❓ A WA parliamentary question addresses concerns about significant professional indemnity insurance increases for environmental consultants due to the Contaminated Sites legislation, seeking government intervention and clarification on legislative differences compared to other states. The Minister's response indicates that the legislation may not be the primary cause of the increases, and outlines actions taken to address the issue with the Insurance Council of Australia.
AnsweredQoN 2486Legislative Assembly
QuestionView source ↗
(1) What action is being taken to address the issue of professional indemnity (PI) insurance increases of up to 1500% being experienced by environmental consultants as a result of the Government’s Contaminated Sites legislation?
(2) How does Western Australia’s legislation differ from that in the other States?
(3) Is the Government contacting insurance companies and advising them that Western Australia’s legislation is different and hence they should set lower PI premiums for environmental consultants and other practitioners than in the other States?
(4) Will the Minister support the concerns of the Environmental Consultants’ Association and contact the Insurance Commission of WA and Hon Nick Griffiths, chair of a group examining PI and associated issues, advising that the Government’s legislation appears to be at least in part responsible for this problem?
(2) How does Western Australia’s legislation differ from that in the other States?
(3) Is the Government contacting insurance companies and advising them that Western Australia’s legislation is different and hence they should set lower PI premiums for environmental consultants and other practitioners than in the other States?
(4) Will the Minister support the concerns of the Environmental Consultants’ Association and contact the Insurance Commission of WA and Hon Nick Griffiths, chair of a group examining PI and associated issues, advising that the Government’s legislation appears to be at least in part responsible for this problem?
AnswerView source ↗
Answered
11 May 2004
Responded by
Minister for the Environment
Response time
70 days
Investigations undertaken by the Department of Environmental Protection (DEP) via contacting individual companies and the Australian Contaminated Land Consultants Association who specialise in contaminated sites, indicate that: where consultants are currently working in the field of contaminated sites, no insurance increases will occur as a result of the Contaminated Sites Act 2003 being proclaimed. The Act does not change the work of consultants – the technical aspects of the investigation and remediation of sites remains the same, with the minimum requirements being those presented in the DEP Contaminated Site Management Series of guidelines, which have been in place for a number of years; I understand that recently there has been an increase in insurance premiums for consultants, related to all of the disciplines in which they work, and is not specifically related to their work in contaminated sites; and where consultants may be moving into the field of contaminated site management from another discipline, such as flora and fauna surveys, or marine-based work, then some increase in insurance may occur, however, given my earlier comments this is unlikely to be as a result of the new regulation. I believe, in your question, you may be referring to insurance increases relating to the insurance required for Contaminated Site Auditors. I understand that insurance costs for Auditors are higher than those of normal consultants. (2) In relation to Contaminated Sites Auditors, the provisions in the WA Contaminated Sites Act 2003 differ from the equivalent legislation in NSW and Victoria. The State provides the “final sign-off” for sites via a Certificate of Contamination Audit. In NSW and Victoria*, the Auditors provide the “final sign-off” thus carrying more responsibility. (3) In December 2003, I wrote to Mr Darrel Cameron of the Insurance Council of Australia advising him of the differences between the WA legislation and the equivalent legislation in the other States, and asked him to consider these differences in relation to policy rates relevant to the environmental sector. Mr Cameron has not yet responded my letter.Mr Cameron responded on 23 April 2004 stating that insurers in WA are aware of the proposal for reduced exposure for auditors in WA, and that this will be considered in assessing WA risks as part of insurance applications once the Contaminated Sites Act 2003 is proclaimed. (4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
I understand that insurance costs for Auditors are higher than those of normal consultants. (2) In relation to Contaminated Sites Auditors, the provisions in the WA Contaminated Sites Act 2003 differ from the equivalent legislation in NSW and Victoria. The State provides the “final sign-off” for sites via a Certificate of Contamination Audit. In NSW and Victoria*, the Auditors provide the “final sign-off” thus carrying more responsibility. (3) In December 2003, I wrote to Mr Darrel Cameron of the Insurance Council of Australia advising him of the differences between the WA legislation and the equivalent legislation in the other States, and asked him to consider these differences in relation to policy rates relevant to the environmental sector. Mr Cameron has not yet responded my letter.Mr Cameron responded on 23 April 2004 stating that insurers in WA are aware of the proposal for reduced exposure for auditors in WA, and that this will be considered in assessing WA risks as part of insurance applications once the Contaminated Sites Act 2003 is proclaimed. (4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
