05 Mar Christian Lingga discusses the importance of disclosure at the Safe Cladding, Buildings and Façade Innovation Summit
Christian Lingga discusses the importance of disclosure at the Safe Cladding, Buildings and Façade Innovation Summit
On 26th of February, an insurance panel hosted as part of the Safe Cladding, Buildings and Façade Innovation Summit in Sydney.
The panel, titled; “The current landscape for insurance of the building and construction sector” discussed the coordination required between underwriters, insurance brokers, strata managers and owners corporations to minimise gaps in cover for risks containing non-conforming building products.
Amongst the panel was CRM Brokers’ Strata Broking Manager, Christian Lingga, who highlighted reporting obligations and risk management strategies that can assist Owners Corporations (OC). Lingga spoke of the value of having a well-informed OC. When the necessary information and documentation about the non-conforming building products can be submitted to the insurer, the more accurately the risk can be underwritten.
“Why would the insurer take up the risk where non-conforming products are at play, yet not being disclosed? This simply adds needless uncertainty on what is being asked to be insured” commented Lingga.
Lingga discussed the consequences of the duty of disclosure covered in the Strata Schemes Management Act. Commenting that section 27 covers fraudulent disclosure which could lead to the reduction of the Insurer’s liability on a claim, or allow the Insurer to avoid the contract altogether. Section 54 details how the Insurer’s liability may be reduced or excluded due to some act by the insured, which prejudiced the Insurer’s liability.
Our experience is that most buildings with cladding are being offered renewal terms, when full disclosure has occurred and appropriate action plans are in place. The importance of speaking to your trusted insurance broker about the insurance policy and potential implications of non-disclosures cannot be understated.
At CRM Brokers, where we have been provided with the necessary information relating to non-conforming cladding, we have been able to find cover for the building where others find it really challenging.
The Summit brings together key government policymakers and building and construction industry professionals from across the nation to develop strategies to mitigate the risk of defects, finance remediation and build confidence in the sector.
Christian Lingga is CRM Brokers’ Strata Broking Manager and was a finalist for Specialist Broker of Year at the Insurance Business Australia Awards 2019.
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. CRM Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of CRM Brokers.