Back in June, the Australian Institute of Building Surveyors (AIBS) released a member communique warning that “the situation around Professional Indemnity (PI) Insurance has reached crisis point” with “a real possibility that without government intervention… private building surveyors may be forced out of work and the construction industry across Australia will be significantly impacted”. The situation arose after some surveyors had failed to gain PI because of risks surrounding flammable cladding, which has been widely used across Australia’s high-rise, unless cladding-related claims are excluded.
Today, The ABC reports that the rise in PI costs, arising from the flammable cladding debacle, has driving some building surveyors out of business, which is beginning to halt construction projects:
Surveyors are having difficulty renewing their professional indemnity insurance because of the building industry’s flammable cladding crisis…
