Without industry recognition, integrators must work without attuned insurance to their trade. Daniel Williamson finds out what insurance options integrators have been working with and when a suitable option might be available.   

If you’re a smart home integrator in Australia, getting the right insurance can be next to impossible. In the eyes of insurers and regulators, your job technically doesn’t exist. In the eyes of others, you’re just an electrician. Both are wrong.

So, what are integrators to do? At the moment, the industry is being forced to take out insurance under unrelated categories, most commonly electrical work, despite the majority not even being licensed to do such works.

It’s an issue that CEDIA has paid close attention to. CEDIA regional development consultant in Australia and New Zealand, Paul Skelton, wants to see an advancement in industry recognition which will help integrators navigate key business challenges such as insurance.

“The core issue is a mismatch between how integrators work and how insurance products are classified. Many integrators are insured under categories like ‘electrician’ or ‘electrical contractor’ because there’s no dedicated classification for ‘smart home integrator’,” he says.

“If they don’t hold an electrical license, which many don’t because not all integration work requires one, then insurers will likely deny claims or void policies. This exposes integrators, even if they’ve been operating in good faith. You also won’t get your money back.”

It’s a systemic problem. Integrators are being forced to fit into insurance products that were never designed for their trade.

“The problem extends to how integrators engage licensing bodies, regulators and even clients. It’s not limited to a small subset of the industry,” Paul says.

Across the Tasman, things look a little different.

Automation Associates Limited is a New Zealand-based custom commercial and residential automation systems design and installation company. Its managing director, Brendon Reid, who works as an integrator in New Zealand, says the integration industry and the attendant insurance scene are a little like the wild west.

Like Australia, the role of an integrator isn’t a recognised occupation. Brendon says integrators are unlicensed and unregulated, and there is no such thing as the open cabling standard. But he isn’t complaining.

“It’s not an issue, it’s fantastic. We can go anywhere, do anything and there is no regulation to control the industry,” he says.

“It’s great for the good-faith operators, as we can deliver whatever is needed for the client. Although saying that, this also permits cowboy operators, which poses risks.”

New Zealand integrators, he explains, carry six key types of business insurance – including public liability and professional indemnity – but they’re all fairly broad.

“They are very generic policies. None of them are industry-specific to being an electrician or an integrator,” he says.

But that freedom does come at a cost.

“Because it’s not recognised as an industry as such, there isn’t a lot of training being done. There’s been a skills shortage in the industry since I started the company 30 years ago,” Brendon explains.

Meanwhile in Australia, the lack of recognition continues to hinder more than just training. It also stymies efforts to create a dedicated insurance category for integrators.

CEDIA made a formal submission to the Australian and New Zealand Standard Classification of Occupations (ANZSCO) review process to have ‘smart home integrator’ recognised as its own occupation. The submission was rejected.

“We are now in a position that requires at least 300 integrators to label themselves as an integrator in the next Census, which is in August 2026. If we don’t achieve that, we will likely never have an occupation code. Without that, we can’t fix the insurance issue,” Paul says.

Paul reiterates that the primary reason there is no standalone insurance category for integrators is the lack of formal recognition: “Without a clear occupational definition, insurers don’t have a framework to underwrite against.

“The industry is also highly varied; some licensed integrators touch power, some don’t; some do security, others don’t; some work in construction, others retrofit only. That complexity makes it hard to create a one-size-fits-all policy without a foundational classification.”

Wired by MJD is a family-owned electrical contracting and integration company specialising in home automation, custom integration and AV services. The company’s general manager, Hailey Daly, emphasises this even further: “This has a huge impact on the industry on so many levels and in my opinion is probably the single most important aspect to change.

“Without change, it is going to be extremely difficult to implement any improvement, like insurance for integrators in Australia.”

As a result, integrators are left to operate in a grey area. Hailey explains that integrators are in a highly vulnerable position and are potentially leaving themselves and their clients without protection.

“Clients could have unfinished projects and integrators might not be able to afford to repurchase stock if insurance claims are denied. And the end users definitely won’t want to pay for something they already paid for,” she says.

“Also, if an integrated system or subsystem is damaged, caused by the integration or undetermined, this could potentially bankrupt a business if this is not covered by the insurer,” she says.

Both Brendon and Hailey admit that they haven’t heard any stories from other integrators who’ve struggled to get insurance or had claims denied, although Hailey notes that it’s only a matter of time. And when it happens, it will devastate the industry and negatively impact its credibility.

So, what’s being done?

CEDIA is currently working with an insurance provider in Australia and New Zealand to conduct a targeted review of the smart home integration sector. If successful, it hopes it will lead to the development of an appropriate insurance category that doesn’t require an electrical license if the work doesn’t warrant one.

“The goal is to identify whether there’s a viable pathway to create an insurance product tailored specifically to the work integrators do. This includes assessing the types of services offered, typical risk profiles and areas where current policies fall short,” Paul says.

Until things change, integrators are left to find their own workarounds. Paul advises them to be transparent with insurers about the scope of their work, ensure that it’s documented in their polices and to avoid electrician-specific insurance if they don’t hold a license.

“Don’t take on tasks that require a license unless you or someone on your team holds it. Document everything. Partner with licensed trades where needed and get legal and insurance advice specific to your business,” he says.

“Clarity is key.”