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Risk in Context

Is your business up to date with new NSW laws on combustible cladding?

09 January 2019

Under the new laws, owners of certain buildings with combustible cladding are now required to register their building with the NSW Government through a NSW Cladding Registration portal.

For buildings occupied before 22 October 2018, the deadline for registration is 22 February 2019. Owners of new buildings will be required to register their building within four months of the building first being occupied.

The requirements may apply to the following types of buildings (both new and existing) of two or more storeys (above the ground):

  • Residential apartment buildings;
  • Other types of residential buildings where people sleep, such as;
    - hotels,
    - boarding houses,
    - backpackers accommodation,
    - student accommodation;
  • Aged-care buildings
  • Hospitals and day surgeries (and any associated single dwellings within the building);
  • Public assembly buildings such as;
    - theatres,
    - cinemas,
    - schools and
    - churches.

The new law may apply if the buildings have external combustible cladding made of the following materials:

  • metal composite panels, including products that consist of aluminium, zinc, or copper outer layers and a core material; or
  • insulated cladding systems including systems comprised of polystyrene, polyurethane, and polyisocyanurate.

In addition to the change in legislation, we expect insurers, particularly for Property and Professional Indemnity classes, will be seeking the following additional information as part of renewal data going forward;

  • A completed Audit or a plan in place to assess the exposure and compilation of the results in the form of a register.
  • This register should identify what buildings have aluminium composite panel (ACP) cladding, and include whether the building is compliant to the current relevant state requirements and if so how i.e. by manufacture testing or certification by independent engineer/ surveyor.
  • If the ACP does not meet the current relevant state requirements, the register should set out how the ACP has been tested for suitability to show that it is otherwise compliant.
  • Where ACP is subsequently found to be non-compliant, what is the process and time frame for mitigation and removal.

This legislation is the next stage in the NSW Government’s response to the fire safety risks posed by external wall cladding. For more information about these changes, visit the NSW Department of Planning & Environment website or contact your Marsh representative.

DISCLAIMER:  This update and any recommendations, analysis, or advice provided by Marsh (collectively, the ‘Marsh Analysis’) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. LCPA No. 18/0082.  

Zaheen Singh

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.