Christchurch City Council has won a reprieve after mutual liability trust fund Riskpool agreed to delay withdrawal of its professional indemnity and public liability insurance for building consents.

Following a meeting between council officials and mutual liability trust fund Riskpool, the company now says it will withdraw cover from August 10, not immediately, as first indicated.

The crisis began when the council lost its International Accreditation New Zealand approval to be a building consent authority, over concerns it was not meeting the requirements of the building code.

Councillor Helen Broughton says it is “disappointing” that the council will lose the cover next month, but “it was a positive meeting, which helped clarify the position”.

The council says it is working to have its accreditation reinstated, and it will continue to talk to Riskpool about future coverage.

Riskpool is also preparing a proposal for cover of claims arising from all other council activity.