Michael Stivala has moved into the insurance brokerage business while the developers’ association he heads criticises the government for not introducing mandatory general insurance coverage for licensed contractors.

Stivala, whose main line of business is property development and rentals, snapped up shares in an insurance brokerage business in April.

The Malta Developers’ Association (MDA) has in the past weeks slammed a “weak and ineffective” contractor licensing law for omitting mandatory insurance cover from the licensing regime.

Introduced two weeks ago, the new law requires all demolition, excavation and construction contractors to have a valid licence by 2025.

When contacted, Stivala, who presides over the MDA, said that, given his role, he is “fully aware and responsible” to declare any type of conflict of interest during all internal discussions within the association as well as with the authorities and government representatives.

Situation vacant – Michael Stivala advertising a role in the insurance brokerage firm.

He said the MDA’s proposal for mandatory insurance coverage is about ensuring third-party rights and also ensuring contractors’ employees are covered by suitable insurance in case of an accident.

“We are proposing the above in everyone’s interest. There are many important factors why building contractors must have insurance.

“This is the position of all council members of MDA, who are all elected by our hundreds of members. This position was also agreed during several meetings with small, medium and large building contractors in Malta, who employs thousands of workers,” Stivala said.

Insurers have pushed back at the proposal, saying there is no such thing as an annual insurance policy for contractors to cover all risks.

Adrian Galea, director general of the insurance association of Malta, said that each project presents a different risk and, therefore, insurers need to consider this when issuing a policy.

“The contractor will need to spell out the risks of a project to an insurer, who will then issue a policy based on the information. Only then can works on the project begin.

“The risk of building a high-rise block is very different to building a terraced house or a garage,” he said.

The insurance brokerage company Stivala holds shares in – Central Insurance Brokers – is a member of the Association of Insurance Brokers (AIB).

Last week, the AIB followed the developers’ association’s lead in criticising the “watered down” licensing provisions, saying they will likely lead to contractors not being adequately insured.