The Victorian Government plans to remove the requirement for commercial property builders to have defects insurance.

The change recognises that commercial property owners can manage their own building risks, it says.

A Department of Transport, Planning and Local Infrastructure spokesman told insuranceNEWS.com.au consultation with insurers has begun “with a view to removing these requirements later this year”.

Builders’ groups have welcomed the move, arguing the cover is unnecessary. Builders Collective National President Phil Dwyer says there have been no significant claims.

The Victorian Building Authority board has yet to appoint a member with substantial insurance expertise – a move announced in the Government’s domestic building reform strategy last May.

No timeframe has been given for the appointment, which is intended to increase awareness of the risk management environment.