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Victoria drops cladding from PI requirements

All classes of engineers and other building professionals in Victoria will be allowed to operate with cladding exemptions on their professional indemnity (PI) insurance policies from next week.

A PI cladding exemption has been in place since last July for the state’s building surveyors and inspectors, who must hold such cover without any restrictions.

Planning Minister Richard Wynne says the “short-term fix” will stay until a solution to the PI crisis is found. The long-running issue between insurers, building professionals and governments came to a head last year when British insurer Landmark, the last issuer of restriction-free policies, pulled out of the local market.

NSW and Queensland have also made similar moves for building practitioners who are normally required to hold exemption-free indemnity covers.

The ministerial order signed by Mr Wynne will come into effect on February 15 and apply also to all classes of draftspeople, architects and quantity surveyors.

“We’re bringing other building professionals into line with surveyors and inspectors to ensure their registration isn’t affected and they can continue to work,” Mr Wynne says in a brief statement to insuranceNEWS.com.au.