Building Safety Act Changes: What Contractors Need to Know in 2026

Posted by Angus Nanan, Head of Construction, Kerry London Ltd

The Building Safety Act continues to reshape the construction landscape. What began as a regulatory response has now become a long-term shift in how risk is managed, allocated and insured across the industry.

For contractors, the implications are significant. Responsibilities are broader, accountability lasts longer, and scrutiny is higher at every stage of a project.

Understanding how these changes affect your business – and your insurance – is now essential.

What Has Changed Under the Building Safety Act?

The Building Safety Act introduced a new framework focused on higher-risk buildings, typically those over 18 metres or seven storeys.

Key changes include:

• Stricter dutyholder responsibilities across design, construction and refurbishment
• A gateway approval process at key project stages
• A requirement to maintain a clear “golden thread” of information
• Extended liability periods, including extended limitation periods of up to 30 years for historic work and 15 years for new projects

These changes are designed to improve safety and accountability. But they also increase the level of risk contractors carry – both during and long after a project is completed.

How This Impacts Contractors

Greater accountability across the project lifecycle

Contractors now play a more defined role in demonstrating compliance. This includes documenting decisions, managing risk and ensuring information is accurate and accessible.

The “golden thread” requirement means records must be maintained throughout the project’s lifecycle. Gaps in documentation can create exposure years after completion.

Longer-term liability

One of the most significant changes is the extension of liability periods.

Claims can now be brought many years after a project is finished. For contractors, this creates ongoing exposure that needs to be reflected in both risk management and insurance arrangements.

Increased scrutiny from clients and regulators

Project owners, developers and regulators are asking more questions. Contractors are expected to demonstrate:

• Strong quality assurance processes
• Clear risk management frameworks
• Transparency in materials, design and construction decisions

This is becoming a key factor in winning work, not just delivering it.

Pressure on Professional Indemnity Insurance

The Building Safety Act has had a direct impact on the Professional Indemnity (PI) insurance market.

Insurers are taking a more cautious approach, particularly for construction-related risks. This can include:

• Tighter policy wordings and exclusions
• Greater scrutiny of fire safety and cladding exposure
• Requests for detailed risk and compliance information
• More selective underwriting for higher-risk projects

For contractors, this means PI insurance needs to be carefully structured to reflect both current and long-term exposure.

What Contractors Should Be Doing Now

The focus is not just on compliance, but on demonstrating it clearly.

Practical steps include:

• Reviewing contracts to ensure risk is clearly defined and insurable
• Strengthening record-keeping to support the “golden thread”
• Ensuring clear allocation of responsibilities across the project team
• Reviewing Professional Indemnity insurance to reflect extended liability
• Engaging with brokers early when planning new projects

Taking a proactive approach will help protect both your business and your ability to secure future work.

How Kerry London Supports Contractors

We understand the impact these changes are having across the construction sector.

At Kerry London, we work closely with contractors to ensure insurance keeps pace with regulations and real-world risk.

• Tailored Professional Indemnity insurance aligned to your projects and exposure
• Access to specialist insurers, including Lloyd’s markets
• Support with contract review to identify potential issues
• In-house claims team to guide you when it matters most

Our approach is simple. We take time to understand your business, so your cover works when you need it.

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Kerry London is authorised and regulated by the Financial Conduct Authority. The company is a leading UK independent and Lloyd’s registered broker, which means that we work with a wide range of niche and major insurers.

This note is not intended to give legal or financial advice, and, accordingly, it should not be relied upon for such or regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this note, we have relied on information sourced from third parties, and we make no claims as to the completeness or accuracy of the information contained herein. You should not act upon information in this bulletin nor determine not to act without first seeking specific legal and/or specialist advice. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide herein and exclude liability for the content to the fullest extent permitted by law.