The Australian Property Institute (API) has announced a joint initiative to develop a professional standards scheme to cap the occupational liability of certifiers.

Announced last week, the project with the Association of Accredited Certifiers (AAC) aims to help the industry overcome the professional indemnity crisis, which has seen insurers stop offering exclusion-free policies to building practitioners.

“To operate effectively, we need a robust industry with high professional standards and an accessible professional indemnity market that act together to protect consumers,” API CEO Amelia Hodge said.

“The API is committed to helping to improve outcomes for all parties in any way we can, and we are therefore very pleased to be in a position to partner with the AAC to develop a professional standards scheme.”

The institute will undertake the initiative through the Australian Property Institute Valuers, an offshoot established in 2010 to administer its PSS for members who undertake property valuations.

A professional standards scheme caps the civil liability or damages that professionals who take part may be required to pay if a court upholds a claim against them, according to the Professional Standards Council (PSC).

To qualify for such a scheme, which is a legal instrument, associations must commit to monitor, enforce, and improve the professional standards of accredited members.

“[The PSC’s] powers are meta-regulatory in nature and encourage the occupational associations to self-regulate the conduct of their members in a robust manner and establish rigorous consumer protection mechanisms,” API says in a statement to insuranceNEWS.com.au.

“As all participating occupational associations have vigorous ongoing reporting obligations to the PSC and are required to continuously improve their standards and regulatory processes, professional standards schemes are at the heart of the associations’ continuous improvement cycle.”