Construction industry leaders have warned the sector could grind to a halt if state governments don't take action on the building certifier insurance crisis.

Representatives from the different Master Builders Association met in Canberra on Wednesday to discuss the issue, which has intensified in the past month.

According to the Australian Institute of Building Surveyors, the last remaining provider of exclusion free Professional Indemnity insurance policies will no longer guarantee this coverage from July 2, 2019, meaning building surveyors in NSW, Queensland and Victoria who are unable to obtain an exclusion-free PI policy will not meet requirements for registration in those States. 

At a glance:

• Members of Master Builders Australia have gathered in Canberra to discuss the building certifier insurance crisis.
• The Australian Institute of Building surveyors believes the last remaining provider of exclusion free Professional Indemnity insurance policies will no longer guarantee this coverage from July 2, 2019.
• According to Master Builders Australia, up to 30 per cent of insurance renewals for building certifiers and surveyors may not be renewed as early as July.

The situation stems from insurers elevating risk ratings on cladding affected buildings in the wake of fires such as London's Grenfell disaster.

Master Builders Australia CEO Denita Wawn said up to 30 per cent of insurance renewals for building certifiers and surveyors may not be renewed as early as July.

Related Reading: Master Builders' response to Four Corners' flammable cladding report

“The leader of Master Builders Associations from around the country are gravely concerned," she said.

"All governments to come together now to manage what has become a risk for the whole industry.

“The problem is already causing delays to building projects across the country and will only get worse as more insurers withdraw from the market."

Master Builders Australia is calling for the establishment of a national pool of qualified engineers to sign off high-risk components, as well as a working to deliver options within six months for funding the rectification of existing buildings with combustible cladding.

The association also wants state governments to allow for temporary licence exclusions for combustible cladding specific to aluminium composite panels and expanded polystyrene.

Ms Wawn said Master Builders Australia wrote to Building Ministers in April seeking action ahead of the July deadline.

“Master Builders around the country are also calling for governments to speed up implementation of recommendations in the Shergold-Weir Building Confidence report to improve access to and the reliability of regulatory requirements for the building and construction sector,” she said.

Click here to view the latest update from the Australian Institute of Building Surveyors.

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