Why Claims Are Rising

Construction sites carry an inherent risk of injury and property damage, but claim severity has grown in recent years. Contributing factors include:

• Labour shortages and tight deadlines that extend repair times and can increase incident frequency.

• Complex subcontracting chains where contractual responsibility is unclear.

• Regulatory enforcement of workplace health and safety standards, with courts showing less tolerance for non-compliance.

Even small errors — a scaffolding collapse, faulty wiring, or poor site supervision — can trigger large third-party claims.

Subcontractor Liability: A Growing Concern

The heavy reliance on subcontractors is creating a particular challenge. When contracts do not clearly allocate responsibility, disputes can arise over who is liable for injuries, defects, or damages. Brokers can play a vital role in ensuring clients review subcontractor agreements and carry adequate coverage and limits to avoid uninsured exposures.

Site Safety Obligations

Regulators are tightening expectations around incident reporting, safety training, and compliance audits. Demonstrating strong safety protocols is not only good practice — it can directly influence premium outcomes and coverage terms. Brokers who encourage clients to document and evidence these measures often secure more favourable terms.

How Brokers Can Add Value

• Highlight gaps: Ensure subcontractor liability is explicitly covered and not assumed.

• Encourage proactive safety: Position site audits, toolbox talks, incident reporting and compliance documentation as cost-saving tools.

• Explore specialist facilities: With many insurers limiting appetite in construction, MGAs like Scope remain critical in providing tailored liability solutions.

Scope’s Role

At Scope Underwriting, we specialise in providing Public & Products Liability cover that responds to the unique risks of construction projects. From small contractors to Tier 1 builders, our appetite includes complex risks where subcontractor management and safety protocols are essential. By working closely with brokers, we deliver robust cover backed by practical risk management support.

Looking Ahead

As the construction sector continues to grow, liability risks will only intensify. Brokers who guide contractors through clear safety obligations and subcontractor exposures will be best placed to protect clients — and to build lasting value in a competitive market.

Contact Scope Underwriting: enquiry@scopeuw.com.au