That fragmentation extends into the insurance market’s own governing language. Gemma Claase, head of energy transition for Howden Insurance Brokers’ Pacific business, pointed to the London Engineering Group’s (LEG) three separate defect clauses – LEG 1, LEG 2, and LEG 3 – as a persistent source of claims contention. The London Engineering Group told an industry conference in June 2026 that it plans to release updated LEG 3 and other clauses addressing construction defects by late summer, with the aim of bringing clarity following legal rulings that left buyers, brokers, and carriers uncertain about the scope of cover under construction all-risk policies. In July 2026, the London Engineering Group became affiliated with the International Underwriting Association (IUA), with its model clauses to be incorporated into IUA resources going forward. “This is really something developers should check with their broker,” Claase said, recommending a pre-loss claims workshop with a lead underwriter to establish how specific wording would be interpreted before any dispute arises.
