Building ministers call for consultation with insurers to tackle the cladding issue
Published 06 September 2018
Australia’s building ministers are calling for a national approach to the combustible cladding issue in reaction to increases in insurance premiums and tightening of professional indemnity insurance terms affecting the construction sector.
Bill Johnston (WA), Craig Laundy (NSW), Matthew Keane (NSW), Rene Hidding (Tas), Stephen Knoll (SA), Mick Gentleman (ACT), Mick de Brenni (Qld) and Richard Wynne (Vic) met at the Building Ministers’ Forum (BMF) in Adelaide on 10 August 2018, where it was decided to adopt a consultative approach to managing rising costs and quantifying risk associated with aluminium composite panel cladding (ACP).
The forum also identified building surveyors and certifiers as being particularly in need of access to professional indemnity insurance cover and directed the building ministers’ senior officers’ group (SOG) to consult with the Building Regulators’ Forum (BRF) to work with insurers and other industry stakeholders to develop an Australia-wide framework.
Other actions covered included
updates to building codes
guidelines for responding to fires where cladding is present
reporting on the allocation of responsibility for costs of rectification of non-compliant cladding.
The BMF will reconvene in December.
“This is a solid initiative for the BMF,but December seems to be a long way away for them to reconvene," said Irvine. "The issues are happening right now, with the insurance market not being particularly supportive for the little guys."
High-hazard property risks are explored in greater detail in the latest Gallagher Market Overview Report,Trust & Data: Into the Breach, which was published on 30 July. The report is available as a digital download.