Before you sign a building contract or let work begin, one of the most important checks is whether the contractor is properly licensed and insured.
A contractor may be registered to carry out the work, but that does not automatically tell you what insurance they hold. In the same way, a contractor may say they are insured, but that does not confirm they are the right entity, that the policy is current, or that it suits the work being done.
For clients planning a new home or a commercial project, the safest approach is to check both independently.
Start with the builder’s registration or licence
In Western Australia, builder work valued over $20,000 generally requires a registered building service contractor, and that contractor must be named as the builder on the building licence or permit. The WA Government’s Find a registered builder service allows you to search the register and check the builder’s name, registration number, licence type, and whether there are conditions on the registration.
This is the first check to make because it confirms whether the business you are engaging is registered to contract for the specific type of building work you require.
When you check the register, do not just look for a familiar business name. Check that:
- the registration is current
- the entity name matches the contract
- the licence type matches the role they are performing
- and there are no conditions that could affect the work proposed.
Use the WA online licence search for trades as well
If the project involves separate licensed trades, those can also be checked. WA has an Online Licence Search for occupational licences issued by Building and Energy, Consumer Protection, and WorkSafe.
This is especially useful if you want to verify licensed electrical or plumbing contractors working on the job.
In WA electrical work must be done by qualified people with the right electrical licence, and the regulator specifically urges consumers to use the online licence search to verify electrical contractors before engaging them.
Plumbing work can also only be done by appropriately licensed trades. The WA plumbing licence pages include search tools to check licensed plumbers and contractors.
Licensing and insurance are two separate checks
This is where many clients stop too early.
Checking registration tells you whether the contractor is legally entitled to contract for the work. It does not automatically confirm what insurance is in place for your project.
That means the next step is to ask for evidence of insurance, not just a verbal assurance.
For residential work, check home indemnity insurance where it applies
For residential building work in WA, home indemnity insurance (HII) is a very important protection. It’s one of the most important checks to make.
The WA Government states that if residential building work valued over $20,000 is to be undertaken, the builder must take out home indemnity insurance in the name of the owner before accepting payment or commencing work.
You should not assume the policy exists just because the builder says it will be arranged. Ask to see the evidence.
For commercial work, ask for the relevant insurance documents
Commercial projects do not usually rely on the same home indemnity framework used for standard residential building work. Because of that, the more practical approach is to ask the contractor to confirm the insurances relevant to the project and provide evidence that they are current.
The exact mix can vary from project to project. Depending on the type of job, this may include things such as:
- public liability insurance
- workers compensation coverage
- contract works or construction insurance
- plant or subcontractor-related cover where relevant
What should you look for in the insurance documents?
When a contractor provides proof of insurance, check the basics carefully.
Look for:
- the insured name— it should match the contracting entity
- the policy period— it should be current
- the type of cover— it should be relevant to the work
- and whether the document appears to be an actual certificate or policy evidence, rather than an informal email summary
If there is any mismatch between the contract name and the insured entity, ask the contractor to explain it clearly before proceeding.
Who is responsible for checking this?
The contractor is responsible for holding the right registration and insurance. But the client is entitled to verify it. In practical terms, this is not about distrust. It is about reducing risk before the project starts.