Key Points
- Marsh has launched two insurance facilities, Strada and Machina, to address insurance challenges faced by UK construction contractors.
- Strada provides project-specific construction all-risks (CAR) and third-party liability (TPL) cover for road and highway contractors.
- Strada offers up to £1 billion in construction all-risks cover and up to £1 million in third-party liability cover, according to Insurance Times.
- The road construction facility includes two months of free extension cover and policy provisions addressing project delays, phased completions and roads opened to traffic before formal handover.
- Machina provides insurance for contractors’ plant and equipment through standalone placements and annual construction programmes.
- Machina uses a pre-agreed rating matrix to give contractors greater consistency and predictability in insurance pricing.
- Guy Fitzgibbon, head of global contractors at Marsh Risk, said the facilities aim to improve pricing certainty, speed up insurance placement and support more consistent claims handling.
- The launches come as GlobalData forecasts annual UK construction industry growth of 3.2% between 2027 and 2030, driven by investment in transport infrastructure, data centres and housing.
- Marsh’s Q1 2026 UK construction market review identified ample insurance capacity and downward pricing trends in the market.
Marsh has launched two specialist insurance facilities designed to address the distinct risks facing UK road construction contractors and businesses operating construction plant and equipment. The new products, named Strada and Machina, aim to provide more tailored cover, greater pricing certainty and a more efficient insurance placement process for contractors managing complex projects.
As reported by Mark Rosanes of Insurance Business, Strada provides project-specific construction all-risks and third-party liability insurance for UK road and highway contractors, while Machina covers plant and equipment through standalone arrangements and annual construction programmes.
Both facilities are available immediately, according to the report.
The launch addresses two areas where construction businesses can encounter difficulties when arranging insurance. Road and highway projects may experience delays, phased handovers and periods when completed sections are already open to traffic, creating exposures that can be difficult to accommodate under conventional policy wording. Meanwhile, contractors operating machinery and equipment across multiple projects can face inconsistent pricing and uncertainty when arranging cover.
Coverage published by Insurance Times on 19 October 2026 also highlighted the facilities’ focus on faster placement and predictable pricing. The publication reported that Strada offers up to £1 billion in construction all-risks cover and up to £1 million in third-party liability protection, while Machina uses an agreed rating structure for plant and equipment insurance.
The two facilities address different requirements within the construction insurance market. Rather than treating every project or item of equipment in the same way, Marsh has developed separate arrangements for road construction risks and contractors’ machinery.
How Does Strada Address Insurance Challenges for Road Contractors?
Strada is designed for UK road and highway contractors that require insurance tailored to the practical circumstances of infrastructure projects. According to Mark Rosanes of Insurance Business, the facility combines construction all-risks (CAR) insurance with third-party liability (TPL) cover.
Construction all-risks insurance generally protects against specified physical loss or damage associated with insured construction works, subject to policy terms, exclusions and conditions. Third-party liability cover addresses eligible claims arising from injury to other people or damage to third-party property.
The combination is relevant to road construction because contractors must manage risks associated with the works themselves as well as potential liabilities involving other parties.
Strada also incorporates policy clauses developed specifically for road and highway projects. These provisions address extensions to construction periods, phases when roads or structures are open to traffic, and projects completed through successive stages rather than a single final handover.
As reported by The Construction Index, the facility includes dedicated provisions for these circumstances, reflecting the challenges contractors can face when construction schedules and operational arrangements overlap.
Road infrastructure projects do not always follow their original timetable. Weather conditions, engineering complications, changes to project requirements and other operational issues can extend construction periods. Where an insured project continues beyond its expected completion date, the contractor may need to arrange an extension to maintain appropriate insurance protection.
Strada is intended to address these requirements through a product structure developed specifically for road construction exposures.
What Insurance Limits and Extension Benefits Does Strada Offer?
According to Iris Hakaj of Insurance Times, Strada provides confirmed insurance limits of up to £1 billion for construction all-risks cover and up to £1 million for third-party liability risks.
The limits provide an indication of the scale of protection available through the facility, although the coverage applicable to an individual contractor or project will depend on the placement and relevant policy terms.
A further feature is two months of free extension cover. This provision is intended to help address the additional insurance costs that can arise when construction projects run beyond their planned completion dates.
Mark Rosanes of Insurance Business reported that extension premiums have historically been a point of friction in road construction insurance, particularly where the cost of extending cover has been disproportionate to the original premium.
For contractors, project delays can affect more than construction schedules. They can also influence financing arrangements, labour requirements, equipment deployment and the duration of insurance exposure. The cost of maintaining cover for an extended period can therefore become an additional consideration when a project does not finish on time.
The inclusion of two months of free extension cover gives Strada a specific feature intended to address that issue. The precise application of the benefit remains subject to the facility’s policy wording and applicable conditions.
