{"data":{"allShapeableCollectionRecord":{"nodes":[{"data":{"id":"66fa0f9b399df18f9851bc23","name":"An interview with Scope Underwriting's Co Founder, Nick Vernon.","path":"/posts/an-interview-with-scope-underwritings-co-founder-nick-vernon","slug":"an-interview-with-scope-underwritings-co-founder-nick-vernon","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"A chat with Scope Underwriting's Co Founder &amp; CEO, Nick Vernon. Nick discusses what differentiates Scope within the construction underwriting market and why he and Co Founder Rob Higginson brought the agency to market. \n","text":"A chat with Scope Underwriting's Co Founder & CEO, Nick Vernon. Nick discusses what differentiates Scope within the construction underwriting market and why he and Co Founder Rob Higginson brought the agency to market. "},"content":{"text":"**Tell us a little about your journey to get to where you are today, launching an Underwriting agency.** \n\nLike a lot of people in the industry, I fell into insurance.  I quickly realized however that it is a very complex, interesting and rewarding sector to work in.  I moved into a construction insurance broking role around 15 years ago before spending the last 8 years as an underwriter for the same class. Having experience in both the broking and underwriting disciplines gives us a deep understanding of the challenges facing brokers but also the inherent risks that need to be considered by underwriters.\n\n**What made you decide it was time to launch your own brand? What have you set out to deliver to the market?** \n\nWe identified a widening gap in the market where insurer’s were either increasingly focusing on DIY options where brokers are forced to enter data into a system or at the other end, insurers only wanting to participate on large programs, often exclusively with large international brokers.  Our experience has shown that a lot of brokers are calling out for assistance and advice with a class of insurance that is quite specialized and in many cases too complex to simply enter into a system.  \n\n**Construction is a complex market, where do you see Scope sitting within the landscape?** \n\nWe see Scope sitting in the mid to larger tier of construction contractors where we can really add value through our experience of different risks and understanding of the insurance market.  This is where we can work with the broker to understand not only the risk but the appetite of the insured to either retain or transfer risk to an insurance program.\n\n**And product wise, what’s different about the Scope products?** \n\nOur core products are broad and are specifically designed for the construction sector, but they are also flexible.  We have a range of optional extensions that can enhance our core products when required by the Insured.  We want to ensure our insured is protected but we don’t want to expose their insurance program to exploitation by other parties resulting in increased insurance costs in future years.\n\n**How is Scope going to deliver a different/better experience for brokers?** \n\nWe are an independent underwriting agency, not owned by a cluster broking group, so brokers dealing with Scope can be confident that we are acting in their and their client’s best interest.  \n\nScope has been created with flexibility in mind, allowing customised solutions based on the specific needs of the broker’s clients. With a range of optional extensions and a focus on the construction sector, brokers can arrange highly relevant coverage, making them more competitive and valued by their clients.\n\n**What do you see some of the key differences are between running your own agency, rather than working within a corporate environment?**  \n\nRunning our own agency will allow us to concentrate on the critical role of compliance and best practices but also allow us to weave our personal values into every decision. Our commitment to sustainable underwriting goes beyond regulatory obligation—it's about ensuring that we build long-term relationships with brokers and security partners based on trust, responsibility, and mutual growth. That balance of best practice with the entrepreneurial spirit is what keeps us motivated daily.\n\n"},"title":null,"openGraph":{"description":{"plain":"A chat with Scope Underwriting's Co Founder &amp; CEO, Nick Vernon. Nick discusses what differentiates Scope within the construction underwriting market and why he and Co Founder Rob Higginson brought the agency to market. \n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1727676387/rhodian/image-asset/nick-article-header_image__Nick_Article_ssyfqi.webp","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1727676387/rhodian/image-asset/nick-article-header_image__Nick_Article_ssyfqi.webp","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1727676387/rhodian/image-asset/nick-article-header_image__Nick_Article_ssyfqi.webp"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1727676387/rhodian/image-asset/nick-article-header_image__Nick_Article_ssyfqi.webp","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1727676387/rhodian/image-asset/nick-article-header_image__Nick_Article_ssyfqi.webp"}}}},"type":{"id":"65d566d1f7d2d452331bf0b2","name":"Interview","slug":"interview","__typename":"PostType"},"published":"2025-02-06T06:28:23.97","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1675399443/rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"65d566ccf7d2d452331bf076","name":"Tessa Chirnside","slug":"tessa-chirnside","path":"/people/tessa-chirnside","organisation":{"id":"65d566c0f7d2d452331beffe","name":"Rhodian"},"linkedin":"https://www.linkedin.com/in/tessa-chirnside/ ","photo":{"id":"image_rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp","url":"https://res.cloudinary.com/shapeable/image/upload/v1675399443/rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"66fa1154399df18f9851bc33","name":"An interview with Scope Underwriting's Co Founder, Rob Higginson.","path":"/posts/an-interview-with-scope-underwritings-co-founder-rob-higginson","slug":"an-interview-with-scope-underwritings-co-founder-rob-higginson","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"Rob Higginson, Scope Underwriting's Co Founder &amp; CEO talks about bringing Scope to market with Co Founder Nick Vernon, key industry trends and the availability of construction capacity looking ahead.\n","text":"Rob Higginson, Scope Underwriting's Co Founder & CEO talks about bringing Scope to market with Co Founder Nick Vernon, key industry trends and the availability of construction capacity looking ahead."},"content":{"text":"**Tell us a little about your journey to get to where you are today, launching an underwriting agency.**\n\nI have spent most of my working career in the construction insurance industry, both broking and underwriting. I have been involved in managing portfolios of SME construction business, all the way through to involvement in significant government programs. \n\n**What made you decide it was time to launch your own brand? What have you set out to deliver to the market?**\n\nAfter spending over 15 years in the construction insurance industry, I saw an opportunity to establish a more specialized and innovative approach. Nick and I built Scope Underwriting so that we could use our experience to support brokers in managing this complex class of risk. At Scope Underwriting, we deliver independent, tailored insurance solutions backed by deep industry expertise, offering flexibility, exceptional service, and a commitment to solving even the most challenging risks.\n\n**What was the gap in the market you have set out to fill?**\n\nWe identified a gap in the Australian market, where many Insurers and Underwriting Agencies were either focusing on SME business through inflexible online portals, or solely catering to large Government and International programs for select multinational brokers. This leaves mid-market and SME brokers without the specialized support needed to build tailored insurance solutions. At Scope Underwriting, we aim to bridge this gap by providing all brokers and builders with the expertise, resources, and flexibility to craft insurance programs that meet their clients' unique needs.\n\n**And how do your products/approach achieve this?**  \n\nWe’ve built our product to adapt specifically to the unique requirements of each building project, ensuring that coverage is fully aligned with the actual risks involved. Unlike rigid, one-size-fits-all policies, our approach allows coverage to be adjusted up or down as needed, so builders aren’t burdened by paying for unnecessary protection. This flexibility ensures that builders only pay for the coverage that’s relevant to their project at any given stage, while also allowing them to scale up protection when the risk profile changes, providing both cost efficiency and comprehensive protection when it matters most.\n\n**What are some of the key industry trends you see effecting the construction insurance market in 24/25?**\n\nWe anticipate several key trends shaping the construction insurance landscape over the next couple of years. One is the potential increase in insurance capacity entering the market, which could lead to a softening of premiums, lower deductibles, and broader coverage options. However, despite this, the profitability of Australian Construction Liability remains a challenge, meaning the market may not soften as quickly as other lines. Additionally, the downturn in the residential construction market, driven by rising interest rates and lower housing demand, is likely to affect project pipelines . In contrast, increased government infrastructure spending, such as significant initiatives like the Western Sydney Airport development and Melbourne’s Suburban Rail Loop , will fuel activity in the sector. At Scope Underwriting, we’re committed to diligent underwriting practices, ensuring we identify profitable sectors while remaining responsive to these market shifts.\n\n\n**What are your views on the availability of capacity for construction over the next 12-18 months?** \n\nWhile additional capacity is slowly returning to the construction insurance market, it’s entering cautiously. As a result, we don't expect a rapid softening of market conditions. Insurers are still likely to take a conservative approach, with restrained line sizes and careful deployment of capacity. At Scope Underwriting, we remain focused on providing tailored, flexible solutions to ensure that brokers and builders can access the right coverage, even in a fluctuating market.\n\n\n"},"title":null,"openGraph":{"description":{"plain":"Rob Higginson, Scope Underwriting's Co Founder &amp; CEO talks about bringing Scope to market with Co Founder Nick Vernon, key industry trends and the availability of construction capacity looking ahead.