PI supply collapse for Building Surveyors & Certifiers
Building Surveyors & Certifiers are facing potential deregistration as cladding crisis continues across the country.
Building Surveyors/Certifiers are facing an uncertain future as their Professional Indemnity Insurance supply collapses. The last known remaining insurer in the market offering compliant PI cover announced it will cease to write the profession from July 3, 2019. This latest blow is due in particular to the combustible cladding crisis and has the potential to completely shut down parts of the building industry.
PI Insurance free from ACP/Cladding exclusions is required by law in every state. The removal of this insurance will see firms unable to carry out work and cause extensive delays to thousands of projects across the country.
Both the State and Federal Governments have been engaged in ongoing discussions to come to a resolution about combustible cladding and related law suits that are yet to be concluded.
While discussions are ongoing, insurers have had no choice but to consider their own existence given the potentially massive cost of removing combustible cladding, as well as the lawsuits that have arisen out of horrific disasters like the Grenfell Tower tragedy in 2017.
As it stands, unless an alternate solution is found, those with renewals from the 3rd of July 2019 will be unable to obtain compliant cover.
What are Coverforce doing to help?
As construction industry specialists, Coverforce have been consulting industry groups and insurance providers on this issue for many months.
We are working closely with a key stakeholder on a solution that would see supply assured for most affected businesses. Our focus is on both long-term sustainability for providers and meeting legislative requirements for the profession.
For advice surrounding this issue, please contact Nathan Brown or Andrew Ferguson at Coverforce. Updates will be released on the Coverforce website and social media channels as new information is available.
The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.
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