Many Organisations and Business Owners in the Construction industry have watched closely as a potential crisis unfolds as insurers are finding it increasingly difficult to provide cover in an industry that requires Government intervention to reduce the overall risk of building.
The construction industry could come to a grinding halt due to the sharp increase in insurance premiums. Small through to large operators are feeling the sting when it comes to insurance renewal time with policy increases or in some cases they can’t secure coverage at all.
Last week the Victorian State Government begun to try and address this issue by excluding some forms of cladding from insurance policies. Click for the official Victorian State Government Gazette regarding this exemption.
The Victorian State Government has recently offered to pay for the replacement of certain types of combustible cladding from privately owned buildings, an issue to be addressed by the soon to be launched Cladding Safety Victoria. However, this is not the case for other states in Australia.
Impact on many Business Owners
“I’ve been in close communication with my broker Aleks Blazevski, from Alliance Insurance Broking regarding this issue. It’s a crucial part of any business knowing I can do my job with the knowledge that in the case of an issue that my risk is covered.”
Last month the Australian Institute of Building Surveyors warned that its members may be forced out of work due to the lack of insurers willing to offer coverage to surveyors due to cladding issues. They have been joined by other industry bodies such as the Australian Institute of Architects, Association of Consulting Architects and the Owners Corporation Network in demanding reform to improve the quality of construction and better protect consumers.
The building surveyor, fire engineer and Architect were all found partly responsible for a Docklands cladding fire in 2014 that cost $6 million in repairs. That decision is currently being appealed. This incident shows the risk to all parties involved in the construction industry.
Apartment Owners Stranded
Unfortunately, there are many apartment owners at the other end of the scale who are stuck in ‘stranded assets’ because their buildings are covered in flammable materials.
Are you in the building industry or an apartment owner in Victoria with questions regarding your insurance policy?
The insurance brokers at Alliance Insurance Broking Services are ready to help you navigate your way through this issue. Insurance Brokers are dealing with Insurers everyday and will be able to provide you with up to date information when it comes to your policy.
Steven Alessio is the Sales and Marketing Manager of the Alliance Group offering Business Insurance, Fleet Management, Motor Finance and Life & Income Protection solutions for businesses and their owners. Contact Steve today for your tailored business solution…