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1727676443/rhodian/image-asset/rob-article-header_image__Rob_Article_uya2gc.webp","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1727676443/rhodian/image-asset/rob-article-header_image__Rob_Article_uya2gc.webp","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1727676443/rhodian/image-asset/rob-article-header_image__Rob_Article_uya2gc.webp"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1727676443/rhodian/image-asset/rob-article-header_image__Rob_Article_uya2gc.webp","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1727676443/rhodian/image-asset/rob-article-header_image__Rob_Article_uya2gc.webp"}}}},"type":{"id":"65d566d1f7d2d452331bf0b2","name":"Interview","slug":"interview","__typename":"PostType"},"published":"2025-02-06T06:29:15.35","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1675399443/rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"65d566ccf7d2d452331bf076","name":"Tessa Chirnside","slug":"tessa-chirnside","path":"/people/tessa-chirnside","organisation":{"id":"65d566c0f7d2d452331beffe","name":"Rhodian"},"linkedin":"https://www.linkedin.com/in/tessa-chirnside/ ","photo":{"id":"image_rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp","url":"https://res.cloudinary.com/shapeable/image/upload/v1675399443/rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"67a2aa6b10e0a6b5850f10ed","name":"The Importance of Detailed Incident Reporting and Early Notification to Insurers in Construction Projects","path":"/posts/the-importance-of-detailed-incident-reporting-and-early-notification-to-insurers-in-construction-projects-100","slug":"the-importance-of-detailed-incident-reporting-and-early-notification-to-insurers-in-construction-projects-100","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"In the construction industry, safety is paramount. Despite the best efforts to maintain a safe work environment, accidents, injuries, and near misses can occur. When these incidents happen, it's essential to have a robust process for recording and reporting the details. Accurate and timely incident reports not only help safeguard workers but also protect the financial interests of the business and ensure insurers can properly assess and mitigate risks.\n","text":"In the construction industry, safety is paramount. Despite the best efforts to maintain a safe work environment, accidents, injuries, and near misses can occur. When these incidents happen, it's essential to have a robust process for recording and reporting the details. Accurate and timely incident reports not only help safeguard workers but also protect the financial interests of the business and ensure insurers can properly assess and mitigate risks."},"content":{"text":"**Why Detailed Incident Reports Matter**\n\nWhenever an injury or close miss occurs on a construction site, it's crucial to capture all the relevant details in an incident report. This document serves as an official record of the event, and its accuracy is essential to understanding the cause, preventing future occurrences, and, if necessary, protecting the company in the event of litigation.\nAn effective incident report should include:\n\n•\tDate and time of the incident\n\n\n•\tDetailed description of what happened\n\n\n•\tWho was involved and any witnesses\n\n\n•\tImmediate steps taken to address the incident\n\n\n•\tWhat injuries were suffered\n\n\n•\tExact location of the incident\n\n\nBy maintaining comprehensive records, companies can demonstrate their commitment to safety and compliance with regulatory requirements. These reports form the foundation of ongoing safety improvements and can significantly reduce the likelihood of future accidents.\n\n**The Importance of Incident Registers**\n\nIncident registers are vital tools for tracking all reported injuries and close misses over time. They provide a holistic view of site safety and allow for trend analysis, highlighting areas where additional precautions or training might be necessary. Maintaining an up-to-date register ensures that no incident goes unnoticed, helping businesses proactively manage risks before they escalate.\n\n**Why Early Notification to Insurers is Critical**\n\nNotifying insurers as early as possible about on-site injuries is crucial for protecting the insured's interests. Early notification allows insurers to undertake investigations promptly while the details are still fresh, witnesses are accessible, and evidence is easier to gather. Delaying notification can lead to complications, such as witnesses moving to different states or countries, or simply not remembering the event as clearly years later. Early, detailed investigations provide insurers with the information they need to effectively manage the claim and mitigate potential liabilities.\n\nAdditionally, insurers need to understand the \"tail\" of risk—particularly in cases involving Worker to Worker recoveries, which may arise years after the injury occurred. Early notification and thorough investigation of incidents allow insurers to track the risk over time and avoid making punitive assumptions about future back-year performance. When insurers have a clearer picture of the incidents, they are more likely to take an optimistic view of the risk, leading to more favourable coverage terms and pricing.\n\n**Protecting Your Business and Insurers' Interests**\n\nFor construction companies, maintaining accurate, timely incident reports and notifying insurers early are critical steps in risk management. By ensuring that every incident is properly documented and investigated, businesses protect themselves from unnecessary litigation and help insurers assess risk with confidence. In the long run, this practice not only promotes a safer work environment but also leads to better insurance outcomes, ensuring that coverage remains both adequate and affordable.\n\nTake control of your construction site's safety and risk management by making detailed incident reporting and early notification to insurers a priority. It’s a small step that can make a big difference in protecting your business and workers alike.\n\n"},"title":null,"openGraph":{"description":{"plain":"In the construction industry, safety is paramount. Despite the best efforts to maintain a safe work environment, accidents, injuries, and near misses can occur. When these incidents happen, it's essential to have a robust process for recording and reporting the details. Accurate and timely incident reports not only help safeguard workers but also protect the financial interests of the business and ensure insurers can properly assess and mitigate risks.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1738723947/rhodian/image-asset/scope-post-article-100_image__iStock-1179153715_axgl1q.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1738723947/rhodian/image-asset/scope-post-article-100_image__iStock-1179153715_axgl1q.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1738723947/rhodian/image-asset/scope-post-article-100_image__iStock-1179153715_axgl1q.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1738723947/rhodian/image-asset/scope-post-article-100_image__iStock-1179153715_axgl1q.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1738723947/rhodian/image-asset/scope-post-article-100_image__iStock-1179153715_axgl1q.jpg"}}}},"type":null,"published":"2025-06-10T01:43:54.88","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"67ce436355fed2b0b8d1fc8c","name":"Why Construction Liability Policies Require a Unique Approach","path":"/posts/why-construction-liability-policies-require-a-unique-approach","slug":"why-construction-liability-policies-require-a-unique-approach","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"In the construction industry, liability exposure is complex and often involves multiple parties, from the project owner (Principal) to the contractors and various subcontractors. This complexity requires a different approach to insurance than the standard Broadform Liability policies used by businesses outside of construction.\n","text":"In the construction industry, liability exposure is complex and often involves multiple parties, from the project owner (Principal) to the contractors and various subcontractors. This complexity requires a different approach to insurance than the standard Broadform Liability policies used by businesses outside of construction."},"content":{"text":"Construction Third-Party Liability (TPL) policies are structured specifically to address the shared nature of risks on a project site. Let’s explore why they include multiple insured parties, subrogation (waiver) clauses, cross-liabilities clauses, and how this differs from more generalized Broadform policies.\n\n**Including Multiple Insured Parties**\n\nOne key distinction of Construction TPL policies is the inclusion of multiple insureds - typically the Principal, the Contractor, Superintendents, and all subcontractors. This is a requirement of most Australian Standard Contracts, such as AS2124, which states that the Public Liability policy must cover all parties with respect to their rights and interests.\n\nThe reason for this multi-party inclusion is simple: construction projects often involve multiple stakeholders working closely together, each of whom could be held liable for different aspects of the project. Covering all parties under a single policy is beneficial to the contracting party (the Principal) so they don’t need to individually litigate against each separate party who has contributed to a loss.\n\n**Why Subrogation Waivers Are Necessary**\n\nIn construction contracts, a waiver of subrogation is often included. This means that the insurer agrees not to pursue a recovery from one insured party against another insured party. This waiver is crucial in construction because it prevents potential legal disputes among the parties working on the same project.\n\nWithout this waiver, if a subcontractor causes damage, the insurer might seek compensation from the principal contractor or another subcontractor, creating a cycle of internal litigation that complicates the claims process and strains project relationships. By including a waiver of subrogation, the policy aligns with the collaborative nature of construction projects, maintaining harmony and enabling more streamlined claims handling.\n\n**The Role of Cross Liabilities Clauses**\n\nAnother distinguishing feature is the inclusion of cross-liabilities clauses. This allows each insured party to be treated as a separate entity, meaning that if one party makes a claim against another insured party under the same policy, the policy responds as though separate policies were in place.\n\nThis is essential because, in construction, the different parties (Principal, Contractor, Subcontractor) may have conflicting responsibilities, and claims could arise between them. A cross-liabilities clause ensures that the policy can cover such claims while keeping all parties protected without needing multiple policies.