Click on the image above to explore a building site that has resumed activity after being on extended hold. The potential construction risks within this scenario – a common one during economic recovery – could affect business for brokers and their policyholders.
Insurers are seeing more requests for coverage extensions
Economic slowdowns, such as the one that the world experienced during 2020 due to the COVID-19 pandemic, can have far-reaching and long-lasting effects on every industry.
In construction, decreased U.S. lumber mill operations created a supply shortage, and that, coupled with rising demand, has led to a 25% to 30% price jump on available materials. And now that on-hold projects are getting back on track, contractors are in high demand to make up for nearly a year of lost time.
Kevin Libeg, Vice President, Middle Market business leader at Argo Construction, told Insurance Journal that these circumstances have led to significant project delays and increasing requests for coverage extensions.
“Brokers can help protect their construction clients by getting ahead of their projections for the year, including extensions, for their year-end audit premiums,” says Alex Andrews, East Region Team Lead for the Middle Market segment of Argo Construction.
Watch a replay of Andrews and Garcia’s LinkedIn Live discussion, “Construction in Focus: Lumber and Labor Risks.”
With an appetite for projects or operations with up to $25 million in sales, Argo Construction’s Middle Market segment writes coverage for a wide scope of the industry. Learn more.