Underinsurance remains one of the most pervasive, and least visible, risk exposures in major construction projects, often only surfacing when a loss occurs and recoveries fall short of expectations. This session explores how underinsurance can inadvertently arise through outdated declared values, incomplete understanding of project scope, inflation and cost escalation, contractual misalignment, programme structuring issues or restrictive policy wordings. It will examine the downstream consequences of underinsurance, including balance-sheet exposure, uninsured delay, disputes over indemnity and heightened friction during complex claims. A particular focus will be placed on the critical role of legal frameworks: how policy drafting, interpretation of wordings, jurisdictional nuances and claims litigation shape outcomes in practice.

Aimed at experienced practitioners, the session provides a forward-looking perspective on how risk managers can identify hidden gaps earlier, strengthen governance around values and coverage adequacy and work more effectively with brokers, insurers and legal advisers to reduce disputes and protect capital in an increasingly complex construction risk environment.