Design and Building Practitioners Act 2020 – implications for insurers
Originally Published by Scott Kennedy and Sally Morshead on Tuesday, July 14, 2020 9:54:49 AM
As a result of a number of catastrophic failures of newly constructed residential developments in short succession, the NSW government has now implemented strict measures to regulate and control the building and construction industry. Relevantly, some of these provisions are retrospective (for the 10 year period preceding June 2020) and impose statutory liability where no such liability existed.
It is important for insurers to understand the significant insurance implications of the Design and Building Practitioners Act 2020 (NSW) which we have summarised in a table available for download here.
At this time, there have been no test cases on the application of the legislation. However, given the retrospective application of some of the provisions, it is important that insurers familiarise themselves with how the legislation applies, and that risks are priced on this basis.