\n\n**The Impact of Australian Standard Contracts**\n\nThe structure of Construction TPL policies is largely driven by the obligations outlined in standard contracts, such as AS2124. These contracts require that insurance be in place to protect all parties involved in a construction project and ensure liabilities are clearly allocated. AS2124 specifies that the insurance must be taken out in the joint names of the Principal and Contractor, covering all subcontractors for their respective rights and interests.\n\nThis contractual requirement for shared insurance means that construction projects cannot rely on a simple Broadform Liability policy, which typically covers only one entity and doesn’t account for the intricacies of multi-party liability.\n\n**Conclusion**\n\nConstruction projects involve unique and shared risks across multiple parties, which is why standard Broadform Liability policies are inadequate for the sector. Specialized Construction TPL policies, tailored to meet the obligations under contracts like AS2124, are necessary to cover the full scope of liability and risk on-site.\n\nIncorporating multiple insureds, subrogation waivers, cross-liabilities clauses, and provisions for dual insurance contributions ensures that the complex web of responsibilities in a construction project is fully covered. This mitigates the risk of internal legal battles and safeguards all stakeholders from third-party claims.\n\nIf you’re looking for more insight into the tailored insurance needs of construction projects, we’re here to help guide you through the intricacies of Construction TPL coverage and how it can benefit your next project.\n"},"title":null,"openGraph":{"description":{"plain":"In the construction industry, liability exposure is complex and often involves multiple parties, from the project owner (Principal) to the contractors and various subcontractors. This complexity requires a different approach to insurance than the standard Broadform Liability policies used by businesses outside of construction.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1741570771/rhodian/banner/construction-workers-walking_image__iStock-1665925516_tehuww.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1741570771/rhodian/banner/construction-workers-walking_image__iStock-1665925516_tehuww.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1741570771/rhodian/banner/construction-workers-walking_image__iStock-1665925516_tehuww.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1741570771/rhodian/banner/construction-workers-walking_image__iStock-1665925516_tehuww.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1741570771/rhodian/banner/construction-workers-walking_image__iStock-1665925516_tehuww.jpg"}}}},"type":null,"published":"2025-06-10T01:44:07.84","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}},{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"67edd1aaf8060697ca11e8f2","name":"The Advantages & Disadvantages of a Principal-Arranged Insurance (PAI) Program","path":"/posts/the-advantages-disadvantages-of-a-principal-arranged-insurance-pai-program","slug":"the-advantages-disadvantages-of-a-principal-arranged-insurance-pai-program","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"A Principal-Arranged Insurance program (PAI), sometimes referred to as a “wrap-up”, Principal Controlled or Owner Controlled program, enables a principal or owner to take control of procuring the insurance for their project, covering all contracting parties for their respective rights and interests.\n","text":"A Principal-Arranged Insurance program (PAI), sometimes referred to as a “wrap-up”, Principal Controlled or Owner Controlled program, enables a principal or owner to take control of procuring the insurance for their project, covering all contracting parties for their respective rights and interests."},"content":{"text":"Typically, a PAI program will include Public & Products Liability, Professional Indemnity (for design elements), Contractors All Risk and increasingly Environmental Liability. At its simplest, PAI programs are straightforward; the principal or owner is responsible for purchasing insurance for the construction project that includes cover for all contractors and subcontractors involved.  Below we will investigate some of the benefits and possible disadvantages of PAI programs.\n\n## Benefits of a PAI program\n\n•\tMore control of the cost of the insurance program.  Not relying on others to arrange and ‘charge back’ the cost of insurance.\n\n•\tHelps to minimise or eliminate contractor tender markup as they no longer need to include ‘insurance costs’.\n\n•\tCertainty of Limits of Liability – contracts and subcontractors may have low Limits of Liability (e.g. $10m Public & Products Liability vs $20m that is required for the project). \n\n•\tCertainty of coverage that is tailored to the project – not relying on contractor and subcontractor policies that may be inferior leaving gaps in cover and therefore exposures for the principal or owner.\n\n•\tThe PAI administrator takes full responsibility for handling claims and safety initiatives, which may increase loss control objectives of all parties involved.\n\n•\tEnables coordinated medical treatment for injuries.\n\n•\tReduces the concern of contractors or subcontractors’ insurance lapsing or being cancelled.  The PAI program remains fully operative for the duration of the project.\n\n•\tPAI programs can provide coverage for investigation for work-related accidents and injuries, and defences against claims. This decreases the investigation’s legal costs.\n\n•\tCoverage brings all participants together as co-defendants in construction defect claims.\n\n•\tAggregates Limits of Liability are ‘ringfenced’ and not eroded by claims from other projects.\n\n•\tPAI program administrators can ensure the program complies with all the necessary statutory and insurance requirements.\n\n•\tCertainty the Defect Liability Period is matched to the requirements of the contract.\n\n## Possible Disadvantages of a PAI program\n•\tThe PAI is responsible for ensuring coverage is sufficient to cover the full scope of works and parties involved in the project.  It’s possible, coverage may not be as broad as the contractors or subcontractors already have in place.\n\n•\tTime and resources to source, review and place the various insurance policies.\n\n•\tPossible additional premium costs if the project is completed at a higher final value than originally estimated or an extension in the Period of Insurance is required. However, the reverse is also possible if the project is completed under budget and within the estimated construction period.\n\n•\tMay be more difficult to manage contractor and subcontractor performances concerning insurance-related claims.\n\n•\tCoverage arranged under a PAI program may be inferior to the coverage already in place for the contractors or subcontractors.  In order to maintain their level of cover, they may incur additional costs from their insurer.\n\n•\tThere may be a lack of clarity as to the calculations for insurance costs being passed through to the contractors and subcontractors.\n\n•\tThe cost of the PAI program may exceed the actual insurance costs that can be achieved by the contractors and subcontractors for similar coverage.\n\n•\tWorkers Compensation won’t be included in a PAI program and contractors and subcontractors remain responsible for this insurance.\n\n•\tDepending on the size of the project and the retention strategy of the principal or owner, deductibles/excesses may be considerably higher than contractors or subcontractors have under their own policies.  This could lead to contractors and subcontractors having to procure deductible/excess buy down policies. \n\nIn Australian Standard Contracts, such as AS4000 (General Conditions) and AS4300 (Design and Construct), the Insurance section will provide two Alternatives for the Contracting parties to agree upon and confirmed in the Annexure of the Contract. These two options being, Alternative 1 (Insurance Arranged by the Contractor) and Alternative 2 (Insurance Arranged by the Principal), these clauses will be individually available for Contract Works and Third Party Liability. Therefore, the party responsible for procuring Insurance is a negotiation that needs to occur before terms are agreed. \n\n**Securing the best insurance for your project(s) is critical and complicated. For more detailed information or to discuss your insurance needs in more detail, please call Scope Underwriting on 1800 942 972 or send us an email at enquiry@scopeuw.com.au**"},"title":"The Advantages & Disadvantages of a Principal-Arranged Insurance (PAI) Program","openGraph":{"description":{"plain":"A detailed overview exploring the features, benefits and potential drawbacks of a Principal-Arranged Insurance Program (PAI) sometimes referred to as a “wrap-up”, Principal Controlled or Owner Controlled program. \n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1743641630/rhodian/banner/high-rise-construction-and-crane_thumbnail__iStock-1323030556_mjigwy.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1743641630/rhodian/banner/high-rise-construction-and-crane_thumbnail__iStock-1323030556_mjigwy.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1743641630/rhodian/banner/high-rise-construction-and-crane_thumbnail__iStock-1323030556_mjigwy.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1743641630/rhodian/banner/high-rise-construction-and-crane_thumbnail__iStock-1323030556_mjigwy.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1743641630/rhodian/banner/high-rise-construction-and-crane_thumbnail__iStock-1323030556_mjigwy.jpg"}}}},"type":{"id":"67f4a84b882283b3704a459f","name":"Technical overview","slug":"technical-overview","__typename":"PostType"},"published":"2025-04-08T00:00:00.00","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"689d420fcb3077838fa3f95a","name":"Building Resilience in a High-Liability Environment: How Brokers Can Empower Clients with Proactive Risk Controls","path":"/posts/building-resilience-in-a-high-liability-environment-how-brokers-can-empower-clients-with-proactive-risk-controls","slug":"building-resilience-in-a-high-liability-environment-how-brokers-can-empower-clients-with-proactive-risk-controls","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"Australia’s commercial liability landscape is becoming increasingly complex. Regulatory scrutiny is intensifying, claims costs are rising, and courts are showing less tolerance for businesses that cannot demonstrate active risk management. For brokers, this environment presents both a challenge and an opportunity—particularly in aligning clients with cover that not only responds to claims but actively helps prevent them.\n","text":"Australia’s commercial liability landscape is becoming increasingly complex. Regulatory scrutiny is intensifying, claims costs are rising, and courts are showing less tolerance for businesses that cannot demonstrate active risk management. For brokers, this environment presents both a challenge and an opportunity—particularly in aligning clients with cover that not only responds to claims but actively helps prevent them."