Caravan Insurance Online :: News
SHARE

Share this news item!

NSW Court Decision Heightens Builders' Liability for Defects

Understanding the Impact of the Pafburn Case on Construction Liability

NSW Court Decision Heightens Builders' Liability for Defects?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In a landmark decision, the New South Wales Court of Appeal has significantly altered the landscape of construction liability, particularly concerning builders' responsibilities for defects.
The case, known as Pafburn, has removed the previously relied-upon proportionate liability defence, thereby increasing the accountability of builders and developers for construction defects.

Historically, under the proportionate liability framework, builders and developers could distribute liability among various parties involved in a project, such as subcontractors and suppliers. This approach allowed them to limit their financial exposure by attributing portions of the blame to other entities. However, the Pafburn ruling has effectively dismantled this defence mechanism.

The court's decision underscores that breaches of the statutory duty of care, as outlined in the Design and Building Practitioners Act 2020 (DBP Act), result in non-delegable liability. This means that builders and developers are now fully responsible for rectifying defects, regardless of whether subcontractors or other parties contributed to the issues. Consequently, they must bear the entire cost of remediation and cannot deflect portions of liability onto others involved in the construction process.

This ruling has profound implications for the construction industry in New South Wales. Builders and developers must now exercise heightened diligence in overseeing all aspects of their projects, ensuring that every phase meets the required standards to mitigate potential defects. The absence of the proportionate liability defence necessitates a more proactive approach to quality control and risk management.

Furthermore, the Pafburn decision highlights the critical importance of comprehensive professional indemnity insurance. With the increased liability exposure, construction professionals must reassess their insurance coverage to ensure it adequately protects against the heightened risks. This may involve consulting with insurance advisors to adjust policies in line with the new legal landscape.

In summary, the Pafburn case marks a significant shift in construction liability law in New South Wales. Builders and developers are now held to a higher standard of accountability for defects, necessitating more rigorous project oversight and robust insurance strategies to navigate the evolving regulatory environment.

Published:Tuesday, 13th Jan 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Surge in Mental Health Claims Reshapes Australia's Life Insurance Landscape
Surge in Mental Health Claims Reshapes Australia's Life Insurance Landscape
26 Jan 2026: Paige Estritori
Australia's life insurance sector is witnessing a significant transformation, with mental health conditions emerging as the predominant cause of Total and Permanent Disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health-related TPD claims now constitute nearly one-third of all such claims, highlighting a profound shift in the factors leading Australians to exit the workforce permanently. - read more
Australian Life Insurers Report Significant Profit Growth in FY25
Australian Life Insurers Report Significant Profit Growth in FY25
26 Jan 2026: Paige Estritori
The Australian life insurance industry has reported a remarkable financial turnaround in the fiscal year 2025, with earnings more than doubling to $360 million, according to the latest figures from the Australian Prudential Regulation Authority (APRA). This 210% increase in profit after income tax marks a significant recovery from previous years' losses and underscores the sector's resilience and adaptability. - read more
Australia's General Insurance Industry Achieves Record $6.1 Billion Profit in 2024
Australia's General Insurance Industry Achieves Record $6.1 Billion Profit in 2024
26 Jan 2026: Paige Estritori
Australia's general insurance sector has reported an unprecedented after-tax profit of $6.1 billion for the year 2024, according to KPMG's General Insurance Insights report. This figure is three times higher than the five-year average of $2 billion, marking a significant milestone in the industry's financial performance. - read more
Australian Insurers' $6.1 Billion Profit Sparks Affordability Concerns
Australian Insurers' $6.1 Billion Profit Sparks Affordability Concerns
26 Jan 2026: Paige Estritori
In 2024, Australia's insurance industry reported an after-tax profit of $6.1 billion, a significant increase from the five-year average of $2 billion. This surge in profitability is attributed to substantial premium hikes and a year with fewer severe weather events. - read more
Rising Insurance Premiums Prompt Calls for Industry Reform
Rising Insurance Premiums Prompt Calls for Industry Reform
26 Jan 2026: Paige Estritori
Recent data indicates a significant rise in insurance premiums across Australia, with home insurance premiums increasing by 16% on average over the past year. Some insurers, such as Kogan, RAC, and Honey, have raised rates by over 30%, leading to growing concerns about affordability for consumers. - read more


Caravan Insurance Articles

The Importance of Reviewing Your Caravan Insurance Policy Annually
The Importance of Reviewing Your Caravan Insurance Policy Annually
A caravan insurance policy is essential for protecting your investment against various risks, such as theft, damage, and accidents. However, your insurance needs may change with time, and your current policy might not offer adequate coverage anymore. That's why it's essential to review your policy at least once a year and make the necessary changes to ensure it still meets your requirements. - read more
Essential Pre-Trip Checks for Your Caravan: Don't Hit the Road Without Them
Essential Pre-Trip Checks for Your Caravan: Don't Hit the Road Without Them
Setting off on a caravan trip is an exciting adventure, but before you hit the open road, it's essential to ensure your caravan is in top-notch condition. Performing pre-trip checks can make the difference between a memorable journey and a disastrous one. - read more
Top 5 Things to Look for When Choosing Caravan Insurance
Top 5 Things to Look for When Choosing Caravan Insurance
Caravan insurance is an important investment for anyone who owns a caravan, whether it's a touring caravan or a static caravan. Caravan insurance is designed to protect you financially in the event of theft, damage, or accidents. However, not all caravan insurance policies are created equal, and it's essential to choose the right policy to ensure you're adequately covered and get the best value for your money. - read more
Why You Should Shop Around: The Benefits of Caravan Insurance Comparison
Why You Should Shop Around: The Benefits of Caravan Insurance Comparison
When it comes to enjoying the great outdoors, few things offer the freedom and flexibility of a caravan. Whether you're embarking on a weekend getaway or a cross-country adventure, ensuring that your mobile home is properly insured is a critical consideration. Caravan insurance provides financial protection against a range of potential risks, from theft and accidents to natural disasters, ensuring peace of mind as you explore Australia's breathtaking landscapes. - read more
The Ultimate Guide to Comparing Caravan Insurance Quotes
The Ultimate Guide to Comparing Caravan Insurance Quotes
Caravan insurance is designed to protect your financial interests when you own a caravan. Just like any vehicle or property insurance, it provides coverage for damage, theft, or accidents. Given the unpredictable nature of travel and the investment involved in a caravan, having the right insurance is crucial for peace of mind. - read more


Your free Caravan insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Deductible:
The amount you must pay out-of-pocket for expenses before your insurance company covers the remaining costs.