Protek Building Surveying Services of Launceston will officially shut its doors this Friday, after being caught up in the professional indemnity insurance chaos affecting the sector.
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Sole trader Phil Connors, who employs seven staff, said he decided last Friday to close his 19-year-old business on the advice of his accountant and insurance broker.
"I'm shell-shocked - like being next to an explosion. It came so quick and I had to make so many major decisions in such a short time. It's a disaster for me personally."
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Mr Connors said his insurance broker advised him last Friday to cease trading due to the risk associated with his proposed new professional indemnity insurance policy.
In a move long warned of by building surveyors, insurance companies are hiking PI premiums to try and claw back losses caused by an under-regulated building industry.
Mr Connors' premium went from $25,000 to $80,000 and his excess jumped from $5000 to $50,000.
He said he had informed all his customers and authorities as it was the ethical thing to do. However all Monday his staff had been dealing with irate clients 'banging on the counter' wanting their money back.
Some would be able to get their building permit, and others would have to see their local council, which is the permit authority.
Other building surveyors might charge up to $650 to check the risk of taking on his unfinished jobs, he said.
Mr Connors estimated his firm's closure would leave about 600 unfinished jobs, which he would send to the relevant permit authority around the state.
I sent a letter to CBOS this morning. I haven't heard a word from them. I think it's shameful.
- Protek Building Surveying Services Phil Connors
"If there's more around Australia who are feeling like I am right now, there will be a dearth in the land, and that could hold up the building industry. It's monumental."
Mr Connors said he'd sent a letter to the state building regulator the Consumer, Building and Occupational Services on Monday morning and hadn't heard from them.
"It said as of Friday July 19, I will no longer hold professional indemnity insurance." Building surveyors in Tasmania must have PI insurance to operate.
"I haven't heard a word. I think it's shameful. I haven't heard anything from them, so we're running a bit blind."
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