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Construction growth needs sharper insurance conversations

As construction activity begins to recover in South Africa, brokers face growing pressure to place cover quickly. Yet construction insurance remains highly contract-specific, requiring deeper technical conversations around project scope, liability, site conditions and risk exposure to avoid costly gaps at claims stage.
Written by
George Rodinis
Published on
May 18, 2026
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After years of subdued activity, delayed projects, constrained infrastructure delivery and pressure on contractor margins, there are real reasons for cautious optimism. Lower inflation, interest rates that have fallen from 11.75% to 10.25% over the past 18 months, and a government more openly committed to infrastructure repair are creating conditions for selective recovery. It may not be a broad upswing yet, but projects are moving again in pockets - and brokers need to be ready for the insurance conversations that follow.

A construction policy is only as good as the conversation that preceded it.

More projects mean more contract works exposures, more subcontractors, more materials on site, more plant movement, more liability exposures and more pressure to place cover quickly. But construction insurance is not a tick-box exercise. A Contractors All Risk policy is not simply something to arrange before the first team arrives on site. The contract, the scope of works, the project value, the duration, the site conditions and the parties involved all shape what cover is needed.

At Genlib, our view is simple: the contract governing the project must lead the cover.

That sounds obvious, but it is often where problems begin. A contractor may assume that an annual policy automatically covers every project. An employer may assume that existing property is included. A broker may assume that the contract value includes VAT, free issue materials and all relevant project costs. A project may run beyond the expected completion date without the period of insurance being extended. Materials may be stored off site without the necessary controls. Work may involve underground services, lateral support, water exposure or phased handover without those risks being properly considered.

These are the details that often determine whether a policy responds as expected after a loss.

Construction insurance requires a different level of discipline because each contract carries its own risk profile. The same contractor may move from a straightforward building contract to a more complex civil works project, or from a low-risk site to one involving excavation, existing structures or neighbouring property. The insurance conversation must move with the risk.

A construction policy is only as good as the conversation that preceded it.

George Rodinis
Chief Executive Officer at Genlib

In a competitive market, there is always pressure to produce terms quickly and keep the process simple for the client. That is understandable. But speed without proper risk understanding can create a false sense of security. The better approach is to ask the right questions early: What work is being performed? Who is responsible for insuring the works? Is the policy annual or project-specific? Does the contract fall within the permitted value and duration? Is there a maintenance period? Are there any unusual site conditions, existing property exposures, underground services, offsite storage requirements or testing and commissioning risks?

Genlib’s Contractors All Risk and Construction Industry Public Liability (CIPL) solution, underwritten by New National Assurance Company, is positioned around this practical reality. Section 1 covers contract works risks - the physical property insured from commencement through to handover and the maintenance period. Section 2 extends to construction-related third party liability arising from the performance of the insured contract. The purpose is not only to provide a product, but to help brokers match the cover to the realities of the project.

What differentiates Genlib is the technical support we provide to brokers. We help identify when a project may fall outside standard annual cover, when specific underwriting is required, and when a seemingly simple contract needs closer attention. Our role is to help brokers ask better questions before the work starts, rather than help explain gaps after a claim.

If construction activity improves, brokers who are prepared will be well placed to benefit. The strongest broker proposition will not be speed alone. It will be speed supported by technical care, contract understanding and proper risk selection - with an underwriting partner who helps identify problems before cover is placed, not after a claim.

Profida is highly customisable

Profida is highly customisable to cater for specialist life, medical, and short-term insurance products (Yes, all 3). If you are an underwriting manager or broker looking for an Insurance Management Software Suite and want insight into your policy & claims administration, including underwriting, then Profida has what you need.

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