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Why Victoria Is Different
The Building and Plumbing Commission, or BPC, is now Victoria’s building and plumbing regulator. It took over functions previously managed by the Victorian Building Authority, although some services still use existing VBA systems during the transition.
Victorian licensed plumbers are subject to prescribed minimum insurance requirements under Ministerial Orders.
This is different from choosing a public liability limit because a customer or builder requested one. The regulatory insurance must meet the applicable Victorian requirements.
A plumber can hold more insurance than the prescribed minimum. For licensing purposes, the policy and evidence supplied must meet at least the relevant requirements.
Registered and Licensed Plumbers Are Not the Same
Victoria distinguishes between registered and licensed plumbers.
A registered plumber can perform plumbing work within the classes for which they are registered, subject to the conditions applying to that registration. A licensed plumber has additional responsibilities and may issue plumbing compliance certificates for work within their licence classes.
The insurance evidence requirements discussed here apply specifically to licensed plumbers. The BPC treats registered and licensed plumbers differently when dealing with Certificates of Currency.
The two terms are often used as though they mean the same thing. They do not.
What Must Be on the Certificate of Currency?
Before a plumbing licence can be issued, and when maintaining or renewing a licence, the licensed plumber must provide acceptable evidence of insurance.
The BPC requires a Certificate of Currency rather than a quote, invoice or general offer of insurance.
The certificate needs to include:
The full legal name of the licensed plumber
The insurer’s name
The policy number
The period for which the policy is current
The prescribed notation confirming compliance with the applicable Ministerial Order
The full legal name is easy to miss. A certificate showing only a company or trading name may not be enough if the individual licensed plumber is not named. The practitioner holds the licence, even where the business operates through a company.
For a broader explanation, see What Is a Certificate of Currency for Plumbers - And Why Builders Ask For It.
Certificate of Currency vs Compliance Certificate
These are separate documents.
A Certificate of Currency is issued by an insurer or broker. It provides evidence that a policy is current when the certificate is issued.
A plumbing compliance certificate is issued by a licensed plumber. It certifies that specified plumbing work complies with relevant standards, codes and regulations.
One relates to the insurance policy and the other relates to the plumbing work. Whilst the names are similar, their purpose is not.
Which Work Requires a Plumbing Compliance Certificate?
The BPC states that a licensed plumber must issue a compliance certificate for particular work, including:
Plumbing work valued at $750 or more, including labour, materials, appliances and fixtures
Work on below-ground sanitary drains
Installation, relocation, replacement or conversion of a gas-using appliance
Installation, modification or relocation of consumer gas piping
Construction, installation, relocation, alteration or replacement of cooling towers
The certificate must generally be lodged and provided within five days after the work is completed.
Because the insurance framework is connected with licensed work and compliance certificates, knowing when one is required is part of understanding the insurance obligation.
What Does the Required Insurance Cover?
The prescribed insurance is broader than a certificate simply saying, “public liability.”
The BPC’s public summary identifies areas such as:
Public liability arising from the licensed plumber’s activities or completed work
Rectification of defective plumbing work that does not comply with applicable standards
Certain consequential financial loss arising from defects or non-completion
Certain non-completion events
Certain liabilities connected with Australian Consumer Law
The BPC also identifies a minimum of $5 million for public liability and completed-work cover for any one occurrence, with separate requirements applying to claims associated with domestic plumbing compliance certificates.
The detailed response still depends on the Ministerial Order, policy wording, facts and legal liability. Required insurance does not guarantee that every complaint, defect or loss will be paid.
For the wider liability concepts, see Public Liability Insurance for Plumbers.
How Long Does the Protection Continue?
For plumbing work requiring a compliance certificate, the BPC states that the insurance must cover the period from when the licensed plumber agreed to perform the work until six years after the certificate was issued.
If no compliance certificate was issued, the prescribed period can run for six years after the plumber stopped performing the work.
This does not mean the same annual policy document simply stays active forever. It means the insurance arrangement must provide the prescribed protection for the required period, subject to the Order and policy terms.
What It Does Not Automatically Cover
Meeting Victoria’s licensing insurance requirements does not mean every business risk is covered.
Separate insurance questions may arise for:
Tools and portable equipment
Utes, vans and trailers
Stock and materials
Personal accident or income replacement
Workers compensation
Cyber incidents
Business premises
For example, insurance that complies with the plumbing Ministerial Order does not necessarily cover tools stolen from a ute.
Different assets and risks may sit under separate policy sections or policies. Check out our Guides for more information.
A Small Detail That Can Hold Up a Renewal
A plumber operates through Smith Plumbing Pty Ltd and holds an individual Victorian plumbing licence.
The policy is purchased in the company name. The Certificate of Currency shows “Smith Plumbing Pty Ltd” but does not name the licensed practitioner. The business has insurance.
The certificate may still fail the regulator’s evidence requirements because the licensed plumber’s full legal name is missing. The problem is not necessarily the absence of insurance. It is that the document does not prove compliance in the required form.
Key Takeaways
The Building and Plumbing Commission (BPC) is Victoria’s building and plumbing regulator.
Victorian licensed plumbers are subject to prescribed insurance requirements under Ministerial Orders.
Registered and licensed plumbers have different roles and insurance evidence requirements.
Type B gasfitting is covered by a separate Ministerial Order.
A Certificate of Currency must name the licensed plumber and include prescribed details and notation.
A Certificate of Currency and a plumbing compliance certificate are different documents.
The prescribed insurance includes more than ordinary public liability but does not automatically cover every business asset.
Small document errors can delay licence issue or renewal.
Frequently Asked Questions
Does every Victorian plumber need the same insurance?
No. Requirements depend on whether the person is registered or licensed and on the licence classes held. Type B gasfitting is subject to a separate Ministerial Order.
Is ordinary public liability insurance enough?
Not necessarily. The policy and Certificate of Currency must meet the applicable Victorian Ministerial Order requirements.
Can the certificate show only the company name?
The BPC states that the licensed plumber’s full legal name must be included. A company name alone may not satisfy the evidence requirement.
Is a Certificate of Currency the same as a compliance certificate?
No. The insurer or broker issues the Certificate of Currency. The licensed plumber issues the plumbing compliance certificate for qualifying work.
How much public liability cover is prescribed?
The BPC’s summary identifies a minimum of $5 million for public liability and completed-work cover for any one occurrence. Other limits and requirements also apply.
Does the required insurance cover tools and vehicles?
Not automatically. Tools, portable equipment and commercial vehicles may involve separate policy sections or policies.
