Construction insurance premiums rose 4.6% in the first half of 2024, according to a midyear market report from the Council of Independent Insurance Agents & Brokers. The data was published by broker Woodruff & Sawyer in a report on insurance costs available on JDSupra’s legal website.
The intricacies of the various coverages, limits and exclusions are explained in detail. Carriers offering builders’ property, equipment and risk coverage are struggling to keep up with “increasing project sizes due to rising labor and material costs,” he says the report, which means shorter deadlines and tighter sublimits in some cases.
With the exception of workers’ compensation, where no or very low premium increases have been observed, all other forms of coverage became more expensive during the first half of the year. Auto liability insurance, up 8% to 18%, and excess liability insurance, up 5% to 12%, saw the biggest increases. .
The Council of Independent Insurance Agents & Brokers is an association based in Washington, DC that publishes a lot of data on insurance premiums, exclusions, limits and market conditions.
Some of the industry data is consistent with other survey data released by the board in May covering business insurance of all types through the first quarter of 2024.
Commercial car premiums rose an average of 9.8%, up from 7.3% in the previous quarter, the council reported at the time. Inflation in vehicle repair costs, rising nuclear rulings and truck driver shortages make accidents more likely as employers “lower applicant standards” for drivers, according to the council’s report.
Commercial real estate premiums also rose an average of 10.1% in the first quarter.
