Navigating the 2025 Construction Insurance Market

The construction insurance landscape in 2025 is marked by evolving trends and rate adjustments across various coverage lines. General liability rates are anticipated to increase by 5% to 15%, while auto liability and physical damage may see hikes between 10% and 15%. Workers’ compensation rates remain relatively stable, with potential increases up to 5%.

Builders risk insurance is experiencing stabilization, with non-high hazard projects facing rate increases of 5% to 10%, and high-hazard projects seeing rises between 10% and 20%. Professional liability coverage maintains a flat trend, with possible increases up to 5%.

Several factors contribute to these shifts, including social inflation, nuclear verdicts, and plaintiff-friendly juries. Additionally, tariff increases on building materials like steel and lumber are exerting upward pressure on construction values, potentially impacting insurance pricing at project inception or during annual policy audits.

Contractors are advised to closely monitor these developments and consult with their insurance providers to ensure adequate coverage and compliance with evolving market conditions