Why are Construction-Related Insurance Disputes on the Rise?

While litigation predictions at the start of the year pointed to a ‘perfect storm’ in the D&O insurance space, another area of insurance disputes has been slowly on the rise, and lawyers say it is not looking likely to stop.

Construction sector insurance litigation has been slowly rising over the past decade, and Duncan Cotterill partner Tanya Wood said it has also become increasingly complicated, with a significant amount of work coming through around building integrity and structural defects.

She said the construction sector has been hit with many challenges over recent years, and this has come through in the increasing amount of disputes - something which will also ultimately means more claims for insurers.

‘What we’re seeing is an ongoing increase in construction-based insurance litigation, and that often means defective building claims with more nuances,’ Wood said.