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Plumbing insurance

Licensed plumbers must hold insurance for plumbing work that requires a compliance certificate.

This insurance can help protect you if plumbing work is defective, incomplete or causes certain losses.

Using an appropriately licensed plumber gives you added protection because licensed plumbers must hold insurance before the BPC can issue or renew their licence.

When plumbing work is covered by insurance

Licensed plumbers must be covered by insurance when carrying out plumbing work that requires a compliance certificate.

A compliance certificate must be given to the person who requested the plumbing work within 5 days of the work being completed. This may be you, your builder or another person who engaged the licensed plumber.

If the work is incomplete and the licensed plumber has been terminated or will not complete the work, you must ask the licensed plumber for the compliance certificate in writing.

Plumbing work that requires a compliance certificate

Plumbing work that requires a compliance certificate includes:

  • plumbing work with a total value of $750 or more, including labour, materials, appliances and fixtures, regardless of who purchased them
  • all work carried out on below-ground sanitary drains
  • all work involving:
    • the installation, relocation, replacement or conversion of any gas-using appliance
    • the installation, modification or relocation of consumer gas piping
    • the construction, installation, relocation, alteration or replacement of cooling towers.

A compliance certificate confirms that the plumbing work complies with plumbing regulations and relevant Australian Standards. It also confirms that the work is covered by insurance for 6 years.

What plumbing insurance must cover

This is a summary only, please read the full details in the relevant Ministerial Order.

Plumbing insurance for work that requires a compliance certificate must include cover for:

  • the cost of rectifying defective plumbing work that does not comply with plumbing standards
  • consequential financial loss reasonably incurred because of defects or non-completion of the plumbing work
  • non-completion of plumbing work because:
    • the licensed plumber has died, disappeared, become insolvent, become legally incapacitated, or had their licence cancelled or suspended, or
    • you have terminated the contract early where the licensed plumber wrongfully failed or refused to complete the plumbing work
  • some breaches of Australian Consumer Law
  • public liability arising from the licensed plumber’s activities or from plumbing work that causes injury to another person or damage to another person’s property.

    Scope of insurance coverage

    The insurance coverage requirements (in summary only – please read the full details in the Ministerial Order) include:

    1. Public liability and completed work insurance: This protects against injury or damage caused to third parties during or after the plumbing work. A minimum cover of $5,000,000 for any one occurrence is required.
    2. All other liabilities (rectifying defects, trades practices, consequential financial loss):
      • Domestic plumbing work: These requirements protect consumers in cases of defective work or consequential financial loss caused by the defective work or if the licensed plumber dies, becomes insolvent or disappears, or wrongfully refuses to complete the work resulting in early termination of the contract. A minimum cover of $50,000 for any one claim or series of claims related to a compliance certificate is required.
      • Non-domestic plumbing work: A minimum cover of $100,000 for any one claim or series of claims related to a compliance certificate is required.

    This summary of the Ministerial Order: Licensed Plumbers General Insurance Order (2002) and any other information provided on this page including practical suggestions are provided for information purposes only. To the maximum extent permitted by law, the Building and Plumbing Commission (BPC) makes no warranties, representations or undertakings whether express or implied about the accuracy, reliability or authenticity of any information or material contained in the summary, and to the maximum extent permitted by law, accepts no liability whatsoever for direct, consequential or special loss or damage to any person arising from or in connection with the information, reliance on it, advice (or the use of such information for advice) which is provided in the summary, or incorporated within it. The summary is provided on the basis that all persons accessing it do so at their own risk and undertake responsibility for assessing the relevance and accuracy of any and all content. It is a reader’s responsibility to undertake their own assessment of, and obtain independent advice in respect of, the summary provided. No responsibility is taken by the BPC for any information or services which may appear on any linked website.

    How long plumbing insurance applies

    Plumbing insurance must cover the period from when the licensed plumber agreed to carry out the work until 6 years after the compliance certificate was issued for that work.

    If the licensed plumber does not issue a compliance certificate, the work must still be covered by insurance for 6 years after the date the licensed plumber stopped carrying out the work.

    The insurance cover should continue for this 6-year period even if the plumber stops operating, retires or stops doing plumbing work.

    If there is a problem with plumbing work

    If you have concerns about plumbing work, contact the licensed plumber first and give them a reasonable opportunity to inspect and rectify any defective work.

    You should:

    • keep records of quotes, emails, agreements, invoices and payments
    • take photos or videos of the issue
    • take reasonable steps to minimise damage, such as turning off the water or gas supply if it is safe to do so
    • contact the licensed plumber as soon as possible and explain the issue clearly, and give them time to respond
    • contact the builder as well, if a builder engaged the plumber
    • write down any agreement reached with the plumber and keep a copy.

    You may wish to also:

    • formally write to the licensed plumber with your concerns, evidence and what you want them to do to resolve the problem, including giving timeframes
    • ask the licensed plumber to consider making a claim on their insurance or to give you their insurance details, if they are unwilling to resolve the problem
    • consider some compromise or negotiated outcome, if it is in your interest to resolve the dispute.

    Make a complaint to BPC

    If you have evidence that plumbing work is defective and you cannot resolve the issue directly with the licensed plumber, you can lodge a complaint with the BPC.

    You can also lodge a complaint if you did not receive a compliance certificate for plumbing work that required one.

    The BPC can assess complaints about plumbing work carried out within 10 years from the date of the compliance certificate, or the date the work was completed, if the plumber is still licensed.

    The BPC will consider whether the work is compliant and what action, if any, is appropriate.

    Making an insurance claim

    You should give the licensed plumber a reasonable opportunity to rectify defective plumbing work if the plumber is still licensed and able to attend.

    There are specific circumstances when you may be able to make a claim directly through the licensed plumber’s insurer. This is when the licensed plumber has:

    • died, disappeared or become legally incapacitated
    • become insolvent or gone into administration
    • had their licence cancelled or suspended
    • wrongfully failed or refused to complete the plumbing work and you have terminated the contract as a result
    • refused to make an insurance claim, or
    • had an irretrievable breakdown of communication with the insurer.

    If a licensed plumber refuses to rectify defective plumbing work identified through a complaint, and refuses to make an insurance claim, the BPC may refer you to the licensed plumber’s insurer to make a claim.

    Request plumbing insurance details

    If you have not been able to resolve defective plumbing work with the licensed plumber after giving them a reasonable opportunity to do so, the BPC may be able to give you the plumber’s insurance details so you can contact the insurer directly.

    To request insurance details, contact the BPC at customerservice@bpc.vic.gov.au or call 1300 067 088.

    People who may be entitled to request plumbing insurance details include:

    • property owners
    • legal representatives
    • builders or building companies that engaged the licensed plumber
    • body corporate or owners corporation representatives.

    Disputes about an insurance claim

    The BPC cannot resolve disputes between you and the licensed plumber’s insurer about an insurance claim.

    If there is a dispute with the insurer, you can ask the insurer to review its decision.

    If the matter remains unresolved, you may wish to seek legal advice before deciding whether to take further action.

    Check a plumber before work starts

    Before you engage a plumber, check they are licensed for the type of plumbing work you need.

    Click here

    Insurance for Domestic Building Work

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    Last updated 23 July 2026
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