What Brokers and Agents Need to Know About Builders’ Risk Insurance
Paul Lucas: Hello everyone and welcome to a special edition of Insurance Business TV as we delve into the construction insurance market. Since the onset of COVID-19, the market has been facing various challenges from supply chain disruptions to labor shortages. But how does the market look now? And what are the current trends to be aware of? In this edition, we welcome Jeff Benson, Builders Risk and Contractors Equipment Program Manager at Victor Insurance Managers, to shed light on these issues. Jeff, welcome to Insurance Business TV.
Jeff Benson: Thank you for having me. I look forward to discussing the current topics that affect builders risk and contractors equipment.
Paul Lucas: Let’s dive into the industry trends that brokers and agents need to be aware of in the coming year and beyond, according to your perspective.
Jeff Benson: The major factors impacting the construction marketplace are the prolonged project completion times and increased costs due to inflation and supply chain disruptions. Additionally, catastrophic weather events are on the rise, affecting construction insurance. These events include tropical storms, convective winds, wildfires, flooding, and a shift in population to high-risk areas.
Paul Lucas: What about the current loss trends in the construction market?
Jeff Benson: We are seeing a frequency problem due to a shortage of skilled labor, leading to preventable claims on job sites. Basic loss control measures like maintaining job site security and addressing water damage issues can help reduce these frequency issues. In builders risk, there is also a severity problem when catastrophic events occur.
Paul Lucas: How is Victor Insurance adapting to these trends, both current and anticipated?
Jeff Benson: Communication with agents is key in understanding and mitigating risks. By staying in close contact with underwriters and emphasizing the importance of human interaction in a fast-paced world, Victor Insurance aims to provide timely and tailored solutions to brokers and agents.
Paul Lucas: Why should brokers and agents choose to work with Victor Insurance?
Jeff Benson: Victor Insurance ensures accessibility and responsiveness to agents’ inquiries, especially in time-sensitive situations like closing deals. In the builders risk market, where timing is crucial, having a dedicated team available for assistance sets Victor Insurance apart from others.
Paul Lucas: Any tips or key messages for brokers and agents navigating the construction insurance market landscape?
Jeff Benson: Agents should communicate clearly with contractors about policy timelines and potential extensions to avoid coverage gaps. Understanding the prolonged nature of construction projects and the impact of inflation is crucial for effective risk management.
Paul Lucas: Thank you for your insights, Jeff. For more updates on builders risk and contractors equipment, stay tuned to Insurance Business TV.