Demand for LEG3 defect coverage has grown steadily following a period of insurer reluctance. This trend aligns with falling rates and heightened competition. As anticipated in mid-2025, coverage has stabilised and become consistent across the board.

Insurers now recognise the need to compromise to secure business and hit targets. While many maintain a conservative stance on sub-limits and higher exposures, competitive pricing may drive further flexibility as we move into 2026.

Carriers have adjusted their approach to minimum premium thresholds for new risks - a trend likely to persist. For complex erection all risks (EAR), there is still scope for tailored solutions at higher prices.

Market appetite remains diverse, with carriers open to reviewing a wide spectrum of risks. In the erection all risks (EAR) space, several new entrants are emerging to meet demand for tailored solutions to complex exposures, while contractors’ all risks (CAR) coverage continues to strengthen across the market. For plant and equipment, standalone reviews can be arranged, though coverage is more typically incorporated within annual policies.

The arrival of new insurers - such as Arch and Markel - is strengthening capacity for leading complex risks in the UK. Significant underwriter movement between companies is also supporting growth objectives. Lead line sizes are naturally increasing in response to these developments.