February 2026
Cheaper insurance, sharper decisions
Insurers are actively chasing market share in the professional indemnity insurance market – and that may seem like good news. But not all policies are created equal, Bellrock’s risk advisors warn.
In Bellrock’s latest market update, Practice Leader for Construction Professionals Simon Gray points to particularly strong insurer interest in the small to medium-sized enterprise (SME) segment.
“The SME sector is particularly active and attractive to insurers, with the market cycle clock moving past 3pm. There continues to be ample capacity for SMEs, with insurers looking to build their books within this perceived lower risk area of the market. Insurance rates are still dropping for SMEs and we are seeing significant competition.”
Fewer insurers are targeting larger and more established companies, Simon notes. “The focus here remains on breadth of cover, longevity of the insurer, claims handling skills and proven expertise.”
Bellrock is seeing some rate variation, “but we urge caution when selecting an insurer”. Premiums are falling, but not all insurers will still be in the market when claims start to land. Bellrock notes one newer entrant has recently exited the market, and “we anticipate more will do so in the next 12 to 24 months.”
Source: Bellrock, 2026.
What SMEs need to know
- It’s a buyer’s market – for now. Insurers are actively targeting SMEs, with strong competition and falling premiums across much of the construction professionals market.
- Price isn’t the risk – insurer durability is. New entrants are competitive, but some may not be around when claims emerge. Insurer longevity and claims expertise matter as much as cost.
- Discipline shapes the outcome. Higher-risk activities – including high-rise residential, façades, design and construct and certification – attract closer scrutiny and tighter terms.
- Margin pressure increases claims exposure. Tight construction margins, insolvencies and fast-tracked delivery raise the risk of disputes and defects, particularly for SMEs.
- D&C cover can leave gaps. Relying solely on contractor-arranged professional indemnity insurance can expose both contractors and principals to exclusions, erosion and non-response.
- This window won’t stay open. A return to harder market conditions is expected within two to three years. SMEs have a limited opportunity to secure the right coverage.
Brisbane 2032 reshapes risk
Bellrock sees Brisbane 2032 as a live stress test. Olympics construction is already affecting contractor availability and supply chains, and fast-tracked projects can lead to claims. “Insurers are watching this space very carefully.”
A particular pressure point is professional indemnity (PI) insurance. “Government and contractors are asking for lead consultants to obtain their own standalone Project PI policies with very high limits,” duplicating insurance that would traditionally sit with the project owner, and straining an already tight market.
Bellrock is keeping a close eye on a wide range of issues that could impact markets, including the rate of construction insolvencies, partially stalled engineering reforms in NSW, payment legislation changes in Victoria and the implications of ‘forever chemicals’.
“We expect the return of the hard market sooner than most may expect – perhaps in the next two-to-three years.”
Read more in Bellrock’s January 2026 Construction Professionals Insurance Market Update.