The facility is underwritten by a panel of insurers and reinsurers, according to Insurance Business and The Construction Index. This underwriting structure supports the provision of substantial insurance capacity for eligible road construction placements.
Why Are Phased Completions and Open-to-Traffic Periods Important?
Phased completion is common in infrastructure work where a project comprises multiple sections or structures that can become operational at different times.
A road may reopen to traffic before every part of the wider project has been formally handed over. Similarly, individual structures may enter use while other construction activities continue elsewhere on the site.
These arrangements can create overlapping exposures. Contractors may still be responsible for unfinished work while members of the public are using completed sections of the infrastructure.
In the original Insurance Business report, Guy Fitzgibbon, head of global contractors at Marsh Risk, explained that road and highway projects frequently experience extended work periods, with roads and structures sometimes open to traffic before formal handover. He said these circumstances result in prolonged exposure for construction contractors ahead of completion.
Strada’s specialist clauses are intended to address these situations more directly than standard construction all-risks wording may do.
This does not mean every possible delay or liability is automatically covered. Insurance protection depends on the terms of the policy, the circumstances of a claim and any relevant exclusions. However, designing cover around the characteristics of road projects may help contractors and brokers identify and address particular insurance requirements during placement.
What Is the Machina Plant and Equipment Insurance Facility?
Machina is Marsh’s second new facility and focuses on contractors’ plant and equipment rather than the construction works themselves.
Construction businesses use a wide range of machinery and equipment across projects, sites and annual operating programmes. Arranging suitable insurance can require contractors and their brokers to consider different equipment types, values, uses and placement arrangements.
As reported by Mark Rosanes of Insurance Business, Machina offers a single, pre-agreed rating matrix intended to provide a more consistent basis for pricing plant and equipment insurance.
The facility accommodates both standalone placements and annual construction programmes. This gives contractors a framework for arranging cover according to the scale and requirements of their operations.
Insurance Times reported that Machina is underwritten by a single insurer, with capacity tailored to the scale and scope of individual placements. Marsh’s official information on the facility identifies Allianz as the insurer supporting the arrangement.
The approach differs from Strada’s emphasis on specialist clauses for road construction. Machina concentrates on creating a consistent pricing structure for equipment-related risks.
For contractors that use machinery across multiple projects, pricing consistency can help when preparing budgets and comparing the insurance costs associated with different work programmes. A pre-agreed rating matrix may also make the basis of pricing easier to understand when arranging or renewing cover.
However, the facility does not eliminate the need to assess the specific equipment, its intended use or the terms of an individual insurance placement.
How Could Machina Improve Pricing Certainty for Contractors?
Insurance pricing can vary according to the equipment being insured, the circumstances in which it operates and the scope of the required protection. When contractors arrange cover for different projects or equipment schedules, variations in pricing can make it more difficult to forecast expenditure.
Machina is designed to address this challenge by providing a pre-agreed rating matrix for eligible plant and equipment placements.
According to Insurance Business, the facility is intended to cover the range of contractors’ plant and equipment requirements across standalone and annual programmes. Its structure aims to reduce uncertainty caused by pricing that may otherwise vary between placements.
The practical benefit for contractors is greater visibility when considering insurance costs as part of wider project budgets and operational planning.
Equipment insurance is one component of construction expenditure, alongside labour, materials, transport, maintenance and other operating costs. Greater predictability in this area may help businesses prepare more consistent estimates, although actual premiums and available capacity will depend on the individual placement.
The facility also provides an alternative to treating each equipment insurance arrangement as an entirely separate pricing exercise. A consistent rating framework can offer a clearer starting point for discussions between contractors, brokers and the insurer.
Marsh has presented Machina as part of its broader effort to improve the efficiency of insurance placement in areas where contractors have historically encountered challenges.
Who Is Guy Fitzgibbon and What Has Marsh Said About the Launch?
Guy Fitzgibbon, head of global contractors at Marsh Risk, described road and highway projects as a central part of the UK’s infrastructure ambitions but highlighted the complexity of insuring them.
As quoted by Mark Rosanes in Insurance Business, Fitzgibbon said: “Road and highway projects sit at the heart of this ambition, but they remain one of the most complex risks to insure.”
His comments focused on the extended work periods and early use of roads or structures that can occur before formal project handover. These circumstances, he explained, can leave contractors exposed for longer than originally anticipated.
In coverage published by Insurance Times, Fitzgibbon said the new facilities were intended to provide UK construction contractors with greater pricing certainty, faster placement and more consistent claims handling in two areas of risk that have historically been difficult to insure efficiently.
He also linked the launch to the UK’s infrastructure ambitions, arguing that suitable risk-transfer arrangements would be important as the country sought to deliver future transport and building projects.
The comments set out Marsh’s stated objectives for the facilities. They do not establish that every contractor will experience lower premiums or faster claims outcomes, as those results will depend on the circumstances of individual placements and claims.
Nevertheless, the launch represents a product-development response to specific insurance requirements within the UK construction sector.
