Construction Insurance Rates Predicted To IncreaseOn September 17, 2012 By Wolfe Guest
According to a recent Press Release from Marsh, a leader in insurance broking and risk management, construction firms across the U.S. will be facing new challenges in the upcoming year. Insurance rates have been declining for close to a decade, but rates are forecasted to increase between 8 and 10 percent. Firms with poor loss histories will receive higher rates, and some may not even be able to renew their policies.
This rise in rates is apparently the result of “soft market conditions” in recent years. Michael Anderson, Leader of Marsh’s U.S. Construction Practice, stated, “This comes against the backdrop of medical cost inflation and changes to some state statutes that have extended coverage beyond the insurers’ originally intended scope.” Mr. Anderson also goes on to explain that even with the increase in rates, the industry’s capital is still strong resulting in market conditions remaining competitive.
Contractors need to be sure to stay current on all insurance so that the contractor will limit its exposure when occurrences happen. Being insured is a major expense in all construction companies. That expense will be justified when a claim is made. Insurers seek to exclude or deny coverage, therefore a good attorney will be needed to fight back. Here at Wolfe Law Group, LLC we handle situations where we work with insurers to aid our clients and other situations where we fight insurers to get them to pay our clients what they are owed under the policy.