A court ruling against Transport NSW over “private nuisance” caused by the Sydney light rail project has implications across key insurance classes, according to broker Lockton.

The High Court decision – handed down late last year – overturns a lower court’s findings and states the public authority was liable for disruptions arising from construction work.

Businesses in a group lawsuit against Transport NSW alleged prolonged noise, dust, access restrictions and delays materially interfered with the use and enjoyment of their premises.

The broker says the ruling is “reshaping how nuisance risk is understood across major construction and infrastructure projects.

“For project owners, principals, contractors, developers and insurers, this represents a meaningful shift in how project risk, stakeholder impacts and insurance exposures should be assessed and managed.”

Lockton says the decision highlights emerging themes including economic loss exposure, with potential impacts on business interruption claims.

The ruling has implications for public and products liability, construction works and principal-controlled insurance programs.

“The decision reinforces a key principle: duration, mitigation and control are central to assessing nuisance risk,” Lockton says in a white paper.

“In response, market practice is likely to evolve, with increased focus on … allocation of delay and disruption risk … alignment between contractual risk allocation and insurance coverage.”