Construction Safety Reform:
Liability is Rising and Company Management Needs to Change Direction
Jan 30, 2026
By: Lir Nisani – Content and Media Manager – Itzick Simon Agency
After years in which safety in the construction industry was perceived as an operational matter belonging mainly to the field, the new safety reform changes the rules of the game. The comprehensive update to the Safety Regulations in Construction Works, approved after a lengthy legislative process, does not deal only with protective equipment, scaffolding, or procedures. Instead, it creates a new concept of responsibility that climbs up the organizational pyramid and reaches the management of development and contracting companies.
The reform, which will come into force in October 2026, expands the circle of responsibility, strengthens requirements for risk management and documentation, and places office holders—CEOs, vice presidents, and directors—at the heart of the system.
To understand the real implications of this change, we spoke with two of Israel’s leading experts who are assisting companies in the industry in preparing for the reform:
Itzick Simon, an expert in construction and infrastructure insurance, founder and CEO of the Itzik Simon Agency; and Adv. Eldan Danino, founder of Eldan Danino & Co., a law firm specializing in safety law and workplace accidents, who represents construction companies, developers, and office holders in criminal, civil, and administrative proceedings in the construction and infrastructure sector.
Construction safety reform:
Responsibility is increasing and company management is required to change direction.
By: Lir Nissani – Content and Media Manager – Itzik Simon Agency
After years in which safety in the construction industry was seen as an operational matter that belonged mainly to the field, the new safety reform changes the rules of the game.
The comprehensive update to the safety regulations in construction work, which was approved after a lengthy legislative process, does not only deal with protective measures, scaffolding, or procedures, but creates a new concept of responsibility that climbs up the organizational pyramid and reaches all the way to the managements of the entrepreneurial and contracting companies.
The reform, which will take effect in October 2026, expands the circle of responsibility, strengthens risk management and documentation requirements, and places the office holders: CEOs, VPs, and directors at the heart of the system.
To understand the true implications of the change, we spoke with two of Israel's leading experts who assist companies in the industry in preparing for the reform:
Itzik Simon , construction and infrastructure insurance expert, founder and CEO of Itzik Simon Agency and Adv. Eldan Danino , founder of Eldan Danino & Co. – a law firm, expert in safety and occupational accident law, representing construction companies, entrepreneurs and officials in criminal, tort and administrative proceedings in the construction and infrastructure industry.
“This is not a technical reform, it is a managerial reform”
According to Itzick Simon, one of the most dramatic changes is the way the insurance world now relates to safety.
“Many companies still think that insurance is an automatic safety net. In reality, insurance is based on one basic assumption that the insured acts according to the law and takes reasonable precautions.
“From the moment the new regulations come into effect, they redefine what is considered ‘reasonable.’ Those who fail to comply may find in retrospect that the coverage simply wasn’t there.”
According to him, the direct meaning is a change in the threshold conditions for coverage:
- A mandatory and budgeted safety program.
- Appointment of new positions with defined responsibilities.
- Adjustments to contractor work policies, professional liability and office holders.
“This is not a threat or intimidation. This is the new insurance reality.”
According to Itzick Simon, one of the most dramatic changes is the way the insurance world now approaches safety.
“Many companies still think of insurance as an automatic safety net. In practice, insurance is based on one basic assumption: that the insured acts in accordance with the law and takes reasonable precautionary measures. From the moment the new regulations come into force, they redefine what is considered ‘reasonable.’ Anyone who fails to comply may later discover that the coverage simply isn’t there.”
According to him, the direct implication is a change in the threshold conditions for coverage:
A mandatory, budgeted safety program.
Appointment of new role-holders with clearly defined responsibilities.
Adjustments to policies for contractor’s works, professional liability, and directors and officers (D&O).
“This is not a threat or scare tactics. It’s the new insurance reality.”
Attorney Eldan Danino emphasizes that from the legal side, the reform breaks a perception that has been ingrained in the industry for years - that liability is something that can be "taken down."
