Insurance costs are becoming a serious business issue across Australia.
Builders are feeling the pressure most sharply. Some construction businesses report premium increases of up to 300% across public liability, professional indemnity, contract works and other construction-related covers.
Homeowners and investment property owners are also seeing higher renewal prices. In some property insurance lines, premiums are rising at around double the rate of general inflation.
This August 2026 update explains what is driving the increases and what Brisbane and Queensland customers can do now.
Builders are facing premium increases of up to 300%
The construction insurance market has become difficult for many small and medium-sized builders.
Some businesses that previously paid $15,000 to $20,000 a year for a package of construction covers now face renewal costs of $40,000, $60,000 or more.
In some reported cases, premiums have increased by 100% to 300% over a relatively short period.
These increases are not always linked to a new claim or a change in the business. Some builders with long trading histories and no recent claims are still facing much higher prices.
Construction insurance has become more expensive for several reasons:
- Building materials cost more.
- Labour and specialist trades cost more.
- Repairs and rebuilds take longer.
- Construction claims are becoming more expensive to settle.
- Insurers are more cautious about construction risks.
- Legal disputes and liability claims are placing more pressure on insurers.
- Some insurers are reducing their appetite for certain projects and building activities.
This does not mean every builder will receive a 300% increase. A well-managed, lower-risk construction business may receive a smaller increase or a more stable renewal offer.
However, the market is clearly under pressure.
Builders can review suitable cover through the construction and business insurance services available from Business Insurance Consulting.
A national inquiry into small business insurance is underway
A national inquiry into small business insurance is examining affordability and access to cover.
The inquiry is considering why premiums have increased so sharply for some small businesses. It is also looking at why insurance has become harder to obtain in certain industries.
The concerns go beyond the premium itself.
Small builders are often asked to provide detailed financial information, project records, cash flow forecasts, subcontractor details, work-in-progress reports and claims histories.
For a large company, this paperwork may be handled by a dedicated compliance or finance department.
For a small Brisbane builder, the business owner may need to complete it after a full day on site.
The final report is expected later in 2026. It may provide recommendations about transparency, access and the way small businesses are assessed.
Until then, businesses should not rely on possible future changes. Insurance decisions still need to be managed under current market conditions.
Double-digit premium growth may continue
Insurers have warned that double-digit premium growth is likely to continue in some areas.
The main drivers include:
Natural disaster costs
Floods, storms, cyclones and bushfires create large volumes of claims.
Queensland property owners understand how quickly severe weather can affect homes, commercial buildings, stock and equipment. Even a smaller storm can cause business interruption when electricity, access roads or suppliers are affected.
The cost of rebuilding after a disaster has also increased. Higher materials, labour and compliance costs can all increase the size of a claim.
Construction claim inflation
Construction claim inflation means that the cost of settling a building-related claim is increasing.
A repair that cost $100,000 several years ago may now cost considerably more. Delays can add temporary accommodation, storage, project management and alternative premises costs.
This affects property, landlord, home, business interruption and construction policies.
A more litigious environment
Businesses are also operating in a more legalistic environment.
Customers, contractors, tenants and other third parties may make claims for injury, property damage, professional mistakes or financial loss.
Even when a business believes it has done nothing wrong, it may still need to respond to a claim and obtain legal advice.
This is one reason public and product liability insurance remains important for many businesses.
What this means for Brisbane and Queensland businesses
A higher renewal price does not automatically mean the policy is poor value.
It may reflect increased exposure, higher rebuilding costs or a change in the insurer’s view of the risk.
But a renewal should still be checked carefully.
Business owners should ask:
- Has the sum insured kept pace with current replacement costs?
- Are the business activities described accurately?
- Have new services, products or locations been added?
- Are subcontractors managed and documented properly?
- Are the liability limits high enough for current contracts?
- Has the business taken on larger or more complex projects?
- Is business interruption cover based on realistic turnover and recovery time?
- Are there exclusions that could affect an important activity?
- Is the excess suitable for the business’s cash flow?
