Insurance Council explain 'crisis of confidence' in construction sector

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This article, published in details more of the reasons behind the challenges of construction professional indemnity insurance and what can be done to rectify the issues. If you’d like to know more or have questions, speak to us now.

The Insurance Council of Australia (ICA) has told an NSW inquiry into building standards why insurers have developed a “crisis of confidence” in the construction industry – and what can be done to bring them back to the table.

Submissions to the Public Accountability Committee inquiry into the regulation of building standards, building quality and building disputes have now closed.

ICA says in its submission that insurers, like the community, “assumed that buildings are indeed constructed to meet or preferably exceed…minimum standards”.

However, it says this assumption has now been proven false.

“A number of high profile compliance failures in NSW, coinciding with use of non-conforming and potentially dangerous external cladding on modern and some refurbished buildings, has led to a crisis in confidence for insurers who provide professional indemnity coverage for building professionals, and increasingly for insurers who insure the physical buildings once construction has been completed.”

This has led to exclusions in professional indemnity insurance products for certifiers. They have removed cover for works relating to cladding or non-conforming building products.

8 August 2019
  • Allianz Insurance
  • Liberty International Underwriters
  • Vero
  • Medisure Indemnity Australia
  • The Underwriters Agency
  • Chubb
  • Procover
  • QBE
  • Sterling Insurance
  • CGU
  • Dual