The British Insurance Brokers’ Association (BIBA) has expressed support for a government plan to look into an indemnity insurance scheme for building practitioners.

The Government announced last week it would start looking into the idea as part of a wider effort to bring an end to unsafe cladding in residential buildings, a situation that has contributed to the indemnity insurance crisis facing the building industry.

“[The] ministerial announcement is a very positive development and we will continue to work with [the Ministry of Housing Communities and Local Government] to help deliver a targeted, state-backed indemnity scheme to address the continuing insurance challenges in this area,” BIBA said.

BIBA in its 2021 Manifesto states the Government needs to “create a new temporary [professional indemnity insurance] solution to unlock the delay in making residential cladded buildings safe”.

In the government announcement last week, it says it will work closely with industry to design an appropriate indemnity scheme. Further details on the scheme, including eligibility and the claims process, will be provided in the coming weeks.

The government’s five-point plan announced last week includes picking up the tab for the removal of unsafe cladding for all leaseholders in high-rise buildings.