Years of premium discounting, coupled with deteriorating results, saw the General Liability market begin to harden during 2019. Insurers are looking to turn those results around with many in the Lloyd’s market significantly reducing their capital exposure in this area. We can expect to see this continue, even strengthen in 2020.

One of the sectors coming under particular scrutiny is that of Construction Liability. This is one of the worst performing areas in the General Liability space for a multitude of reasons. Claims can be quite involved, complicated by contractual issues and will often involve multiple parties adding to the associated cost of the claim. Exposure to contractor injury/workers’ compensation recoveries is also a significant contributor and insurers have traditionally underestimated the terms necessary to fund these losses.

The result of this has seen some clients receiving premium and deductible increases of a level that have had a major impact to their financial position. In the worst cases, clients are have to except significant reductions in coverage to secure their insurance.

At Pen, our underwriting team has a long history in the construction market. Even with rates on the rise, obtaining a coverage solution that best protects your clients’ bottom line is of paramount importance. We can work with you in structuring a program to best suit your clients’ needs as well as providing assistance in identifying and managing their key areas of risk. Working in partnership to enhance the insured’s risk profile, helps put them in the best position as an insurance buyer and provides some protection against insurance market fluctuations.

To discover if Pen might be the right solution for your next Construction Liability account, contact one of our team members for more information.

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