},"content":{"text":"Scope Underwriting specialises in providing tailored Public & Products Liability solutions for industries facing higher-than-average exposure. From contractors and manufacturers to property owners and service providers, Scope’s approach combines robust policy wording with a strong emphasis on risk mitigation—helping clients navigate a world where prevention is as critical as protection.\n\n**The New Standard: Risk Management as a Competitive Advantage**\n\nIn today’s market, liability insurance can no longer be viewed as a stand-alone safety net. Insurers and underwriters are increasingly rewarding businesses that can demonstrate structured risk controls, clear incident reporting protocols, and a track record of safety compliance.\n\nBrokers can position themselves as strategic partners by guiding clients toward proactive measures such as:\n\n* Site Safety Audits – Identifying hazards before they cause incidents.\n\n* Subcontractor Vetting – Ensuring third parties meet compliance and safety standards.\n\n* Incident Reporting Systems – Allowing faster claims response and trend analysis.\n\n* Employee Training – Embedding a culture of accountability and hazard awareness.\n\nThese measures not only reduce the likelihood of claims but also strengthen the client’s profile in the eyes of underwriters—supporting better terms, more competitive premiums, and broader coverage.\n\n**Scope’s Role in Enabling Broker Success**\n\nScope Underwriting’s TPL policies are structured to meet the unique operational realities of each client. With in-house underwriting expertise and the flexibility to tailor cover for complex risks, Scope works closely with brokers to ensure that policy terms align with actual business practices.\n\nBeyond cover, Scope supports brokers in delivering value-added service to clients—providing guidance on contractual risk transfer, policy limit adequacy, and emerging liability exposures across multiple sectors.\n\n**Why This Matters Now**\n\nRising litigation trends, particularly in the areas of labour hire, construction, and manufacturing, are reshaping the liability landscape. Clients without proactive risk management are more vulnerable—not just to incidents, but to longer-term reputational and financial harm.\n\nBy partnering with Scope Underwriting as broker, you can deliver more than a policy, you can provide a risk resilience strategy that supports client success in an increasingly litigious environment.\nHelp your clients turn risk management into a competitive advantage. \n\nSpeak with Scope Underwriting today about tailored liability solutions that combine protection with prevention.\n\nBy partnering with Scope Underwriting as broker, you can deliver more than a policy, you can provide a risk resilience strategy that supports client success in an increasingly litigious environment.\nHelp your clients turn risk management into a competitive advantage. \n\n**Speak with Scope Underwriting today about tailored liability solutions that combine protection with prevention.**\n\nContact: 1800 942 972\n**scopeunderwriting.com.au**"},"title":null,"openGraph":{"description":{"plain":"Australia’s commercial liability landscape is becoming increasingly complex. Regulatory scrutiny is intensifying, claims costs are rising, and courts are showing less tolerance for businesses that cannot demonstrate active risk management. For brokers, this environment presents both a challenge and an opportunity—particularly in aligning clients with cover that not only responds to claims but actively helps prevent them.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1755816982/rhodian/banner/liability_image__iStock-2161812774_ewdg7c.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1755816982/rhodian/banner/liability_image__iStock-2161812774_ewdg7c.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1755816982/rhodian/banner/liability_image__iStock-2161812774_ewdg7c.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1755816982/rhodian/banner/liability_image__iStock-2161812774_ewdg7c.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1755816982/rhodian/banner/liability_image__iStock-2161812774_ewdg7c.jpg"}}}},"type":{"id":"67eb766aab8387072860c8e4","name":"Insights","slug":"insights","__typename":"PostType"},"published":"2026-05-14T05:32:59.83","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"68cb8ad92bed93fd72d2287b","name":"Construction Liability in 2025: What Brokers Need to Watch","path":"/posts/construction-liability-in-2025-what-brokers-need-to-watch","slug":"construction-liability-in-2025-what-brokers-need-to-watch","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"The construction sector remains one of the most active — and most complex — areas of liability insurance. For brokers, supporting contractors and builders has become increasingly challenging as claims rise, regulatory scrutiny intensifies, and subcontractor exposures expand.\n","text":"The construction sector remains one of the most active — and most complex — areas of liability insurance. For brokers, supporting contractors and builders has become increasingly challenging as claims rise, regulatory scrutiny intensifies, and subcontractor exposures expand."},"content":{"text":"**Why Claims Are Rising**\n\nConstruction sites carry an inherent risk of injury and property damage, but claim severity has grown in recent years. Contributing factors include:\n\n•\tLabour shortages and tight deadlines that extend repair times and can increase incident frequency.\n\n•\tComplex subcontracting chains where contractual responsibility is unclear.\n\n•\tRegulatory enforcement of workplace health and safety standards, with courts showing less tolerance for non-compliance.\n\nEven small errors — a scaffolding collapse, faulty wiring, or poor site supervision — can trigger large third-party claims.\n\n**Subcontractor Liability: A Growing Concern**\n\nThe 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.  \n\n**Site Safety Obligations**\n\nRegulators 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.\n\n**How Brokers Can Add Value**\n\n•\tHighlight gaps: Ensure subcontractor liability is explicitly covered and not assumed.\n\n•\tEncourage proactive safety: Position site audits, toolbox talks, incident reporting and compliance documentation as cost-saving tools.\n\n•\tExplore specialist facilities: With many insurers limiting appetite in construction, MGAs like Scope remain critical in providing tailored liability solutions.\n\n**Scope’s Role**\n\nAt 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.\n\n**Looking Ahead**\n\nAs 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.\n\n**Contact Scope Underwriting: enquiry@scopeuw.com.au**\n"},"title":null,"openGraph":{"description":{"plain":"The construction sector remains one of the most active — and most complex — areas of liability insurance. For brokers, supporting contractors and builders has become increasingly challenging as claims rise, regulatory scrutiny intensifies, and subcontractor exposures expand.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1758169781/rhodian/banner/tp-la_image__iStock-1493203194_z9kj30.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1758169781/rhodian/banner/tp-la_image__iStock-1493203194_z9kj30.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1758169781/rhodian/banner/tp-la_image__iStock-1493203194_z9kj30.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1758169781/rhodian/banner/tp-la_image__iStock-1493203194_z9kj30.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1758169781/rhodian/banner/tp-la_image__iStock-1493203194_z9kj30.jpg"}}}},"type":null,"published":"2026-05-14T05:34:10.88","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}},{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"69840b55b7e641bfe5ab33f5","name":"Managing Construction Risk in an Insolvency-Heavy Market","path":"/posts/managing-construction-risk-in-an-insolvency-heavy-market","slug":"managing-construction-risk-in-an-insolvency-heavy-market","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"Record builder insolvencies are now a mainstream construction risk in Australia, not a fringe scenario. ASIC linked data shows construction insolvencies reached decade highs in the year to June 2024, and more recent reporting indicates the building sector has since pushed to even higher levels, with thousands of collapses recorded across FY2025. \n","text":"Record builder insolvencies are now a mainstream construction risk in Australia, not a fringe scenario. ASIC linked data shows construction insolvencies reached decade highs in the year to June 2024, and more recent reporting indicates the building sector has since pushed to even higher levels, with thousands of collapses recorded across FY2025. "},"content":{"text":"\nThis is the backdrop brokers are navigating when placing Contract Works, Construction Liability and associated Professional Indemnity exposures.\n\nFrom Scope Underwriting’s perspective, the insolvency cycle is being driven by a familiar mix that has intensified: fixed price contracts written in a volatile input cost environment, labour and subcontractor capacity constraints, cashflow compression from delayed variations and progress claims, and higher funding costs flowing through to principals and builders. When one trade fails, the domino effect can be immediate, particularly on multi site residential and mid market commercial projects, where thin margins leave little room for shock absorption.\n\nFor brokers, the practical priority is early risk triage and tighter placement hygiene. Ask harder questions about contract terms, escalation clauses, retention, subcontractor payment practices, and project governance. Where available, align cover structure to the real exposure profile: realistic limits, appropriate deductibles, clear insured parties, and careful attention to defects, rectification, and professional services triggers. In a market where insolvency is common, the best outcomes tend to come from disciplined pre bind due diligence, documentation discipline, and proactive mid project check ins, not from claims time surprises."},"title":null,"openGraph":{"description":{"plain":"Record builder insolvencies are now a mainstream construction risk in Australia, not a fringe scenario. ASIC linked data shows construction insolvencies reached decade highs in the year to June 2024, and more recent reporting indicates the building sector has since pushed to even higher levels, with thousands of collapses recorded across FY2025. \n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1770261232/rhodian/banner/insolvency-image_image__iStock-2157483438_qia4xe.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1770261232/rhodian/banner/insolvency-image_image__iStock-2157483438_qia4xe.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1770261232/rhodian/banner/insolvency-image_image__iStock-2157483438_qia4xe.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1770261232/rhodian/banner/insolvency-image_image__iStock-2157483438_qia4xe.