“The legislator has clearly stated: There are obligations that the entrepreneur and management can no longer shirk.
Appointing a safety controller, approving a safety plan, allocating resources, these are new direct obligations that now apply directly and solely to the client.”
According to him, this means real and increased legal exposure, for both the developer and the contractor:
Liability in the event of an accident.
Criminal exposure in negligence cases, even those that previously would not have established criminal exposure.
And even personal responsibility of various office holders.
"The regulations create a new standard of conduct. Anyone who fails to comply with it will bear an incalculable legal liability and may even find themselves facing criminal prosecution for all that this entails."
Non-transferable warranty
One of the significant changes in the reform is the new status of the safety program .
What was previously perceived as a formal document for audit purposes is now becoming a central document in the management of the company.
“Once the safety plan is required as a condition for opening a site, and includes risk management, training, inspections, and permits, it becomes a management tool,” explains Simon.
Attorney Danino adds:
"And when this plan is connected to agreements and contracts - it is also an evidentiary tool, and when a safety incident occurs, in my experience, the investigating unit first and foremost requests to receive the collection of agreements related to that construction site."
"What is written in the safety plan imposes an obligation to implement. This is not the plan that is on the work shelf in the site offices on the site for beauty, but a plan that binds both the developer and the contractor, starting from the agreement level, and ending with its practical implementation on the ground."
The Safety Plan: From a Mandatory Document to a Management Tool
The reform adds new roles to construction sites, primarily safety inspectors and site managers on large projects.
Alongside the safety contribution, they also create new exposure points.
“These officials sign, report, and approve,” explains Simon.
“These are actions that have insurance and legal implications. Without appropriate coverage, the exposure is personal.”
New incumbents - new risks
As companies began to examine the implications, a clear gap became apparent:
Most of the existing training deals with construction sites, but very little addresses management .
From this gap was born the joint initiative of Itzik Simon and Attorney Eldan Danino:
Dedicated training for management of entrepreneurial and contracting companies, so that they know how to prepare properly and how to conduct themselves correctly during routine days and in general .
Another need emerges from the field: training for management
We asked the two what actually happens during the training.
Attorney Eldan Danino:
“We don't read regulations.
We sit down with management and ask tough questions:
Where is our responsibility?
Where do the agreements expose us?
And how to build plans and mechanisms that are there to help the company and its officers meet everything required of it by the amendment to the safety regulations, all in order to prevent any safety incident from occurring within the company's scope.
Itzick Simon:
“From the insurance side, we analyze real scenarios.
What will an insurance investigator check?
Where might a claim of disobedience fall?
And in most cases, the gaps are at the headquarters level, not in the field.”
“This is not a lecture - this is a desk”
According to the two, the training is intended for a very specific audience:
Management of entrepreneurial companies.
Management of construction and infrastructure companies.
CEOs, VPs, directors and in-house legal advisors.
“When the entire management hears the same message, a true alignment is created,” says Attorney Danino.
"This prevents different interpretations within the organization, and also creates a structural order on how to properly conduct this event from a practical and legal perspective."
Who should be in the room?
Not just a must - also a competitive advantage
Alongside the obligations, the reform also creates an opportunity.
“Companies that demonstrate organized preparation, documentation, and risk management are perceived as more stable and secure,” notes Simon.
“This affects insurance terms, premiums, and also the trust of partners and invitees.”
The bottom line
Construction safety reform is not a marginal regulatory change.
This is a profound change that requires management to rethink liability, insurance, and risk management .
The joint trainings of Itzik Simon and Attorney Eldan Danino are designed precisely for this point, to connect the law, insurance, and management, and to translate regulation into informed action.
The safety reform in construction works is not a marginal regulatory change. It is a fundamental shift that requires management teams to rethink responsibility, insurance, and risk management.
The joint training sessions led by Itzik Simon and Adv. Eldan Danino are designed precisely for this purpose: to connect law, insurance, and management, and to translate regulation into informed, practical action.
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