Historically, the construction industry has been the first to feel the effects of a “hardening” insurance market and the last to enjoy the benefits of a “soft” insurance market. What’s worse? For most contractors, insurance is their second largest expense behind payroll, and this expense is not only growing, but the control over it seems to be diminishing. In fact, the Property Casualty insurance market is currently experiencing its 23rd consecutive quarter of overall rate increase.
Unfortunately, the construction industry continues to experience above average rate increases. Contractors commonly complain about insurance premiums being frustrating, not rewarding safety records, and lacking control.