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Consulting Matters Protecting your business
Most in the engineering profession will ensure they comply with the highest standards expected of a professional, taking responsibility for their actions and purchasing significant limits in their insurance and the broadest level of coverage. However, they will continue to be dismayed by those who undercut their pricing and continue to cut corners in their professional practice including when it comes to the procurement of insurance.
The legislation has been designed to rectify systemic problems in the NSW building industry, however we believe this provision leaves open the possibility that many consumers will continue to be exposed to unscrupulous building practitioners/engineers, bringing the professions into disrepute. Most in the engineering profession will ensure they comply with the highest standards expected of a professional, taking responsibility for their actions and purchasing significant limits in their insurance and the broadest level of coverage. However, they will continue to be dismayed by those who undercut their pricing and continue to cut corners in their professional practice including when it comes to the procurement of insurance. Without a legal minimum level of cover, consumer protection will be eroded, and the ability of practitioners to exist on a level playing field will be diminished. Insurers are also concerned regarding the introduction of a Statutory Duty of Care in the D&BP Act. Whilst premiums can cater for future works, the legislation applies retrospectively, creating a totally unknown risk that is extremely difficult for insurers to quantify. This is resulting in blanket exclusions appearing in policies that remove any cover for liability which is only created by this new Statutory Duty of Care. Whilst the approach of Christmas, a new year and the introduction of a Covid-19 vaccine is cause for celebration, we are unable to say the same about this new legislation. Should you desire assistance to secure your professional indemnity insurance, please call 1800 077 933. Chris Bovill BRIC To the extent that any of the above content constitutes advice, it is general advice without reference to your needs or objectives and therefore cannot be relied upon. Before acting on the above information you should obtain advice specific to your needs. Chris Bovill is the founder and Managing Director of Bovill Risk & Insurance Consultants Pty Ltd (BRIC) and has been arranging professional indemnity insurance for engineers since 1994. BRIC are specialist professional indemnity insurance brokers who have arranged PI insurance for thousands of engineers.