(2) In relation to Contaminated Sites Auditors, the provisions in the WA Contaminated Sites Act 2003 differ from the equivalent legislation in NSW and Victoria. The State provides the “final sign-off” for sites via a Certificate of Contamination Audit. In NSW and Victoria*, the Auditors provide the “final sign-off” thus carrying more responsibility. (3) In December 2003, I wrote to Mr Darrel Cameron of the Insurance Council of Australia advising him of the differences between the WA legislation and the equivalent legislation in the other States, and asked him to consider these differences in relation to policy rates relevant to the environmental sector. Mr Cameron has not yet responded my letter.Mr Cameron responded on 23 April 2004 stating that insurers in WA are aware of the proposal for reduced exposure for auditors in WA, and that this will be considered in assessing WA risks as part of insurance applications once the Contaminated Sites Act 2003 is proclaimed. (4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
(3) In December 2003, I wrote to Mr Darrel Cameron of the Insurance Council of Australia advising him of the differences between the WA legislation and the equivalent legislation in the other States, and asked him to consider these differences in relation to policy rates relevant to the environmental sector. Mr Cameron has not yet responded my letter.Mr Cameron responded on 23 April 2004 stating that insurers in WA are aware of the proposal for reduced exposure for auditors in WA, and that this will be considered in assessing WA risks as part of insurance applications once the Contaminated Sites Act 2003 is proclaimed. (4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
(4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
* Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
I understand that insurance costs for Auditors are higher than those of normal consultants. (2) In relation to Contaminated Sites Auditors, the provisions in the WA Contaminated Sites Act 2003 differ from the equivalent legislation in NSW and Victoria. The State provides the “final sign-off” for sites via a Certificate of Contamination Audit. In NSW and Victoria*, the Auditors provide the “final sign-off” thus carrying more responsibility. (3) In December 2003, I wrote to Mr Darrel Cameron of the Insurance Council of Australia advising him of the differences between the WA legislation and the equivalent legislation in the other States, and asked him to consider these differences in relation to policy rates relevant to the environmental sector. Mr Cameron has not yet responded my letter.Mr Cameron responded on 23 April 2004 stating that insurers in WA are aware of the proposal for reduced exposure for auditors in WA, and that this will be considered in assessing WA risks as part of insurance applications once the Contaminated Sites Act 2003 is proclaimed. (4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
(2) In relation to Contaminated Sites Auditors, the provisions in the WA Contaminated Sites Act 2003 differ from the equivalent legislation in NSW and Victoria. The State provides the “final sign-off” for sites via a Certificate of Contamination Audit. In NSW and Victoria*, the Auditors provide the “final sign-off” thus carrying more responsibility. (3) In December 2003, I wrote to Mr Darrel Cameron of the Insurance Council of Australia advising him of the differences between the WA legislation and the equivalent legislation in the other States, and asked him to consider these differences in relation to policy rates relevant to the environmental sector. Mr Cameron has not yet responded my letter.Mr Cameron responded on 23 April 2004 stating that insurers in WA are aware of the proposal for reduced exposure for auditors in WA, and that this will be considered in assessing WA risks as part of insurance applications once the Contaminated Sites Act 2003 is proclaimed. (4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
(3) In December 2003, I wrote to Mr Darrel Cameron of the Insurance Council of Australia advising him of the differences between the WA legislation and the equivalent legislation in the other States, and asked him to consider these differences in relation to policy rates relevant to the environmental sector. Mr Cameron has not yet responded my letter.Mr Cameron responded on 23 April 2004 stating that insurers in WA are aware of the proposal for reduced exposure for auditors in WA, and that this will be considered in assessing WA risks as part of insurance applications once the Contaminated Sites Act 2003 is proclaimed. (4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
(4) Please refer to the above answer. * Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
* Victorian Auditors are also recognised in Queensland, Tasmania, South Australia, ACT and NT NSW Auditors are also recognised in ACT
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