The recently published Construction Insurance Benchmark Report by Assurex Global provides valuable insights into the insurance purchasing decisions of 1,983 construction companies across five specialties. This data helps validate industry experiences and offers contractors a clearer understanding of how insurance policies and limits vary by specialty.
INSURANCE TRENDS BY CONSTRUCTION SPECIALTY
The report categorizes construction companies into five specialties based on NAICS codes:
- General construction (NAICS 2361XX and 2362XX)
- HVAC, electrical, and plumbing (NAICS 2382XX)
- Highway/underground (NAICS 2371XX and 2373XX)
- Trade contractors (NAICS 2381XX and 2383XX)
- Other specialties (NAICS 2389XX)
Key Findings:
- Highway/underground contractors purchase higher limits of contractor’s equipment and excess liability coverage due to their exposure to severe liability losses.
- General contractors purchase more builder’s risk coverage and slightly lower excess liability limits than highway/underground contractors.
- HVAC contractors are more likely to purchase cyber liability insurance due to their connection to building management systems. They also lead in purchasing directors and officers liability coverage, likely due to perceived personal asset exposure.
- Environmental impairment liability is more common among highway/underground contractors, reflecting their higher risk of pollution events.
INSURANCE LIMITS AND REVENUE
The report also highlights that insurance limits tend to increase as a contractor’s annual revenue grows, regardless of specialty. This trend underscores the importance of tailoring insurance coverage to both the size and nature of a contractor’s operations.
HOW KAPNICK CAN HELP
At Kapnick Insurance, we offer tailored solutions, resources, and expert guidance to help contractors navigate their unique insurance needs. We can provide a personal risk assessment and help you leverage insights from the Construction Insurance Benchmark Report.
Contact us at to discuss your needs or to request a copy of the full report.
