Insurers urged to reassess risks under Australia’s engineered stone ban
Insurers urged to reassess risks under Australia’s engineered stone ban | Insurance Business Australia
Construction & Engineering
Insurers urged to reassess risks under Australia’s engineered stone ban
Legislative changes expected to impact insurance claims
Construction & Engineering
By
Roxanne Libatique
Crawford’s CRD Building Consultants & Engineers (CRD), which specialises in assessing residential and commercial constructions, has urged the Australian insurance industry to closely review the recently enacted ban on engineered stone.
The ban, effective from July, introduces several key exceptions and details that impact insurance claims involving construction materials.
What insurers should expect from engineered stone ban
Michael Sander (pictured), engineering technical lead at Crawford’s CRD division, emphasised that insurers should be aware of the nuances within the new regulations, particularly since cost differences between natural and engineered stone can be significant.
“Claim costs can easily skyrocket if assessors and builders don’t fully understand the new rules and assume it’s a total blanket ban,” he said.
He said that while the ban restricts many uses of engineered stone, minor repairs and modifications to already installed products are still allowed. For example, repairing cracks with liquid resin or drilling holes in benchtops for new installations like power points or sinks is permitted under the updated rules.
However, these repairs must first receive approval from the relevant state’s workplace health and safety authority. A Safe Work Method Statement is also required and should be provided to insurers handling such claims.
Why did Australia ban engineered stone?
Sander noted that Australia’s move to regulate engineered stone follows concerns about the risks of exposure to silica dust, which can be released during cutting and polishing.
Long-term exposure to silica dust has been linked to silicosis, a lung disease. New regulations, effective from Sept. 1, also include materials containing as little as 1% crystalline silica. Each state and territory is managing the transition, which will continue until the end of 2024.
Sander further noted that when replacing engineered stone benchtops, insurers and builders must ensure compliance with the silica limits.
While materials containing more than 1% crystalline silica are banned, alternatives like Evo Stone, Meganite, and Corian are available and are often less expensive than natural stone options such as granite or marble.
Increased PI risks for engineers
Meanwhile, engineers in New South Wales are facing increased regulatory obligations due to new requirements that could significantly impact professional indemnity insurance.
The Practice Standard and Registration requirement for engineers, part of the Design and Building Practitioners Act 2020 (DBP Act), is expected to be enforced in early 2025. These changes aim to raise building standards and consumer confidence in the wake of several high-profile construction industry challenges in recent years.
The NSW government delayed the implementation of the registration and standard requirement to allow further revisions after receiving industry feedback.
Engineers Australia welcomed the delay, raising concerns that the registration system focused too narrowly on building consulting work and did not adequately distinguish between individual engineers and their employing businesses.
One of the significant changes introduced under the DBP Act is the requirement for engineers to ensure their designs comply with the National Construction Code and fall within their area of expertise. Engineers will also be required to collaborate with other designers and provide necessary guidance to building practitioners throughout a project’s development.
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