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Building groups look to improve NSW certifiers’ PI cover

The NSW Government’s Building Professionals Board has questioned building certifiers about claims against their professional indemnity (PI) insurance.

“The… board is working with our stakeholder certifier associations to develop a better insurance scheme for certifiers that is sustainable, affordable and offers improved cover,” it says. “Data about claims is vital in this work.”

The aim is to support private and local council certifiers who “feel vulnerable to unjustified claims and the rising cost of insurance”.

The Association of Accredited Certifiers (AAC) and Australian Institute of Building Surveyors are represented on the board’s insurance committee and are surveying their members.

The AAC says it want to “hear about successful and unsuccessful claims, and from those who’ve had no claims”.

It proposes cutting the timeframe for launching litigation under the NSW Environmental Planning and Assessment Act from 10 years to six and acting to reduce the likelihood of false and misleading cases.

In a submission to an inquiry earlier this year, the AAC argued certifiers are often held responsible for defective building work simply because they are the only practitioners with PI insurance and are therefore “the last man standing”.

“This causes great strain on the profession, causing some certifiers to reconsider their career options and leading some to give up their accreditation and leave the industry.”

The cost and availability of PI insurance for certifiers is a serious issue, the submission says.