Builders Risk

With foot traffic down and remodeling needed to accommodate social distancing, commercial renovations are on the rise.

Independent agents should be thinking about how to provide more value to win a dwindling number of business clients—many of whom will be paying more and more for coverage.

In a challenging builders risk marketplace, “water damage is becoming a silent killer for a lot of carriers,” says independent agent Bret Lawrence. “We’re seeing water damage minimum deductibles increasing and many carriers sub-limiting the coverage.”

As investors flee the markets and businesses freeze operations during the coronavirus pandemic, the landscape for agents is shifting.

Here are a few simple reminders that will help insurance professionals avoid many of the errors & omissions pitfalls associated with the procurement of builders risk policies.

The surety industry is one of the most complex markets in insurance—which makes it a great avenue for independent agents to prove their value. But in a persistent soft market, adding value beyond price is easier said than done.

Due to the amount of detail and sensitive information involved in the surety bond process, it’s important to choose a reliable wholesaler to support you and your client.

Independent agent Richard Miller predicts that the surety bonds market will remain strong in the long term. “The future of surety is endless,” he says. “As long as there are jobs to be done, financial guarantees are required, and bonds are uniquely suited

The ongoing labor shortage in the construction market continues to put pressure on project scheduling and costs for contractors. But for contractors who are struggling to manage scarce resources, the surety market offers relief.

As competition heats up in the builders risk insurance market, keep an eye on broader coverage forms, the Internet of Things and predictive analytics.