Insurance brokers are principally viewed as 'Licensed Distributors' of this statutory class of insurance. 

Distributors who wish to undertake HBCF insurance business are required to execute Distribution Deed with at least one of the Scheme Agents (QBE and/or RBUA).

They must also have a minimum of 10 builders or generate $200,000 Gross Written Premium nationally if they wish to undertake builder clients HBCF insurance business.

Larger distributors can enter into wholesaling arrangements with those who do not meet the above criteria, however, they remain responsible for the actions of those distributors who enter into such wholesaling arrangements.

Distributor's Role

The Distributor is required to communicate clearly and in a timely manner the hbcf's requirements and decisions. They are required to assist in obtaining information that is necessary for Scheme Agents to conduct risk assessments and to monitor and manage ongoing risks.

The Distributor is to avoid unnecessary disruption to projects due to commencement and identify such concerns to the Scheme Agent as required.

Appropriate advocacy by Distributor does not include attempting to influence decisions of Scheme Agents by reference to the overall and/or particular business relationships between the Distributor and Scheme Agent.

In providing communication to builder clients, including any requests for further information, the Distributor should always ensure they have a clear understanding of the reasons behind the requirements in order to allow effective communication.

The Distributor must also disclose all matters material to an eligibility assessment in their possession and knowledge. They should not knowingly advocate to builders to seek a lesser amount of eligibility, which may later require an increase.

During the eligibility assessment process, the scheme agent may be required to deal directly with the builder where clarity or further particulars are required. As a courtesy, they should copy the distributor into their communications with the builder.

The current list of approved distributors is available here.