New single-project option signals more movement in construction insurance

The new format is designed for one nominated project, with cover running from commencement through to the end of the maintenance period. Reported product settings include material damage capacity up to $30 million contract value, optional legal liability up to $20 million, and a combined construction and maintenance period of up to 48 months. Hutch also lifted its annual construction maximum contract value from $20 million to $30 million per insured contract, while increasing the available contractors plant, tools and equipment limit from $50,000 to $250,000, subject to stated item limits.

For builders and project owners, the development is useful less because of one provider's product and more because of what it says about market direction. After several years in which construction insurance could be difficult to place for some risks, 2026 commentary from brokers and underwriting agencies has pointed to stronger competition, more available capacity and renewed appetite for well-presented accounts. That does not mean every project will be straightforward. Insurers are still distinguishing sharply between lower-complexity construction and risks involving heavier civil works, industrial exposures, difficult locations, long durations or adverse claims histories.

The single-project structure may be relevant where a builder, principal or contractor wants the policy arranged around one defined job rather than a portfolio of works. By contrast, annual policies are generally built for eligible projects undertaken during a policy period, subject to declarations, maximum contract values and other conditions. The distinction between single project and annual cover remains important because a mismatch can create problems with contract requirements, certificates of currency, project values or maintenance-period expectations.

There are also clear limitations. The Hutch product is described as applying to projects in Australia below the 26th parallel south and is not positioned for trades, owner-builders, annual policies under the single-project format, heavy civil works, industrial projects or engineering works. Those exclusions show why builders should avoid assuming that a broader market automatically means universal availability.

In practical terms, this is a reminder to prepare insurance information early. Project value, construction method, site location, subcontractor arrangements, security, existing structures, design responsibility and prior claims can all influence appetite. It is also important to read the policy wording, limits and exclusions rather than relying only on headline capacity. More choice is welcome, but contract works insurance still depends on the detail of the project and the insurers underwriting criteria.