Professional indemnity insurance for building industry
In 2019 the Queensland government amended the Building Regulation 2006 to permit private building certifiers, for a limited time, to be licensed while holding professional indemnity insurance (PI insurance) with certain cladding exclusions. These changes were in response to the challenges being faced by certifiers in acquiring compliant professional indemnity insurance.
The issue of finding PI insurance that is both compliant and affordable remains current. These issues are further compounded by the impacts of the COVID-19 pandemic.
Amendments to the Building Regulation 2021 extend the exemption period for a further 12 months, until 30 June 2023. Private building certifiers who have certain external cladding related exclusions on their PI insurance policies will be able to renew or apply for a licence with the exclusion until 30 June 2023.
If a licence has been renewed or a new licence issued on, or prior to 30 June 2023 with PI insurance with an external cladding related exclusion, the certifier can continue to work for the duration of the licence (the full 12 month period), with the PI insurance exclusion. However, upon renewal after the exemption period ends, the certifier will need to hold the prescribed PI insurance.
In 2019, the Queensland Government engaged Pricewaterhouse Coopers (PwC) to conduct an in-depth and evidence-based analysis of the PI insurance market to understand the factors that are influencing the market, both in Queensland and nationally.
This report analysed the:
- factors influencing the PI insurance market
- impacts that the current PI insurance market has on PI insurance, and the building and construction industry.
The Queensland government continues to work with industry and other jurisdictions, including the Australian Government, to facilitate improved building outcomes and increased confidence in the building and construction industry.
- Last updated:
- 18 September 2020