Insurers are expected to seek high single-digit increases in their general liability coverage this year, says a report from Lockton Cos. Inc. on the outlook for the construction and design market on Wednesday.
“Exposures in Florida, tough construction defect jurisdictions, residential (including multi-family) and street and road contractor risks are among the segments that have driven additional need for price,” the report said.
Among other things, compensation levels for workers are expected to remain somewhat stable this year, the report said.
The report said: “Increases in excess interest rates are less extreme, but still in the flat to +15% range. Rates continue to be affected by large losses from construction defects, wildfires, (environmental, social and governance) issues and concerns and labor laws that are pro -plaintiff.”;
Projects with difficult exposures, such as condominiums, frame apartments and hotels, still account for a disproportionate share of increases in primary and excess liability levels, illustrated by “very rare” access to more than $10 million of excess market capacity inventory, it said in the report.
It also said that broader coverage terms are becoming more readily available, depending on factors including the type of project, the contractor’s safety program, quality assurance and control, and loss experience.