Lacrosse judgment widens cladding insurance exposure for construction

Australian Financial Review | Sunday 17 March 2019


Governments may have to step in to bridge a combustible cladding-related insurance gap that is widening in the wake of the Lacrosse judgment.

Insurers last year started raising premiums and inserting cladding-related policy exclusions for professionals such as building surveyors and certifiers, but last month's judgment finding building surveyor Gardner Group, fire engineer Thomas Nicolas and architect Elenberg Fraser liable for the use of combustible non-compliant cladding on the Lacrosse residential tower in Melbourne, has accelerated the process.