| Trend | Range | |
|---|---|---|
| General liability |  |
Flat to +8% |
| Auto liability and physical damage |  |
+7% to +20% |
| Workers compensation |  |
–2% to +4% |
| Umbrella (lead) | |
+6% to +15% |
| Excess | |
+7% to +20% |
| Non-high hazard Nat-Cat project specific builders risk | |
0% to +5% |
| High hazard Nat-Cat project specific builders risk | |
+5% to +15% |
| Master builders risk/contractors block | |
–5% to +5% |
| Professional Liability | |
Flat to +5% |
| Project specific/controlled insurance programs for excess | |
Flat to +10% / +5% to +30% |
Key takeaway
As we shift our focus to U.S. rates and future predictions, it’s important to highlight that pricing for individual accounts or projects can vary considerably due to various underwriting factors, including the geographic location of the risk where the judicial environment may significantly influence loss and claims costs, and subsequently, pricing levels. Moreover, the risk profile, which includes historical losses that are often analyzed conservatively, tends to add an extra layer of caution to an underwriter's risk assessment.
It’s worth noting that the operational characteristics of each specific risk play a crucial role in determining pricing. For example, street and road construction typically poses a much higher insurable risk compared to general contracting. Consequently, we anticipate that pressure on rates related to higher hazard exposures will persist.
The recent tariff increases applicable to building materials including steel, lumber, aluminum, are adding significant pricing pressure on construction values. As “contract value” is a very common rating basis for insurance policies, contractors and project owners may see insurance pricing increases at project inception or at the annual policy audit. Contractors and project owners should be careful about tracking specific price increases due to tariffs. This will give them the information they need to negotiate prices with their respective carriers. Specifically as pertains to Builders Risk, contractors and project owners should review “escalation clauses” within their respective policies to assure coverage limits are adequate and address limit changes accordingly.
