Leading insurance broker, risk management services and consulting firm Gallagher has shared critical insights on the evolving trends in construction insurance at the Cityscape Global in Riyadh.

In recent months, the construction insurance market has experienced a notable increase in capacity both locally and internationally. This surge is driving down premiums and presenting a unique opportunity for insureds to advocate for broader coverage.

While the future remains uncertain, Gallagher forecasts this trend to continue for at least the next 12 to 18 months, provided there are no significant losses in the region.

“The current soft market cycle has led to downward pressure on premiums, transforming it into a buyer’s market for construction insurance. We are taking advantage of this environment by pushing insurers on price and policy coverage for the benefit of our clients. At Gallagher we emphasise the importance of pushing insurers for enhanced cover whilst also achieving competitive pricing, thereby ensuring comprehensive protection for their projects,” commented Barry Jones, Executive Director — Power & Construction, Gallagher, Dubai.

“We advise businesses to adopt a holistic approach to risk management. Insurance should be viewed as one of several tools in a comprehensive risk mitigation strategy. As the construction landscape evolves, it's imperative for developers and contractors to remain vigilant about various risks they may not fully appreciate.”

He says the following are risks that many developers and construction companies do not fully appreciate but should be aware of:

* Decennial liability: A significant risk within the region that requires careful consideration by developers and contractors.

* Directors’ and Officers’ liability: With the increasing litigious nature of the region and more codified civil laws and regulation, protecting personal liabilities for directors, officers, and employees is crucial.

* Cyber Exposures: The rise of cyber threats poses substantial risks, especially as businesses face stricter data protection laws. It's essential to note that many standard property damage insurances including most construction policies, exclude damages resulting from cyber events. In addition specific cyber insurance policies can provide coverage for revenue losses arising from such incidents.  -TradeArabia News Service