What Is Driving Demand for Construction Insurance in the UK?
The facilities have been introduced against a backdrop of expected growth in UK construction activity.
According to the GlobalData Q2 2026 UK Construction Market report cited by Mark Rosanes of Insurance Business, the UK construction industry is forecast to grow by 3.2% annually between 2027 and 2030.
The forecast identifies investment in transport infrastructure, data centres and housing as important drivers of activity. Infrastructure is described in the report as the dominant growth sector, with road and highway schemes forming part of that pipeline.
Construction growth can create additional demand for insurance as businesses undertake new projects, deploy equipment and manage changing operational exposures. Larger or more complex projects may also require insurers and brokers to consider how coverage responds to delays, phased completion and liability risks.
However, a projected increase in construction activity does not automatically translate into higher insurance premiums or stronger profitability for insurers. Market conditions, competition, claims experience and underwriting decisions also influence pricing and available capacity.
The significance of the growth forecast for Marsh’s announcement is that it provides a broader commercial context for developing specialist insurance arrangements.
By offering distinct facilities for road construction and plant and equipment, Marsh is seeking to address risks associated with different parts of the construction process.
What Are Current Conditions in the UK Construction Insurance Market?
The launch also comes amid changes in insurance capacity and pricing.
Mark Rosanes of Insurance Business cited Marsh’s Q1 2026 UK construction market review, which reported ample insurance capacity, supported by newer market participants and expanded capacity from established insurers. The review also indicated that pricing was trending downwards.
Greater capacity can give businesses more options when arranging cover, while competition among insurers may influence the terms and prices available for particular risks. The effects, however, can vary by insurance class, project profile and underwriting requirements.
In such an environment, insurers and brokers may need to distinguish their offerings through factors beyond price alone. These can include policy wording, the speed of placement, the availability of specialist underwriting expertise and the handling of claims.
Strada and Machina are positioned around these considerations. Strada provides clauses aimed at the specific challenges of road and highway construction, while Machina offers a pre-agreed pricing framework for plant and equipment.
Sarah Jolly of Commercial Risk also reported on Marsh’s launch of the two facilities, describing one as focused on UK road projects and the other on protecting critical plant and equipment. The report highlighted the facilities’ role in responding to contractors’ insurance needs.
The combination of available market capacity and specialist product design provides the context for Marsh’s latest move. Rather than relying exclusively on general market pricing, the facilities seek to address practical difficulties encountered by contractors and their brokers.
What Could the New Facilities Mean for UK Construction Businesses?
The potential implications of Strada and Machina differ according to the risks a contractor needs to insure.
For road and highway contractors, Strada offers a project-specific arrangement that recognises the possibility of extended construction periods, phased completion and roads opening to traffic before formal handover. Its two months of free extension cover may also help eligible contractors manage a particular cost associated with project delays.
For contractors seeking insurance for machinery and equipment, Machina offers a pre-agreed rating structure intended to make pricing more consistent across standalone placements and annual programmes.
Both facilities are intended to improve the process of arranging insurance in areas where the risks can be difficult to place efficiently. Their introduction may be relevant to contractors reviewing their insurance arrangements as their project portfolios, equipment requirements or operating schedules change.
Businesses will still need to assess policy conditions, limits, exclusions and the suitability of the cover for their specific operations. The availability of a specialist facility does not remove the need for appropriate risk assessment or careful review of insurance terms.
The announcement also illustrates how specialist insurance products can respond to the operational characteristics of individual industries. In construction, where project schedules, equipment requirements and site conditions can vary considerably, a more tailored approach may help align insurance arrangements with the risks being managed.
Understanding project delivery, contractual obligations, risk allocation and operational planning remains relevant to businesses undertaking infrastructure work. These considerations also form part of the wider professional knowledge associated with Construction and Civil Engineering, particularly where construction projects involve complex delivery arrangements and significant equipment requirements.
What Happens Next for Strada and Machina?
Both facilities are available immediately, according to Insurance Business. Contractors and their insurance brokers can therefore consider whether the new arrangements are suitable for upcoming projects, existing programmes or equipment insurance requirements.
Strada’s relevance will depend on the characteristics of individual road and highway projects, including their construction schedules, handover arrangements and liability exposures. Machina’s suitability will depend on contractors’ equipment portfolios, programme structures and insurance needs.
The launch does not, by itself, establish how widely the facilities will be adopted or how they will affect market-wide premiums, claims outcomes or insurance availability. Those developments will depend on future placements and market experience.
For now, Marsh has introduced two distinct solutions intended to address identified challenges in UK construction insurance. Strada focuses on road project risks and extensions, while Machina seeks to provide a consistent pricing framework for contractors’ plant and equipment.
Together, the facilities represent Marsh’s latest effort to provide more tailored insurance arrangements for a construction sector expected to experience continued activity in transport infrastructure, data centres and housing over the coming years.