Home / Regulatory & Government / NSW sets PI deadline
7 October 2019
The NSW Government intends to lift the interim measure that allows registered certifiers to hold professional indemnity (PI) insurance with conditions.
The mid-2020 deadline was made in a regulatory impact statement linked to the government’s draft proposals to strengthen the certification system and conduct of certifiers.
Certifiers in the state must have exclusion-free PI policies but the requirement was lifted when Landmark Underwriting, then the last remaining provider of the cover with no exemptions, stopped doing so.
The Government has previously stated the temporary move will last no longer than a year.
“The amendment is a short-term, urgent action to avoid a situation in which the unavailability of PI insurance prevents certifiers from operating,” according to the regulatory impact statement.
“It will be removed [in] mid-2020 with the expectation that other reforms and changes in the market dynamics will have improved the operation of the PI insurance market by then.
“NSW Fair Trading is closely monitoring the market to ensure that there are no adverse outcomes for consumers or certifiers.”
Governments at federal and state levels have vowed to work together to reform the embattled building industry, which sparked the current PI impasse.
An options paper setting out alternative insurance options and a pathway for professional standards is in the works.
Last week the NSW Government launched a consultation into its proposed reforms of the certification system.
Closing date for submissions is October 28.
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