This is the backdrop brokers are navigating when placing Contract Works, Construction Liability and associated Professional Indemnity exposures.

From 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.

For 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.