If you have a business, you do not operate in a static world. You are well aware that there are many moving parts, not only to your business, but also in the community and the economy on a larger scale which you operate within.

This means that sometimes your business risk and insuring your risk changes.

On the 14 June 2017 there was a tragic fire at Grenfell Tower in London, England. Many people perished in awful circumstances. It was quickly identified that the fire in the building had spread quickly due to cladding on the outside of the building which had a high flammability content.

As a part of the wider community concern at ensuring another tragedy doesn’t occur, and to reduce future business liabilities, insurers have focused on reducing potential exposure to other buildings and suppliers which may use unsafe cladding or processes in their projects.

Combustible cladding to be banned in Victoria (click to view video)

Within each Australian State and Territory they have their own building control and statutes which operate within the National Construction Code. There are also building certifiers and surveyors which also have responsibility for ensuring work on buildings meet standards. In addition to this, there is also some legal precedence from previous court cases which cloud whose final responsibility a potential problem may be in any future liability cases.  Currently in Australia it is currently unknown how many buildings may have unsafe cladding and there are proposed amendments to be made to regulations.

As can be seen from the above, it is an uncertain world for ascertaining risk in relation to a cladding business, so what happens to your insurance if are a company which installs cladding?

In many cases insurers are declining to cover cladding companies or they are increasing premiums exponentially to cover any potential liability. As your insurance broker, Mitchell Insurance Management, work together with you as a company to fully understand all of your business processes and exposure points putting together proposal submissions for the insurers. This gives the insurer clarity around your risk, in turn helping you as a company. How so? Knowing critical points can help the insurer correctly rate your risk, such as:

  • Who chooses the cladding product, eg are you an installer or are you responsible for the choice of cladding?
  • Who is responsible for analysing the material data sheet for the cladding and the bonding and ensuring it meets all statutory regulations?
  • Who is responsible for installing the cladding?

At each of these points there is potential risk for liability exposure. The above scenario is an example of what Mitchell Insurance Management recently covered off in a proposal submission implemented for a valued client with his cladding activities. Mitchell’s are very pleased to have secured strong cover and with terms for the client at the most appropriate premium, again in what is a challenging climate for cladding businesses.

Whilst appreciating the above pertains to the ‘cladding’ industry, these same efforts are applied across the diversified suite of Mitchell Insurance Management clients. We want to know your business, we want to know the scope of activity, we do this in order to give our clients the strongest options available to protect their business. No business is alike, and you shouldn’t assume that ‘one size fits all’ when it comes to a policy. Different risks equal different ratings, therefore talk to a professional who can position your business correctly.

If you would like to talk through your insurance and how it will work together in relation to your business activities, feel free to call Mitchell Insurance Management on 02 6113 0478 or contact us. We would enjoy the opportunity to talk through your potential business risks and propose appropriate solutions that fit and could support your business going forth.

The information contained in this blog provides only a general overview of subjects covered. It is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Insureds should consult Mitchell Insurance Management regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Mitchell Insurance Management cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk.