Marsh launches construction insurance facilities for road and plant risks

Marsh has launched two new insurance facilities for UK construction contractors, targeting complex road and highway projects alongside plant and equipment risks.

The broker said its new Strada and Machina facilities aim to provide greater pricing certainty and faster placement for risks that can be difficult to insure efficiently.

Guy Fitzgibbon, head of global contractors at Marsh Risk, said the facilities came as infrastructure investment and project complexity increased.

“Marsh’s new facilities give UK construction contractors greater pricing certainty, faster placement and more consistent claims handling in two areas of construction risk that have historically been difficult to insure efficiently,” he said.

Strada provides project-specific construction all risks (CAR) and third party liability (TPL) insurance for UK road and highway contractors. Underwritten by a panel of global insurers, it offers confirmed limits of up to £1bn for CAR and £1m for TPL.

Machina covers contractors’ plant and equipment through standalone placements or annual construction programmes. Underwritten by a single insurer, it uses a pre-agreed rating matrix to provide consistent pricing, with capacity tailored to the scale and scope of individual placements.

Addressing project delays

Strada also includes two months of free extension cover, addressing the additional costs contractors can face when projects overrun. Its policy clauses also cover challenges associated with phased completions and roads being opened to traffic before formal handover.

Marsh said the facilities were designed to support contractors as the UK construction industry prepares for further growth.

Fitzgibbon said: “As the UK looks to deliver on its infrastructure ambitions over the coming years, having the right risk transfer solutions in place will be critical – not just for contractors, but for keeping vital road, transport and building projects on track to support the country’s future infrastructure agenda.”

He cited projected annual construction industry growth of 3.2% between 2027 and 2030.