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Insurance Marketplace Realities 2027 – Construction

October 1, 2026
Rate predictions: Construction
Coverage Trend Range
General liability Flat icon Flat to +10%
Auto liability Flat icon +5% to +15%
Workers' compensation Flat icon Flat to +5%
Umbrella and excess liability Flat icon +5% to +15%
Non-high hazard Nat Cat project specific builders risk Neutral increase -2.5% to +2.5%
Master builders risk/ contractors block Flat icon -5% to +5%
Contractor’s professional liability (Annual) Neutral Decrease Flat to +5%
Contractor’s professional liability (project-specific) Flat icon Flat to +10%
Owners protective professional (project-specific) Flat icon Flat to +10%
Project-specific/
OCIPs/CCIPs
Neutral increase Flat to +5% for Dual line (WC, GL) moderate reductions for Primary GL Only 5% to 15% increases on Lead Umbrella and Excess Liability
Subcontractor default insurance Flat icon Flat to +5%

Key takeaways

Construction insurance stays competitive for strong contractors but varies by line: Workers' Compensation remains profitable, while Auto Liability and Umbrella/Excess face severity, inflation, and nuclear verdicts. Carriers reward strong risk management.
  • Megaprojects, especially data centers, are consuming labor, materials and management resources, elevating execution risk.
  • Project values regularly surpass the $1 billion mark.
  • Despite massive valuations, these mega-deals remain highly attractive to insurers due to their predictable, straightforward risk profiles.
  • Carrier appetite and capacity are expanding, yet SDI demand continues to outpace historical market growth.

The construction insurance market remains competitive for well-performing contractors, but conditions vary significantly by line. Workers' Compensation continues to benefit from strong profitability and competition, while Automobile Liability and Umbrella/Excess remain challenged by claim severity, medical inflation, litigation trends, and nuclear verdicts. Carriers generally place favorable underwriting consideration on strong risk management, favorable loss experience, effective fleet controls, strong subcontractor management practices, and operational discipline. Accounts with strong controls and clean loss histories are attracting broad market interest, while more challenging risks continue to experience constrained capacity and increased underwriting scrutiny.

Disclaimer

WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Contacts

Jon Oppenheim, Regional Construction Leader, North America

Jonathan Oppenheim

Regional Construction Leader, North America

Jim Dunlap, Construction Broking Leader, North America

Jim Dunlap

Construction Broking Leader, North America

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Insurance Marketplace Realities 2027

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