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1770261232/rhodian/banner/insolvency-image_image__iStock-2157483438_qia4xe.jpg"}}}},"type":null,"published":"2026-02-05T03:15:33.27","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}},{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"69d6f0c5398ff882b98d019a","name":"An interview with Scope's newest team member, Sam Hollands... ","path":"/posts/an-interview-with-scopes-newest-team-member-sam-hollands","slug":"an-interview-with-scopes-newest-team-member-sam-hollands","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"Joining Scope at an exciting stage of growth, Sam brings a relationship-driven approach and a clear focus on supporting brokers and delivering practical underwriting solutions in the construction space.\n","text":"Joining Scope at an exciting stage of growth, Sam brings a relationship-driven approach and a clear focus on supporting brokers and delivering practical underwriting solutions in the construction space."},"content":{"text":"**Give us a quick snapshot of your path into insurance. Was this always the plan, or did you find your way into it?**\n\nI studied mathematics and physics at Monash University. Insurance was something I always felt would pair well with my background, but in reality, I naturally gravitated toward the industry through word of mouth and its lively nature. Like most people, I’d say I fell into it.\n\n**You’re known as someone who builds strong relationships. What is it about working closely with brokers that you enjoy most? **\n\nI’ve always believed in finding solutions and building relationships by making a broker’s life easier. In turn, helping find the right solution for the client is incredibly satisfying. I’ve also found that there’s a wide range of personalities in insurance and broking, which really draws me to getting to know people better, everyone has their own unique story.\n \n **What made Scope the right move for you at this stage?**\n\nWhat drew me to Scope was the clear focus on development and growth. I’ve been impressed by how the company is constantly evolving and improving, and being part of that journey from an early stage feels like a rare and exciting opportunity. It’s not just about personal growth, it’s about contributing to a team that’s shaping the future of the business and making a tangible impact.\n\n**After meeting the team, what stood out about how Scope approaches brokers and underwriting?**\n\nI’ve found the team to be very supportive and always willing to help as I develop my knowledge in construction insurance. I believe this is also reflected in our underwriting approach, where we focus on finding solutions for both clients and brokers. We aim to help brokers secure the best possible terms for their clients, while also supporting them through the underwriting process and providing clear guidance on the products we offer.\n \n**From your perspective, what do brokers actually value most in an underwriter today?**\n\nSomeone who is willing and able to educate others in a timely manner, and who values collaboration between underwriting and broking rather than treating them as separate functions. Working together ultimately leads to better outcomes for the client, with a strong focus on finding solutions.\n\n**What separates a good broker relationship from a great one?**\n\nOne where we work collaboratively to find a solution, rather than taking a “you handle the broking and I’ll handle the underwriting” approach. When there’s genuine teamwork, it leads to the best outcomes and makes the experience far more enjoyable for both brokers and underwriters.\n\n**When you meet a broker for the first time, how do you go about understanding their business and how they like to work?**\n\nWhen I meet a broker for the first time, I focus on listening and learning about their business, clients, and preferred ways of working. Understanding their style early helps me tailor my approach so we can collaborate effectively and achieve the best outcomes for their clients.\n\n**What can brokers expect from you day to day in terms of responsiveness and support?**\n\nThey can expect me to always be willing to go the extra mile for them. I want them to feel that I’m here to work alongside them and that I’m always available for a quick chat when needed.\n \n**As someone early in your underwriting career, where do you see yourself adding the most value right now?**\n\nI see myself bringing a fresh perspective to the team, while actively engaging in the market and helping to broaden Scope’s presence. My goal is to connect with brokers, have meaningful conversations about our products, and build strong, lasting relationships. I’m here to support both the team and our brokers, looking for opportunities to add value wherever I can, whether that’s through problem-solving, sharing insights, or helping secure the best outcomes for clients.\n\n**How are you approaching the balance between building technical expertise and staying commercially responsive to brokers?**\n\nI focus on building technical expertise by learning the details of our products and the construction industry, while staying commercially responsive by keeping brokers needs front of mind. It’s about being knowledgeable enough to offer the right solutions quickly, without losing sight of practical, real-world outcomes for their clients.\n \n**What are you most focused on building over the next 12 months?**\n\nOver the next 12 months, I’ll be focused on getting out and about with our clients, supporting them directly and representing Scope to the wider industry. To do this effectively, I want to build a deep understanding of our products and the construction sector, so I can provide practical solutions and insights. By combining hands-on client engagement with strong technical knowledge, I aim to strengthen relationships, add real value, and help both brokers and clients achieve their goals. \n\n**What would you like brokers to know about working with you?**\n\nI want brokers to know that I’m always approachable and happy to have a chat, whether it’s a quick call, a coffee, or a more in-depth meeting. My focus is on working alongside them, understanding their clients needs, and collaborating closely to find the best solutions. By building that open and supportive relationship, we can tackle challenges together, make the process smoother, and ultimately achieve the best outcomes for both their clients and our shared goals.\n\n**What keeps you busy when you’re not working?**\n\nOutside of work, I like to stay active and spend time with friends. You’ll usually find me on the golf course or playing tennis, enjoying a bit of friendly competition. If I’m not at home, I’ve likely headed out for a hike in the Victorian ranges.\n\n\n"},"title":null,"openGraph":{"description":{"plain":"Joining Scope at an exciting stage of growth, Sam brings a relationship-driven approach and a clear focus on supporting brokers and delivering practical underwriting solutions in the construction space.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1775711230/rhodian/banner/sam-hollands-header_image__Sam_Article_pwcprg.webp","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1775711230/rhodian/banner/sam-hollands-header_image__Sam_Article_pwcprg.webp","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1775711230/rhodian/banner/sam-hollands-header_image__Sam_Article_pwcprg.webp"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1775711230/rhodian/banner/sam-hollands-header_image__Sam_Article_pwcprg.webp","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1775711230/rhodian/banner/sam-hollands-header_image__Sam_Article_pwcprg.webp"}}}},"type":{"id":"65d566d1f7d2d452331bf0b2","name":"Interview","slug":"interview","__typename":"PostType"},"published":"2026-05-14T05:32:32.42","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1675399443/rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"65d566ccf7d2d452331bf076","name":"Tessa Chirnside","slug":"tessa-chirnside","path":"/people/tessa-chirnside","organisation":{"id":"65d566c0f7d2d452331beffe","name":"Rhodian"},"linkedin":"https://www.linkedin.com/in/tessa-chirnside/ ","photo":{"id":"image_rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp","url":"https://res.cloudinary.com/shapeable/image/upload/v1675399443/rhodian/person/tessa-chirnside_photo__Tessa_Chirnside-LoRezLinkedinWideShot_copy_uaf1be.webp.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"69df2612b977dd938932fb5e","name":"Extreme Weather Is Redefining Construction Risk","path":"/posts/extreme-weather-is-redefining-construction-risk","slug":"extreme-weather-is-redefining-construction-risk","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"Extreme weather is no longer an occasional disruption for construction projects. It is increasingly part of the operating environment. Flood, storm and cyclone events are occurring more frequently and with greater severity, and the impact on construction risk is becoming clearer with each major loss event. For brokers placing construction risks, the implications are significant. Extreme weather is reshaping underwriting expectations, programme structure and claims outcomes across the market.****\n","text":"Extreme weather is no longer an occasional disruption for construction projects. It is increasingly part of the operating environment. Flood, storm and cyclone events are occurring more frequently and with greater severity, and the impact on construction risk is becoming clearer with each major loss event. For brokers placing construction risks, the implications are significant. Extreme weather is reshaping underwriting expectations, programme structure and claims outcomes across the market.****"},"content":{"text":"**From Exceptional to Expected**\n\nHistorically, many construction programmes treated natural catastrophe exposure as a secondary consideration. Today, it is becoming a core underwriting factor.\n\nAcross Australia and globally, weather events that were once viewed as exceptional are now occurring with greater regularity. Construction sites are often exposed environments, with partially completed structures, temporary works and evolving risk profiles throughout the build.\n\nFor insurers, this means natural catastrophe exposure is no longer an outlier risk. It is a standard part of construction underwriting.\n\n**Higher Severity, Greater Scrutiny**\n\nRecent flood, storm and cyclone events have driven a noticeable increase in claims severity on construction projects.\n\nDamage to partially completed works, materials stored on site, and temporary infrastructure can escalate quickly when extreme weather hits. Delays caused by weather damage can also extend project timelines, which in turn increases the overall exposure period.\n\nAs a result, insurers are paying closer attention to how Nat Cat exposure is assessed and managed at placement.\n\n**Resilience Is Now Part of the Underwriting Conversation**\nInsurers increasingly expect to see resilience planning alongside the insurance submission.