The Australian infrastructure insurance market has
hardened significantly over the past 18 months, alarmed by a run of
major claims, natural disasters and the Covid-19
pandemic.
As a result, Australian contractors are facing one of the most
difficult insurance markets in recent memory – particularly,
but not only, in relation to professional indemnity insurance.
It is therefore time for participants in the infrastructure
sector to consider their position and take steps to minimise their
potentially increased project risk exposures.
Symptoms of the hardening insurance market are already widely
felt. Owners and contractors attempting to renew or enter into
policies of insurance are being offered terms proposing policy
limits at less than full reinstatement value, seemingly regardless
of geographic spread, lower sub-caps, more exclusions, higher
deductibles or excesses, and higher premiums. In many cases the
market is unwilling to provide coverage at desired levels
