• Brokers are increasingly being drawn into contract and procurement discussions earlier in projects.
• Poorly allocated contractual obligations can result in uninsured losses and disputes.
• Claims involving documentation failures, coordination breakdowns and workmanship issues are common.
• Underwriters reward disciplined governance and stronger risk management practices.
• Softer market conditions are creating opportunities to negotiate broader and more resilient cover, not just lower premiums.

New Zealand’s construction liability market is becoming more demanding for brokers and insureds alike as rising project pressures, tighter regulation and increasingly layered delivery models reshape client risk profiles.

According to Rebecca Moller, Group Broking Manager, Financial and Professional Risks (Finpro) at Gallagher, brokers are now expected to provide strategic guidance across contracts, governance and operational risk rather than focusing solely on insurance placement.

Large projects, multiple contractors

Moller says many of the pressures now emerging across the sector stem from the way risk is distributed across large projects involving multiple contractors, consultants and suppliers.

“Construction businesses are operating in an environment where responsibilities can become blurred very quickly,” she says.

“When delivery delays, material shortages or design changes occur, disputes often follow because parties have not always fully understood where liability ultimately sits.”

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