The construction and infrastructure market has experienced a decade-long boom across Australia and New Zealand. As a result, insurers operating in this space have seen increased activity in the defect v damage paradigm. They also experience many non-weather losses being challenged by the difficult dynamic created by the LEG and DE series of exclusions, which regularly apply in Australian insurance losses.

We partner with insurance clients to navigate risks in pioneering construction and infrastructure projects across Australasia, keeping up with regulatory, environmental, and financial changes. Our team specialises in resolving complex issues under Contract Works / DSU Policies through project lifecycles.

Australia’s construction boom was fuelled by post-GFC Federal Government stimulus across the infrastructure sector. Our team has been at the front of most of the major CAR and EAR claims including roading upgrades, tunnels, bridges and rail networks – regularly dealing with complex technical issues on defects and damage, LEG2/3 and the regular range of construction-related exclusions.

Recent work

We act for the overseas insurers of a project specific contract works and DSU policy covering a $1.8billion highway project in Queensland. We are providing coverage advice in relation to several claims, some worth in excess of $100million each. We are advising on contentious issues of defect versus damage, LEG 3 application, differentiation between mere land and existing property and proper construction of a bespoke endorsement extending the Policy but substantially reducing the limit of indemnity. We are managing a suite of local and international experts across multiple disciplines including engineering, geology, construction programming and quantum.

We are advising a market of local and international insurers in several claims under a project specific contract works policy covering the construction of a tunnelled highway project in Melbourne. Claims involved damage arising from defective welding on structural steel elements, damage to and delay arising from bridge beams which fell during lifting operations and collapse of a cross-passage during excavation. Collectively the claims are worth over $200million in material damage plus DSU entitlements. We are managing and gathering evidence from local and international experts in tunnelling, crane lift design, welding, structural engineering, construction programming and quantum.

We are advising the local insurer and its reinsurers on coverage issues arising on a very significant claim under a project specific contract works policy in respect of a catastrophic collapse of a road tunnel in Sydney. The claim involves very complex issues of causation, LEG 3 application and proper application of various sublimits including for AICOW and expediting expenses.