- Are there other insurance options available?
Cutting cover without understanding the consequences can create a larger problem later.
For example, reducing a building sum insured may lower the premium. But it can also increase the risk of underinsurance after a major loss.
Homeowners should review rebuilding costs
Home insurance premiums have risen sharply across Australia over the past five years.
Brisbane has several different property risk zones. Flood exposure, storm activity, construction costs and local rebuilding conditions can all affect the price of cover.
The key issue is not only the premium.
The building sum insured must be high enough to rebuild the home after a total loss. This amount may need to include demolition, debris removal, professional fees, building code upgrades and temporary accommodation.
A property renovation can also change the insurance position.
New kitchens, bathrooms, extensions, sheds, solar systems, pools and improved landscaping may increase the cost of replacement.
Homeowners can learn more about protecting the building and contents through home and contents insurance.
Investment property owners face a double risk
Landlords are dealing with both higher insurance costs and rising property management expenses.
A rental property may be affected by storm damage, flood, fire, theft, accidental tenant damage or loss of rental income.
The right policy depends on the property, its location, the type of tenancy and the owner’s financial exposure.
A low premium may not provide suitable protection if it leaves out important benefits.
Investment property owners should review:
- The building sum insured.
- Landlord contents such as carpets, curtains and appliances.
- Loss of rent cover.
- Tenant-related damage cover.
- Legal liability protection.
- Unoccupied property conditions.
- Flood and storm cover.
- The policy excess.
Business Insurance Consulting can help investment property owners review these areas through landlord insurance guidance.
Why Business Insurance Consulting helps in a hard market
Business Insurance Consulting is a specialist local broker for Brisbane, Queensland and Australian business risks.
A broker cannot remove market-wide increases. However, Business Insurance Consulting can help you respond to them in a more structured way.
Access to more insurance markets
Business Insurance Consulting has access to more than 150 specialty insurance markets.
This can help when an existing insurer will not offer terms, has reduced capacity or has applied a large increase.
Different markets may assess the same business differently. The quality and detail of the information provided can also affect the result.
A proper policy review
Business Insurance Consulting reviews more than the renewal price.
The review can consider the business activities, assets, contracts, claims history, locations, turnover, projects and risk controls.
This helps identify cover that may no longer be suitable.
It can also identify missing cover before a loss occurs.
Protection against underinsurance
Underinsurance occurs when the amount insured is not enough to repair, rebuild or replace the insured property.
It is a growing concern because construction costs have increased quickly.
Business Insurance Consulting can help check whether property, stock, equipment, business interruption and liability limits still reflect the current business.
Practical risk management
Risk management means taking reasonable steps to reduce the chance or cost of a loss.
For a builder, this may involve stronger subcontractor records, safer site processes, contract reviews and better project documentation.
For a property owner, it may include roof maintenance, drainage improvements, security measures and regular inspections.
Good risk management may not guarantee a lower premium. But it can support a clearer underwriting submission and help demonstrate how the risk is controlled.
Support when a claim occurs
A claim can be stressful, especially when the business is already dealing with damage, delays or lost income.
Business Insurance Consulting can help explain the claims process, gather relevant information and communicate with the insurer.
After an incident, make sure people are safe, take reasonable steps to prevent further damage, photograph the loss and keep relevant documents.
Do not admit fault, agree to a settlement or dispose of damaged property before receiving suitable guidance.
Read the claims steps from Business Insurance Consulting and report an incident as soon as possible.
A prepared review is better than a last-minute reaction
The current market is challenging.
Builders are facing major premium pressure. Homeowners are dealing with higher rebuilding costs. Investment property owners need to protect both the asset and the rental income it produces.
The best time to review insurance is before the renewal deadline or before starting a new project.
Business Insurance Consulting can help Brisbane and Queensland customers understand the options, prepare accurate information and make decisions based on the risks that matter most.
Disclaimer: This info is general advice only and doesn't consider your personal goals or financial situation. Before making a decision, please read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD). Give us a shout if you need specific advice!
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