Informed Insurance

The home of thought leadership by

Informed Insurance

Predictions
Or
Or
Environment

Prediction: Insurers face rising exposure from class actions at the intersection of infrastructure disruption and environmental harm

Environment
LinkedIn Email Share this prediction
Prediction

The Sydney Light Rail litigation demonstrated how the effects of prolonged construction - dust, noise, and access restrictions - can trigger nuisance claims against public authorities. Simultaneously, PFAS contamination linked to infrastructure sites, including airports and defence facilities, is fuelling environmental class actions over groundwater pollution and health risks. These cases reflect a growing trend where infrastructure projects are scrutinised not only for operational disruption but also for long-term ecological damage. Insurers must prepare for complex, multi-dimensional claims spanning public liability, environmental impairment, and directors’ duties. Policy wording around nuisance, pollution exclusions, and statutory authority defences will be critical. As regulatory oversight and community activism intensify, insurers will need to reassess underwriting strategies and engage proactively with insureds to manage emerging risks across Australia’s infrastructure landscape.

Back to Environment