\nThis can include:\n\n• Site specific flood exposure assessments\n\n• Storm and cyclone mitigation measures\n\n• Construction sequencing that considers seasonal weather patterns\n\n• Temporary works designed to withstand severe weather conditions\n\nFor brokers, the submission is no longer just about project scope and contract value. It is about demonstrating that weather related risks have been considered and managed.\n\n**The Importance of Early Engagement**\n\nOne of the most common challenges with Nat Cat exposure arises when these issues are identified late in the placement process.\n\nQuestions around flood exposure, storm zones, escalation in sums insured or programme length can affect limits, pricing and even whether a risk sits within appetite.\n\nEarly underwriting engagement helps avoid these issues emerging mid placement or during the project itself.\nDiscussing exposure early allows brokers and underwriters to shape the programme appropriately, whether that involves adjusting limits, reviewing values or ensuring the policy structure reflects the real risk environment.\n\n\n**Construction Risk Is Evolving**\n\nExtreme weather is now part of the baseline for construction risk.\n\nFor brokers, understanding how Nat Cat exposure influences underwriting decisions will increasingly shape successful placements. Projects that demonstrate clear risk assessment and resilience planning are more likely to achieve stable coverage and avoid unexpected issues later in the build.\n\nAt Scope Underwriting, we work with brokers early to understand how construction risks are evolving and to provide a clear underwriting view on Nat Cat exposure before placement.\n\nBecause when weather risk is changing, clarity around construction cover matters more than ever.\n\n "},"title":null,"openGraph":{"description":{"plain":"Extreme weather is no longer an occasional disruption for construction projects. It is increasingly part of the operating environment. Flood, storm and cyclone events are occurring more frequently and with greater severity, and the impact on construction risk is becoming clearer with each major loss event. For brokers placing construction risks, the implications are significant. Extreme weather is reshaping underwriting expectations, programme structure and claims outcomes across the market.****\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1776232031/rhodian/banner/extreme-weather-construction_image__iStock-471597451_pvte4c.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1776232031/rhodian/banner/extreme-weather-construction_image__iStock-471597451_pvte4c.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1776232031/rhodian/banner/extreme-weather-construction_image__iStock-471597451_pvte4c.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1776232031/rhodian/banner/extreme-weather-construction_image__iStock-471597451_pvte4c.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1776232031/rhodian/banner/extreme-weather-construction_image__iStock-471597451_pvte4c.jpg"}}}},"type":{"id":"67eb766aab8387072860c8e4","name":"Insights","slug":"insights","__typename":"PostType"},"published":"2026-05-14T05:38:17.98","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}},{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"6a29f786de445f60ab7ba490","name":"The Growing Gap Between a Good Builder and a Good Risk","path":"/posts/the-growing-gap-between-a-good-builder-and-a-good-risk","slug":"the-growing-gap-between-a-good-builder-and-a-good-risk","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"Most brokers have encountered it.\nA contractor with a strong reputation. Quality projects. Experienced leadership. Good relationships in the market. On paper, a business that appears to be exactly the type of risk insurers should want to support.\nYet the underwriting outcome doesn't always reflect that.\n","text":"Most brokers have encountered it.\nA contractor with a strong reputation. Quality projects. Experienced leadership. Good relationships in the market. On paper, a business that appears to be exactly the type of risk insurers should want to support.\nYet the underwriting outcome doesn't always reflect that.\n"},"content":{"text":"The reason is simple. Being a good builder and being a good insurance risk are not always the same thing. Workmanship remains important, but today's construction underwriting extends far beyond the quality of the finished product. Increasingly, underwriters are looking at the broader operating environment around the business and how that may influence future claims performance.\n\nContract terms are one example. A well run contractor can still take on contractual obligations that create exposures beyond what would normally be expected. The same applies to subcontractor management. Even highly capable builders can find themselves exposed when critical project functions are outsourced without appropriate oversight or controls.\nProject concentration is another area attracting attention. A contractor may have an excellent track record, but if a significant proportion of revenue is tied to a small number of projects, clients or sectors, the risk profile can change quickly if conditions shift.\n\nFinancial structure also remains a key consideration. Construction businesses continue to operate in an environment where margins can be tight and project delivery challenges can emerge unexpectedly. Understanding how a business is positioned to absorb those pressures remains an important part of the underwriting process.\n\nGeographic spread, project selection and defects history can all provide valuable context as well. None of these factors necessarily indicate a poor risk. They simply help build a more complete picture.\nFor brokers, this highlights the importance of telling the full story behind the submission. The strongest outcomes often come when underwriters are given insight into how the business operates, how decisions are made and how risk is managed in practice.\n\nConstruction risks are becoming increasingly nuanced. The businesses that stand out are often those that can demonstrate not only that they build well, but that they manage risk well too.\n\nAt Scope, we believe good underwriting starts with understanding the business behind the project. The more context we have, the better equipped we are to support brokers in finding the right outcome for their clients.\n\n**Give us a call on 1800 942 972 to talk about a construction risk today. **\n \n"},"title":null,"openGraph":{"description":{"plain":"Most brokers have encountered it.\nA contractor with a strong reputation. Quality projects. Experienced leadership. Good relationships in the market. On paper, a business that appears to be exactly the type of risk insurers should want to support.\nYet the underwriting outcome doesn't always reflect that.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1781135124/rhodian/banner/builder-1_image__iStock-2236924714_lynjjk.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1781135124/rhodian/banner/builder-1_image__iStock-2236924714_lynjjk.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1781135124/rhodian/banner/builder-1_image__iStock-2236924714_lynjjk.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1781135124/rhodian/banner/builder-1_image__iStock-2236924714_lynjjk.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1781135124/rhodian/banner/builder-1_image__iStock-2236924714_lynjjk.jpg"}}}},"type":{"id":"67eb766aab8387072860c8e4","name":"Insights","slug":"insights","__typename":"PostType"},"published":"2026-06-11T01:37:41.35","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}},{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"6a5ca1ab1b723d49b16653b8","name":"Defects Exclusions in Contract Works Policies","path":"/posts/defects-exclusions-in-contract-works-policies","slug":"defects-exclusions-in-contract-works-policies","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"Defects Exclusions in Contract Works Policies\nWhy the small print matters more than ever — and what's changing.\nA Contract Works claim rarely turns on whether there's cover for damage — it turns on the defects exclusion buried in the policy wording. The clause selected, whether DE3, DE4, DE5, LEG2 or LEG3, can be the difference between a claim being paid in full and a client being left to fund a significant shortfall themselves.\nWith the London Engineering Group (LEG) confirming it will release updated clause wordings by the end of August 2026, this is a timely moment to revisit how these exclusions work and what you should be discussing with your clients.\n","text":"**Defects Exclusions in Contract Works Policies**\n*Why the small print matters more than ever — and what's changing.*\n\nA Contract Works claim rarely turns on whether there's cover for damage — it turns on the defects exclusion buried in the policy wording. The clause selected, whether DE3, DE4, DE5, LEG2 or LEG3, can be the difference between a claim being paid in full and a client being left to fund a significant shortfall themselves.\n\nWith the London Engineering Group (LEG) confirming it will release updated clause wordings by the end of August 2026, this is a timely moment to revisit how these exclusions work and what you should be discussing with your clients.\n"},"content":{"text":"**Two Families of Defects Wordings.**\n\nContract Works markets typically draw on two clause families:\n\n●\tDE clauses (drafted by the UK CAR Group) — traditionally used for building projects.\n\n●\tLEG clauses (drafted by the London Engineering Group) — traditionally used for civil, heavily engineered, electrical, mechanical and process engineering projects.\n\nIn practice the choice increasingly comes down to insurer and broker preference rather than strict project type, so it's worth knowing both families well.\n\n\n**DE3, DE4 and DE5 — the practical differences.**\n\n●\tDE3 — excludes the cost of repairing the defective property itself (and anything relying on it for support), but pays for damage to other insured property that is free of the defect.\n\n●\tDE4 — a narrower version of the same idea, limiting the exclusion to the specific defective component or item rather than the wider defective structure.\n\n●\tDE5 — the broadest of the three. It pays to rectify damage to both the defective and non-defective property; the only thing excluded is the additional cost of improving the original design, materials or workmanship — commonly called \"betterment\".\n\n\n**LEG2 and LEG3 — the practical differences**\n\n●\tLEG2/96 — broadly mirrors DE3/DE4. It excludes the cost that would have been needed to replace or rectify the defect had it been picked up before any damage occurred, while covering resultant damage to parts of the property that are free of the defect.\n\n●\tLEG3/06 — the broadest LEG wording. Like DE5, it covers the cost of rectifying damage to both the defective and non-defective portions of the property, excluding only betterment costs.