An economic turnaround is finally evident after an extensive recession. As a result, the construction industry is on track to make an estimated $612 billion in 2015, paralleling the Commercial Construction Professional Liability market.
The Dodge Construction Outlook of 2015 stated that construction profits will increase 9 percent this year from 2014’s $564 billion. However, as advancements are made, business models need to be reworked and professional liability coverage needs to be in place to secure any gaps.
As such, the contractors professional liability market (CPrL) is expanding, as well. Currently, there are 16 carriers domestically and 5 foreign carriers who offer the product. As the coverage protects construction firms, designers, builders, and even subcontractors and managers, it is an essential tool to implement within the industry. In addition, this policy includes protection against damages in excess of standard coverage.
Trends for 2015 include carriers updating and revising existing plans and offering supplemental insurance for crisis management. What’s more, it is a carrier goal to modernize the policies from focusing on the components of the job and more on the contractors who are completing the project. After all, it has been decided that insuring the whole project is more beneficial than protecting one aspect of it.
Although experts recommend insuring every type of firm, smaller construction firms’ main incentive for acquiring this coverage is fulfilling contractual obligations, while larger firms seek to protect assets.
Although these policy rates are expected to increase in price by one percent, the rectified damage coverage is much more expansive and reflects an expanding market. As a result, attention should be given to the quality of claims personnel within the carrier offering the coverage, as stated by Construction Executive.
In addition to bringing you the latest news from the insurance industry, PL Risk provides Resources for Agents and Brokers nationwide. We’ve recently implemented Hiscox Now, which allows agents their own access to Hiscox and instant quoting. For more information, contact us today at (855) 403-5982.
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