Providing cover for construction

Neil Fleming, portfolio manager for construction at QBE, explained how modern methods such as modular builds and sustainable materials are reshaping risk profiles. 

While beneficial, he warned that the repetitive nature of manufacturing can bring unique challenges.

“We have seen some manufacturing defects that can be quite minor – things like issues with shower trays for a bathroom pod. If you’ve got 500 pods being put in situ in a construction project, and these are identified when the building is almost complete, this can lead to significant, costly challenges that are really tricky to remedy on-site,” Fleming said.

Helen Middleton, construction engineering and renewable energy portfolio lead at Intact, formerly known as RSA, agreed: “We aren’t under any illusion that this is changing the risk landscape for insurers. I think it is a case of understanding and getting into the detail very early on and being engaged early.”

Martin Parker, head of construction underwriting at Markel, echoed the importance of early involvement with construction projects as methods evolve. 

“From a modular build perspective, there is a much reduced site risk but the risk is then transferred to the assembly, transport and handling,” he said.

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