With the collision of macro-economic conditions and the ongoing impact of COVID19 on supply chains, blowouts in time and costs are a having a significant impact on the construction industry in regional Australia.

In the H1 2022 edition of the Business Insurance and Risk Market update report we provide insights on how a perfect storm of circumstances is leading to:

  • price increases on materials
  • backlogs on completing work
  • increases in cost of labour
  • scarcity of skilled trades

All of these factors have serious implications for property owners and the scope and terms of their insurance cover.

In the report we explore how sums insured and indemnity periods should be adjusted to reflect the new reality and business interruption insurance is essential, and how local advice and representation can positively affect claims outcomes.

Other topics include:

  • Placement — why making a case for cover to local insurers is important.
  • Claims — the impacts of weather events on supply chain delays and claims inflation.
  • Directors and officers' liability — new capacity brings lower premiums but also risks for the unwary.
  • Disability sector — the factors making insurance for this sector hard to find.
  • Environmental, social responsibility and governance (ESG) — with an increased focus on ethical business practice insurers are scrutinising accountability.
  • Cyber security — how businesses need to meet the escalation of the risk environment.

Download the report to learn more

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Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient's industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers' control.

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