\n\n**At a Glance**\n\n\n<ImageAsset id=\"6a5d71b51b723d49b16653dc\" />\n\n\n*Cover is net of betterment — insurers still deduct the cost of any improvement to the original design, materials or workmanship.\n\n\n**What's Changing: New LEG Clauses Expected by End of Summer**\n\nSpeaking at Commercial Risk's Construction Risk Management Europe conference in June 2026, LEG chairman Charlie Dee confirmed that updated LEG1, LEG2 and LEG3 wordings — together with a supporting guidance note — are on track for release by the end of summer 2026.\n\nThe update follows several years of uncertainty after a September 2023 US federal court ruling (SCB v Lexington Insurance Company) found the current LEG3/06 wording \"egregiously ambiguous,\" significantly widening the accepted interpretation of LEG3 cover. A further US decision, Archer v Ace, reached a similar conclusion, while a Danish court ruled against a contractor on the same clause in 2025. Between them, the rulings raised real concern in the market that insurers could restrict — or withdraw — LEG3 cover altogether.\n\nLEG has been clear that the intent behind the redraft is clarity, not a change in the scope of cover:\n\n●\tThe primary goal is to remove the \"tortuous\" language criticised by the US court and reduce the scope for future disputes over interpretation.\n\n●\tLEG has stated it has deliberately avoided broadening or restricting cover — the new clauses are intended to respond to claims in the same way as the versions they replace.\n\n●\tThe drafting followed a broad market consultation, including major London carriers and brokers, feedback from the IUA's claims committee, loss adjusters, and legal opinion from the UK, US and Australia.\n\n●\tA broker sits within LEG's working group specifically to help ensure the new wordings preserve the existing level of cover.\n\n\n**What This Means for Your Clients**\n\n●\tReview the defects exclusion on current and upcoming Contract Works placements — DE3/DE4/LEG2 and DE5/LEG3 can produce very different claims outcomes for the same loss.\n\n●\tConsider deductibles alongside cover level: broader cover under DE5/LEG3 often carries a higher deductible, and in some cases a \"DE3(4)/DE5\" or \"LEG2/LEG3\" option can let the client choose the better outcome at claim stage.\n\n●\tFor contractors seeking the broadest cover, insurers are increasingly focused on demonstrable quality control, tender discipline and a track record of delivering similar projects — this is worth factoring into submissions.\n\n●\tClients with live claims under the current LEG3/06 wording are not expected to be affected by the new clauses, but it's worth keeping an eye on LEG's guidance note once published.\n\n\n**Talk to Scope Underwriting**\n\nNot sure which defects exclusion suits your client's next project? \n\nGet in touch with your usual Scope Underwriting contact — we're happy to talk through DE and LEG options for any upcoming Contract Works submission, and we'll keep you updated as soon as LEG's new wordings and guidance note are published.\n\n"},"title":null,"openGraph":{"description":{"plain":"Defects Exclusions in Contract Works Policies\nWhy the small print matters more than ever — and what's changing.\nA Contract Works claim rarely turns on whether there's cover for damage — it turns on the defects exclusion buried in the policy wording. The clause selected, whether DE3, DE4, DE5, LEG2 or LEG3, can be the difference between a claim being paid in full and a client being left to fund a significant shortfall themselves.\nWith the London Engineering Group (LEG) confirming it will release updated clause wordings by the end of August 2026, this is a timely moment to revisit how these exclusions work and what you should be discussing with your clients.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1784448047/rhodian/banner/engineer-on-commercial-site_image__iStock-1447139851_jwi1w4.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1784448047/rhodian/banner/engineer-on-commercial-site_image__iStock-1447139851_jwi1w4.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1784448047/rhodian/banner/engineer-on-commercial-site_image__iStock-1447139851_jwi1w4.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1784448047/rhodian/banner/engineer-on-commercial-site_image__iStock-1447139851_jwi1w4.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1784448047/rhodian/banner/engineer-on-commercial-site_image__iStock-1447139851_jwi1w4.jpg"}}}},"type":{"id":"67f4a84b882283b3704a459f","name":"Technical overview","slug":"technical-overview","__typename":"PostType"},"published":"2026-07-20T00:55:57.07","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"6a87d0ca6e7df63d7eafe3eb","name":"The contract changed. Did the liability cover?","path":"/posts/the-contract-changed-did-the-liability-cover","slug":"the-contract-changed-did-the-liability-cover","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"A construction contract can begin as a familiar standard form and look very different by the time the amendments are finished.\nAn expanded indemnity here. Another insured party there. Responsibility for subcontractors, existing property or completed work added along the way.\nEach change may appear relatively small. Together, they can materially alter the Third Party Liability exposure.\n","text":"A construction contract can begin as a familiar standard form and look very different by the time the amendments are finished.\n\nAn expanded indemnity here. Another insured party there. Responsibility for subcontractors, existing property or completed work added along the way.\n\nEach change may appear relatively small. Together, they can materially alter the Third Party Liability exposure."},"content":{"text":"For brokers, the important question is not simply whether the client has the required limit. It is whether the insurance program reflects the responsibility the client has actually agreed to assume.\n\n**Standard contracts do not always stay standard.**\n\nStandard-form contracts such as AS4000 and AS4300 provide a familiar starting point for allocating responsibility between principals and contractors. In practice, these contracts are often amended to reflect the requirements of the project or the risk position of the principal.\n\nThose amendments can affect:\n\n* Who must be included as an insured.\n* What the contractor is required to indemnify.\n* Responsibility for subcontractors.\n* Waivers of subrogation.\n* Cross-liability requirements.\n* Existing property and surrounding structures.\n* The period for which insurance must remain in place.\n* Required limits, deductibles and policy extensions.\n\nThe insurance schedule may provide a useful summary, but it does not always capture every obligation contained elsewhere in the contract.\n\n**Contractual responsibility and insured liability are not always the same.**\n\nA contractor can agree to accept a broad range of responsibilities under a contract. That does not necessarily mean every responsibility will be covered by the TPL policy.\n\nA policy will respond according to its wording, conditions and exclusions. If the contract requires the contractor to assume liability beyond what would ordinarily apply, there may be a difference between the contractual obligation and the available insurance cover.\n\nThis is particularly important where the contractor agrees to:\n\n* Indemnify parties beyond the principal.\n* Accept responsibility for another party’s acts or omissions.\n* Cover all subcontractors, regardless of their role.\n* Protect existing property in the contractor’s care, custody or control.\n* Maintain cover beyond practical completion.\n* Waive recovery rights against other project participants.\n* Meet requirements that conflict with the proposed policy wording.\n\nThese issues do not always prevent a placement. They do, however, need to be understood before terms are finalised.\n\n**A certificate of currency is not the whole answer.**\n\nA certificate of currency may confirm that a policy exists, identify the insured and show the limit of liability. It does not provide a detailed view of how the policy will respond to every contractual requirement.\n\nA certificate can appear to satisfy the insurance schedule while differences remain between the contract and the underlying policy.\n\nThat is why contract review should not become a box-ticking exercise. The parties, responsibilities and insurance obligations need to be considered together.\n\n**Where brokers can add value.**\n\nThe best time to identify a potential mismatch is before the contract is signed and before the insurance placement is complete.\n\nWhen discussing a construction TPL risk, it is helpful to provide:\n\n* The complete contract, including special conditions and amendments.\n* The insurance schedule.\n* Details of the principal, contractor and other parties requiring insured status.\n* The scope and value of the works.\n* Information about subcontracted activities.\n* Requirements relating to existing property.\n* The construction and defects liability periods.\n* Any unusual indemnities, waivers or insurance clauses.\n\nProviding this information early gives the underwriter an opportunity to understand the intended risk allocation, identify areas requiring clarification and consider whether the policy needs to be tailored.\n\nIt also gives the broker time to discuss any issues with the client before they become contractual commitments.\n\n**This is where technical underwriting matters.**\n\nConstruction TPL is not simply a matter of entering project values and selecting a limit.\n\nThe contract, site activities, project participants and proposed insurance structure all need to work together. On more complex projects, that requires discussion between the broker and an underwriter who understands construction contracts as well as the insurance wording.\n\nAt Scope, the process begins with understanding the project and the client’s contractual obligations. From there, Scope can work with the broker to identify the relevant exposures and consider how the insurance program should be structured.\n\nScope does not provide legal advice or determine whether a client should accept a particular contractual obligation. The underwriting team can, however, help brokers understand whether the proposed insurance aligns with the information and requirements presented.\n\nA standard contract may provide the starting point. It is the final version that matters.\n\nIf the contract has changed, it is worth checking whether the Liability cover needs to change with it.\n\n**For a technical discussion about an upcoming construction TPL placement, contact the Scope Underwriting team at enquiry@scopeuw.comau or call 1800 942 972.**\n\n*Cover is subject to the applicable policy terms, conditions, limits and exclusions.*"},"title":null,"openGraph":{"description":{"plain":"A construction contract can begin as a familiar standard form and look very different by the time the amendments are finished.\nAn expanded indemnity here. Another insured party there. Responsibility for subcontractors, existing property or completed work added along the way.