Changes to Certifiers’ PI Insurance coverage

15 August 2019

Following the government’s announcement in July, the Regulation has now been changed to allow building certifiers to have an exclusion on their professional insurance (PI) indemnity policy up until June 2021.

The exclusion can be for claims arising from external cladding made of a composite material.

Builders who use certifiers who have this exclusion will no longer be able to seek recourse from the certifier’s PI insurance should there be a problem with the use of an external cladding made from a composite material.

Insurers have been increasingly withdrawing from the market in the wake of the combustible cladding crisis; making this a necessary change to help ensure the future of private certification.

Queensland follows both NSW and Victoria who have similarly loosened the rules.

With the changes now in place, you need to check-in with your certifier to see how they are tracking for their PI insurance renewal: especially for any projects that are currently underway.

The scope of work that they are covered for and the amount that they are covered for could be changing.

The cost of insurance has also increased significantly so you may also have to plan for an increase in the cost of certification when costing your projects.

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