Lack of materials, unreliable deliveries and lack of qualified labor can all contribute to delays for construction projects and require extensions of insurance.
Projects that are progressing but are subject to delays often need project extensions of their coverage, according to Bryan Stevenson, head of building damage insurance at Axa XL, a division of Axa SA, in Dallas.
"Projects are progressing, but we see many project extensions – more than we've ever seen before, "which increases insurance costs, Stevenson said.
Such expansions can be" challenging "because construction costs and therefore insured values may have increased, says Jim Gloriod, St. Louis-based CEO of Aon Construction Services Group US, a division of Aon PLC.
In addition, as real estate / accident markets harden, insurance terms may have changed since the start of the original policy.
"Many of these projects were placed before the market changed. , so now insurers are looking at these rates. changed with the new exposures, and that poses challenges for the industry, "said Gloriod.