\nEach change may appear relatively small. Together, they can materially alter the Third Party Liability exposure.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1787555180/rhodian/banner/construction-2_image__iStock-1409755716_fesnjm.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1787555180/rhodian/banner/construction-2_image__iStock-1409755716_fesnjm.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1787555180/rhodian/banner/construction-2_image__iStock-1409755716_fesnjm.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1787555180/rhodian/banner/construction-2_image__iStock-1409755716_fesnjm.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1787555180/rhodian/banner/construction-2_image__iStock-1409755716_fesnjm.jpg"}}}},"type":null,"published":"2026-08-24T07:06:28.16","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}},{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}},{"data":{"id":"6ab3397c05bf81cf16bb793c","name":"Annual or project-specific CAR? The questions that matter before work begins.","path":"/posts/annual-or-project-specific-car-the-questions-that-matter-before-work-begins","slug":"annual-or-project-specific-car-the-questions-that-matter-before-work-begins","__typename":"Post","_schema":{"label":"Post","pluralLabel":"Posts"},"intro":{"plain":"Australia’s construction pipeline remains substantial. Infrastructure Australia’s 2025 Market Capacity Report puts the Major Public Infrastructure Pipeline at $242 billion across the five financial years from 2024–25 to 2028–29, driven by continued investment in transport, housing and the energy transition.\n","text":"Australia’s construction pipeline remains substantial. Infrastructure Australia’s 2025 Market Capacity Report puts the Major Public Infrastructure Pipeline at $242 billion across the five financial years from 2024–25 to 2028–29, driven by continued investment in transport, housing and the energy transition."},"content":{"text":"For brokers, this creates opportunity, but also increasingly varied and complex construction exposures.\nOne of the first questions when arranging Contractors All Risk insurance is whether the client is better suited to an annual policy or a project-specific placement.\nIt can appear to be a simple question of convenience or price. In practice, the structure selected can affect how accurately the risk is presented, whether contract requirements are satisfied and how confidently the policy responds as the project changes.\n\n**When does an annual policy make sense?**\n\nAn annual CAR policy can be an efficient solution for contractors undertaking a regular flow of similar work.\nRather than arranging separate insurance for every contract, the contractor can insure eligible projects under one program, subject to the policy’s declared activities, maximum contract value, project duration and other parameters.\n\nThis can work particularly well where the contractor has:\n\n* A consistent type of construction activity\n\n* A predictable range of contract values\n\n* Multiple projects beginning throughout the year\n\n* Established risk management and reporting procedures\n\n* No unusual contractual or technical exposures\n\n* However, an annual policy should not be treated as automatic cover for every project the contractor accepts.\n\nBefore relying on it, the broker should check whether the new contract falls within the policy’s parameters. A project may exceed the maximum contract value, extend beyond the permitted construction period or involve work outside the contractor’s normal activities. A civil contractor moving into building construction, a commercial builder accepting a complex refurbishment or a contractor taking on a significantly larger project may require a separate underwriting conversation.\n\n**When is project-specific cover more appropriate?**\n\nA project-specific policy allows the insurance to be structured around one defined project.\nThis may be preferable where the project:\n\n* Has a high contract value\n\n* Runs for several years\n\n* Involves complex construction methods\n\n* Includes extended and/or extensive testing or commissioning exposures\n\n* Has unusual contractual insurance requirements\n\n* Requires dedicated limits for the principal, financier or other stakeholders\n\n* Project-specific cover can provide greater clarity because the policy period, insured parties, values, scope of works and relevant extensions are considered against the characteristics of that particular contract.\n\nIt may also prevent a significant loss on one project from affecting the limits available to the contractor’s broader portfolio.\n\n**Six questions brokers should ask early**\n\nWhichever structure is being considered, the quality of the outcome often depends on the questions asked before work begins.\n\n**1. What is the complete insured value?**\n\nThe original contract price is only the starting point. The declared value may also need to contemplate principal-supplied materials, professional fees, temporary works, demolition costs, escalation, variations and other amounts for which the insured is responsible. If the project changes materially during construction, the insurance values may need to change with it.\n\n**2. How long could the project actually take?**\n\nThe construction period should allow for more than the optimistic program submitted at tender. Approvals, supply constraints, variations and weather can all affect completion. The insurance arrangement should also consider testing and commissioning, handover, practical completion and any maintenance or defects liability period. An extension should be discussed before the existing policy period expires, not after.\n\n**3. Is this genuinely a new build?**\n\nRefurbishments, alterations and extensions often introduce exposures that are not present on a clear greenfield site. Brokers should establish whether the works connect to, modify or rely upon an existing structure. The ownership, condition and value of that structure should be clearly understood, together with responsibility for any surrounding property.\n\n**4. Who must be insured?**\n\nConstruction contracts can require the interests of the principal, head contractor, subcontractors, financiers and other parties to be recognised. The names in the contract and the insurance policy should align. Brokers should also identify relevant indemnities, waivers, insurance clauses and contractual responsibilities rather than assuming that a broad description of insured parties will resolve every requirement.\n\n**5. What happens away from the site?**\n\nMaterials may be manufactured, stored or transported before arriving at the project. If significant equipment, prefabricated components or imported materials are involved, the broker should establish where responsibility transfers and whether the proposed CAR arrangement addresses off-site storage and transit exposures.\n\n**6. What could turn a manageable loss into a major one?**\n\nThe physical works are only part of the risk. Site access, neighbouring property, excavation, temporary works, fire protection, water damage controls, security, flood exposure and the sequencing of testing and commissioning can materially affect the size of a loss. Clear information about these controls allows the underwriter to assess the actual project rather than make conservative assumptions.\n\n**Technical underwriting should help the broker shape the risk**\n\nA useful underwriting conversation should do more than produce a list of unanswered questions. It should help the broker identify which details materially affect the placement, where the contract and proposed insurance may not align and whether an annual or project-specific structure provides the better solution. Engaging the underwriter early can be particularly valuable when the contract is still being negotiated. At that point, there may still be an opportunity to clarify responsibilities, amend problematic insurance requirements or gather the information needed to secure appropriate capacity. Once work has commenced, the available options can narrow quickly. A well-structured CAR placement is not simply a policy attached to a contract. It is an insurance solution that reflects how the project will actually be designed, procured, constructed and completed.\n\nScope Underwriting’s expanded Contractors All Risk capability includes annual and project-specific placements, supported by experienced local decision-makers and consultative construction underwriting.\n\n**For help assessing an upcoming contract or structuring a contractor’s annual program, speak with Nick, Rob or Sam at Scope.**"},"title":null,"openGraph":{"description":{"plain":"Australia’s construction pipeline remains substantial. Infrastructure Australia’s 2025 Market Capacity Report puts the Major Public Infrastructure Pipeline at $242 billion across the five financial years from 2024–25 to 2028–29, driven by continued investment in transport, housing and the energy transition.\n"},"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1790130863/rhodian/banner/construction-plans_image__iStock-2180354982_ru6pox.jpg","url2x":null,"thumbnails":{"card":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_480/v1790130863/rhodian/banner/construction-plans_image__iStock-2180354982_ru6pox.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_960/v1790130863/rhodian/banner/construction-plans_image__iStock-2180354982_ru6pox.jpg"},"bubble":{"url":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_64/v1790130863/rhodian/banner/construction-plans_image__iStock-2180354982_ru6pox.jpg","url2x":"https://res.cloudinary.com/shapeable/image/upload/c_limit,w_128/v1790130863/rhodian/banner/construction-plans_image__iStock-2180354982_ru6pox.jpg"}}}},"type":{"id":"67eb766aab8387072860c8e4","name":"Insights","slug":"insights","__typename":"PostType"},"published":"2026-09-23T02:37:37.97","authors":[{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b324281a889e82c7720b43","name":"Nicholas Vernon","slug":"nicholas-vernon","path":"/people/nicholas-vernon","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/nick-vernon-0a841531b","photo":{"id":"image_rhodian/person/nicholas-vernon_photo__scope1_uybwte","url":"https://res.cloudinary.com/shapeable/image/upload/v1723015971/rhodian/person/nicholas-vernon_photo__scope1_uybwte.webp","url2x":null,"type":"image/webp"}},{"openGraph":{"image":{"url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null}},"_schema":{"label":"Person","pluralLabel":"People"},"id":"66b325d41a889e82c7720b70","name":"Robert Higginson","slug":"robert-higginson","path":"/people/robert-higginson","organisation":{"id":"66975f532512c86d90027d48","name":"Scope Underwriting"},"linkedin":"https://www.linkedin.com/in/rob-higginson-07883377","photo":{"id":"image_rhodian/person/robert-higginson_photo__scope2_znmyfi","url":"https://res.cloudinary.com/shapeable/image/upload/v1723016439/rhodian/person/robert-higginson_photo__scope2_znmyfi.webp","url2x":null,"type":"image/webp"}}]}}]}}}