With the market having softened 12–18 months ago, many buyers have already benefited. Before conditions inevitably shift, it’s worth revisiting your arrangements and considering what steps you can take now to stay ahead of the cycle.

Our role is always to look ahead on your behalf. Strengthening your program puts you in a far better position when the cycle inevitably tightens again.

In this article, we outline some of the most meaningful areas where businesses can take advantage of current market conditions.

Industrial Special Risks (ISR)

With the softer market, it’s the moment to rebuild the foundations of your property and business interruption program with accuracy and confidence. It starts with getting declared values right. Inflation, supply chain delays and extended rebuild timelines continue to pressure reinstatement costs, so correct values are critical to avoiding underinsurance.

There’s also meaningful scope to enhance your Business Interruption cover, with broader options more accessible than they’ve been in years.

Key improvement opportunities:

• Increase indemnity periods to reflect longer rebuild and recovery timelines
• Boost claims preparation costs for better post‑loss support
• Lift sub-limits for flood, machinery breakdown, theft and environmental clean‑up
• Revisit high excesses introduced during the hard market and realign with risk appetite

Public & Products Liability

Liability programs were heavily restricted in the hard market, with insurers tightening coverage and adding exclusions. The softened environment provides room to challenge those restrictions and rebuild more robust protection.

Key improvement opportunities:

• Remove unnecessary exclusions introduced over the last few years
• Broaden coverage extensions, including:
  • Errors & Omissions
  • Contractual Liability
  • Product Recall
• Increase Goods in Care, Custody & Control limits to better match operational realities
• Strengthen alignment between policy wording and actual business activities

Professional Indemnity (PI)

With capacity returning to the PI market, businesses can secure more appropriately scaled cover that better aligns with contractual obligations and emerging exposures.

Key improvement opportunities:

• Increase PI limits to match contract requirements and aggregation risks
• Challenge restrictive exclusions, particularly:
  • Broad contractual liability carve outs.
  • Tailored exclusions applied in addition to the insurer’s standard policy wording.
  • Bodily injury and property damage exclusion. Particularly when client’s services have a manual component.
  • Prior services / activities that are outside of the policies retroactive date, which is the earliest date from which your policy will cover past work or past events. Always look to provide retroactive cover from business establishment date or “Unlimited”.
  • Cyber‑related exclusions that overlap with genuine professional services
• Update professional services definitions to reflect all current and foreseeable client activities. Overly narrow or historical descriptions are a common source of coverage disputes.

Directors & Officers (D&O)

Market conditions are allowing businesses to access stronger, more comprehensive D&O cover. With pricing stabilising and capacity increasing, meaningful enhancements are achievable.

Key improvement opportunities:

• Secure higher limits to better protect the board and executives
• Gain stronger insolvency protection amid an uncertain trading environment
• Clarify coverage for capital raising activities
• Review cross‑jurisdiction exposures to ensure protection across all operating locations

Don’t overlook the add‑ons

Cyber liability, marine transit, corporate travel and product recall often sit outside core programs, yet they address some of the most common and costly risks facing businesses today. With underwriting appetite improving, this is the right moment to strengthen or introduce these policies as part of a holistic risk strategy.

Act now, strengthen for later

Soft markets never last forever. This is your reminder to build an insurance program that is stronger, more resilient and better aligned to your long‑term strategy.

At PNO, our goal is always to help you stay one step ahead. To find out more or if you’d like to explore these opportunities within your own program, contact Daniel Reid at dreid@pno.com.au or call (03) 9536 7304.