Managing Construction Insurance Costs in 2025

The construction insurance market is seeing shifts that will impact contractors in the year ahead. Some lines of coverage remain stable, while others are facing increased scrutiny from carriers. Rising claim costs, more restrictive underwriting, and changes in capacity are making it more important than ever for contractors to take a strategic approach to their insurance programs.

At AssuredPartners, we specialize in helping construction firms manage these challenges, ensuring they have the right coverage, risk management strategies, and long-term solutions in place. Here’s what we’re seeing in the market and how we can help.

What’s Happening in the Construction Insurance Market?

• Workers’ Compensation remains steady, but carriers are keeping a close eye on claims trends. An increase in claim frequency could lead to rate adjustments.
• General Liability and Auto Liability are seeing higher premiums due to rising claim costs, larger settlements, and legal trends. Carriers are also adding exclusions and tightening terms.
• Umbrella/Excess Liability is becoming more expensive as insurers limit the capacity they’re willing to offer.
• Property Insurance costs are increasing, especially for contractors working in areas prone to natural disasters. Higher deductibles and additional risk control measures are becoming more common.
• Alternative Risk Options such as captives and high-deductible programs are gaining traction as contractors look for ways to take control of their insurance costs.

How AssuredPartners Construction Can Help

The right insurance partner doesn’t just place coverage. We help contractors take a proactive approach to managing risk, controlling costs, and strengthening their insurance programs. Here’s how we support our clients:

• Renewal Strategy & Market Guidance: Understanding market trends helps you plan ahead. We work with you to assess your current program, identify potential challenges, and develop a strategy to secure the best possible terms.
• Risk Management & Claims Support: A strong risk management program can reduce claims and improve your standing with insurers. We help contractors strengthen safety programs, manage claims effectively, and position themselves as a better risk.
• Contract Review & Compliance: Making sure your insurance aligns with contract requirements helps avoid surprises. We review contracts to ensure your coverage meets obligations and protect you from unnecessary exposure.
• Alternative Risk Solutions: If you’re interested in captives or other risk-sharing options, we’ll help determine if these strategies make sense for your business and guide you through the process.

Market conditions may be shifting, but with the right approach, you can stay ahead of challenges and make informed decisions that protect your business. Whether you’re preparing for renewal, looking to improve risk management, or exploring alternative options, we’re here to help.