For contractors, a thinner pipeline can mean more than fewer enquiries. A project put on hold may leave work, materials or equipment exposed, while a drop in turnover can make insurance costs harder to manage. It is understandable to look for savings, but cutting cover without checking what risks remain can create a bigger problem when work picks up again.
The latest planning figures show the pressure in the housing pipeline. England recorded 45,315 approvals for new homes in Q2 2026, the lowest quarterly total since 2012. The 12-month total was 214,515, the lowest since 2013 and 36% below the 2017 peak, according to IN Site and the Architects’ Journal.
These are planning approvals, not a direct measure of homes completed or construction output. But fewer permissions can mean fewer potential projects moving through the pipeline. Separately, GB News reports that housebuilding output has fallen around 11%, putting the 1.5 million homes target under pressure.
The squeeze is particularly sharp for smaller builders. Savills reports that full planning permission now takes nearly 12 months on average in England. The latest Home Builders Federation SME survey says development viability and planning delays remain major constraints, and 36% of respondents had already delayed, redesigned or cancelled schemes in anticipation of the Building Safety Levy.
The levy took effect on 1 October 2026 and applies to qualifying schemes of 10 or more homes and student accommodation with 30 or more bedspaces. Brownfield sites receive a 50% discount, while schemes below the relevant thresholds are exempt. Smaller sites may therefore represent a greater share of available work, but every contract still needs a close insurance check.
Here are five practical moves to consider when work slows.
1. Update turnover and wage figures honestly
If your business has fewer active projects or employees than expected, tell your broker and check how your policy uses turnover, payroll or wage declarations to calculate the premium. Those figures should reflect your actual business, not last year’s activity or a more optimistic forecast.
It can be tempting to reduce estimates aggressively to bring the premium down. I think that is a false economy. If the figures are inaccurate, the policy may not respond as you expect: depending on the wording and circumstances, under-declaration can lead to a reduced claim payment or other coverage problems. The answer is not to keep paying for exposure you no longer have, but to update it accurately and ask how changes will affect your cover.
Make sure you understand when you need to report changes, too. Some policies are adjusted at renewal, while others require declarations during the policy period. Keep records of wages, turnover and subcontractor costs so that any adjustment can be supported.
2. Tell your insurer when a site is paused
A stalled site is not necessarily a risk-free site. Partially built homes, materials and temporary works may remain vulnerable to theft, vandalism, fire or storm damage. The project may also still leave you with contractual responsibilities, even if no one is currently working there.
Tell your broker or insurer when work is paused, delayed or the site becomes unoccupied. Ask whether your contractors’ all risks or contract works cover remains in force, and whether any site-specific conditions apply. These might relate to security, inspections, heating, water supplies or how materials are stored. Do not assume that an existing policy automatically covers every period of inactivity.
If you need cover to continue for a longer period, agree the position in writing. This is a sensible time to check whether hired-in plant, off-site materials and temporary structures are included, and whether the limits still fit what is actually at risk.
3. Don’t cancel liability cover between jobs
A gap between contracts does not always mean a gap in liability. Someone could make an allegation about work you completed earlier, or an injury or property damage claim might only come to light after the job has finished. The relevant policy and notification terms matter, so check them before cancelling or changing cover.
Employers’ liability insurance is generally a legal requirement for businesses that employ staff. A quieter workload does not remove that obligation if you still have employees. If your business is dormant or close to dormant, check whether anyone remains employed and discuss your position with your broker rather than assuming the policy is no longer needed.
Public liability also deserves a careful review. If you are between projects, the premium may be adjustable, but stopping cover altogether can leave you exposed to claims connected with your work. For a broader review of the cover contractors commonly need, see our guide to choosing construction contractor insurance.
4. Check insurance requirements before accepting smaller or different work
With pressure on larger schemes, contractors may look to smaller developments, brownfield sites or unfamiliar packages. These jobs can provide useful opportunities, but the contract still needs to fit your insurance.
Before signing, check the required public liability limit, any employers’ liability requirements, contract works arrangements and the insurance responsibilities assigned to each party. Look closely at who is responsible for insuring materials, existing structures and work in progress. A contract can require cover that your current policy does not provide, so it is better to find that out before work starts.
Also review professional indemnity if you take on design, specification or technical advice. Defect allegations may surface long after practical completion, and professional indemnity policies can depend on continuous cover and the policy’s retroactive date. If your role changes, or a contract asks you to accept design responsibility, ask your broker to check the wording before agreeing.
We have also covered why a seemingly small contract term can cause problems in the one clause in your contractors insurance that could leave you uncovered.
5. Talk to your broker before reducing or lapsing cover
If cash flow is tight, speak to your broker before cancelling a policy or reducing limits. There may be options to adjust cover to reflect your current activities, review payment arrangements or change how a policy is structured. What is available will depend on the insurer, the policy and the risks you still have.
Be open about what has changed: the number of active sites, staff, turnover, subcontractors, plant and the type of work you are pursuing. That gives your broker a fair basis to explore options. It is much safer than allowing a policy to lapse and discovering later that a risk remained uninsured.
A break in cover may also create difficulties when you seek new insurance or need continuity for claims-made cover, such as professional indemnity. If you are considering a reduction, ask what it means for existing projects and past work, and request confirmation of any agreed changes.
Review the cover around the work you still have
A quieter pipeline calls for a practical review, not a blanket assumption that every policy can be cut. Check that your declarations are accurate, paused sites are properly protected, liability cover remains suitable and new contracts do not bring responsibilities beyond your insurance.
Moyak Insurance Services arranges business insurance for contractors across Essex, Kent and London. Call 01375 392087 or email info@moyakinsurance.co.uk to arrange a cover review.