Insurance hikes stifle industry

Professional indemnity insurance for fire engineers, certifiers, and other building and construction industry professionals is set to rise substantially, as many insurers pull out of the Australian market.

The increase is fuelled by a lack of capacity among domestic and international insurers, including Lloyd’s of London.

The use of non-performing building products and potentially flammable cladding, plus litigation against industry professionals, are likely responsible for the reduced capacity among insurers, leading to increased premiums, higher deductibles and tightened terms and conditions.

Increased insurance costs, coupled with higher superannuation payments and Covid-related cost-of-business pressures, will likely impact on the entire building and construction industry and Ferm, like other industry professionals, will be forced to review base costs.