Protek, a Launceston firm that employs seven staff, will close on Friday due to the premium for the business going from $25,000 to $80,000 and excess from $5000 to $50,000.

The closure of Protek alone will leave about 600 unfinished jobs.

Insurance companies are hiking up the premiums to try and claw back losses caused by an under-regulated building industry.

The news of the direct effects of this, at times, 600 per cent hike comes on the back of the Launceston council issuing a press release on Monday detailing the number of planning applications.

The council said 646 planning applications worth $211.2 million in the 2018-19 financial year had been approved.

The previous year there were 658 planning applications and the year before that 594.

One of the backbones of the economy for both Launceston and Tasmania is the investment in infrastructure - both private and public.

There are huge projects slated for Launceston and surrounds, and also the once simple dream of building your own home.

The housing crisis requires a brick and mortar response. Affordable housing is one of the key aspects of improving the situation, which means building houses.

The impact of this exponential increase in insurance premiums will have an impact on the local building industry. That is without question.

The Launceston Chamber of Commerce executive officer also agrees.

Neil Grose said the cost would be a factor, but also time delays to have buildings certified for occupancy could stall the growth in the building sector.

These potential delays is not something Launceston or the state can afford.

All politicians should be working hard to find a solution or risk devastating impacts.