into contracts with government or large private clients.

South Australia (SA)

• Regulatory Body: Consumer and Business Services (CBS)
• Legislation: Nil
• Requirements:
  • There are no current requirements in South Australia for engineers to be registered or obtain professional indemnity insurance. The SA government is currently reviewing this.
  • Contractual obligations, however, often specify insurance requirements for engineers, particularly in large government or infrastructure projects.
  • If you are a member of an association, they may have their own insurance requirements.

Tasmania (TAS)

• Regulatory Body: Consumer, Building and Occupational Services (CBOS)
• Legislation: Occupational Licensing Act 2005
• Requirements:
  • Engineers in Tasmania are required to be licensed through CBOS. There are three sub-classes of licensed engineers:
    • Engineer Fire Safety – This class is unrestricted in the field of fire safety engineering and includes deemed-to-satisfy and performance solutions. Fire safety engineering is the application of engineering principles, rules, and expert judgement based on a scientific appreciation of fire and its effects, as well as the reaction and behaviour of people in the event of fire.
    • Engineer Building Services – This class is unrestricted in the field of building services and includes deemed-to-satisfy and performance solutions. Building services may consist of mechanical building services, hydraulic building services, electrical building services, fire safety systems, building acoustics and energy management in buildings.
    • Engineer Civil – This class is unrestricted in the field of civil engineering and includes deemed-to-satisfy and performance solutions. Civil engineering may consist of civil, structural, geotechnical and environmental engineering.
  • An amount of $1,000,000 of professional indemnity insurance cover is required to meet the licensing requirements for an engineer in Tasmania.

Australian Capital Territory (ACT)

• Regulatory Body: Access Canberra – Professional Engineers Registration Scheme
• Legislation: Professional Engineers Act 2023
• Requirements:
  • From 6 March 2025, all professional engineers will be required to be registered.
  • The prescribed areas of engineering requiring registration are:
    • Civil Engineering
    • Electrical Engineering
    • Fire Safety Engineering
    • Mechanical Engineering
    • Structural Engineering
  • A more in-depth overview of these sectors can be found here.
  • Professional indemnity insurance will be required to meet the newly created Code of Practice for engineers; however, at this stage, details of the cover requirements are not available.

Northern Territory (NT)

• Regulatory Body: Building Practitioners Board NT
• Legislation: Nil
• Requirements:
  • Certain engineers are required to be licensed to operate in NT. These are:
    • Certifying Engineer (Hydraulic)
    • Certifying Engineer (Mechanical)
    • Certifying Engineer (Structural)
  • For these engineers, a professional indemnity policy of $1,000,000 or more is required.
  • For all other engineers, there are currently no licensing requirements or insurance requirements in place.

General Recommendations for all Engineers

• Run-Off Cover: Across all states, run-off cover is recommended for engineers retiring or ceasing to trade. While not always legislatively required, it protects your business from claims related to past work, particularly for engineers involved in long-term infrastructure or design projects.
• Coverage Amount: Engineers are encouraged to seek advice on the appropriate level of cover, which can depend on the nature of their work, the size of projects, and client or contractual obligations. As a qualified insurance broker, we are able to assist you with determining what could be considered adequate insurance aligning with your specific risk exposures.
• Overseas Exposure: For engineers who are working with clients based outside of Australia, there will be unique insurance requirements. Please read our article on Working with Overseas Clients for more information.

Overview

In Australia, the requirements for professional indemnity insurance for engineers can vary depending on what type of work you conduct and what state you operate in.

Even where it’s not required by law, it’s considered best practice to have professional indemnity insurance coverage in place to protect against potential claims of negligence or errors.

Run-off cover remains crucial for long-term protection, especially after retirement or business closure.

Always consult with an insurance broker or legal advisor to ensure compliance with local regulations and contractual obligations.