The Master Builders Association has launched its first business venture in Western Australia.
The Master Builders Association has launched its first business venture in Western Australia.
MBA Insurance Services, a joint venture of all state associations, will provide insurance products including home warranty insurance, professional indemnity, public liability, commercial defects, contract works, workers’ compensation and tradespersons insurance covering tools, factories and motor vehicle insurance.
MBA director Michael McLean said the MBAIS would operate as brokers and forge close ties with insurance underwriters.
“Our bulk buying power will enable us to establish more reasonable criteria, costs and risk management,” he said.
“A prime mover behind us establishing MBAIS has been the problem for our members of obtaining insurance on reasonable terms.
“For too long builders have been experiencing long delays in processing insurance applications and paying for products not necessarily best suited to their needs.”
There are currently three insurers offering services to the construction industry, with a fourth soon likely to enter the market, according to Mr McLean.
“This is an improved situation from when HIH collapsed, but we would like competition to increase to give builders more choice,” Mr McLean said.
“We still have problems with the state’s compulsory housing indemnity insurance system and believe it needs to be reviewed.
“Housing indemnity insurance sounds great in theory but in practice it has placed unreasonable and unnecessary restrictions on builders to meet their clients’ needs.
“This has caused delays to homes being built, and in many cases work being turned away from smaller to larger builders, particularly in regional areas.”
The Coalition has agreed to review the current system of indemnity insurance, and Mr McLean said he would like a bipartisan approach to the issue.
