In the construction industry in Halifax, the risks are layered, particularly with the high use of frame construction. In an environment marked by evolving challenges in securing insurance capacity, Colin Brien (pictured), regional director of commercial insurance at Acera Insurance, emphasizes the strain this can place on coverage options.
“We place a lot of construction coverage,” Brien said, pointing out the ongoing demand for builder’s risk insurance in a city where cranes and large-scale projects are constant fixtures.
While Halifax’s construction scene includes some non-combustible projects, frame construction still dominates, especially in multi-unit and commercial buildings, creating a challenging insurance landscape. Capacity, which refers to the availability of insurance coverage, took a significant hit in recent years.
“Capacity was a huge issue,” Brien said, attributing much of the reduction to the impact of COVID-19 on insurance markets. The pandemic brought a “competitive space” to a halt, shifting it to a firm market, where multiple underwriters often had to collaborate on a single policy. This shift led to a surge in subscription policies, where as many as “five or six” insurers could be involved, which complicates claim settlements for clients, he said.
The impact of climate change adds another layer of urgency. With unpredictable weather patterns, the risk landscape for construction insurance grows more complex each year.
“Halifax had a large fire event in 2023,” Brien said, referencing recent wildfires that, while primarily impacting residential areas, underscore the threat environmental shifts pose. He added that the region’s dry spring intensified risks, while the threat of hurricanes remains a perennial worry every fall. Brien’s team emphasizes the importance of maintaining comprehensive coverage, ensuring that Halifax builders are not underinsured, particularly when facing significant natural disasters.
“We put a big push on insuring to value and making sure there’s no co-insurance penalties,” he said, explaining that protecting clients from penalties is a priority.
Brien’s work also highlights the shift in residential construction trends in Halifax, as demand for multi-story apartment buildings has surged. This growth in residential development frequently involves brokers who expand into new builds rather than acquiring existing properties. Brien said that these general agents tend to be “acting as a GC…now they’re looking to build and add that way, as opposed to just purchase existing buildings,” capturing the ambition fuelling Halifax’s residential growth.
Amid the rising risks of natural disasters, Acera Insurance has intensified its focus on resilience, recognizing the critical role insurance plays in mitigating unpredictable losses.
“Flood, quakes and water damage,” are all essential coverages included, Brien said, avoiding “named perils” policies that would limit clients to a narrow scope of protections. To navigate the challenges of inflation, Acera actively educates clients on tools and resources, often working with third-party appraisers to assess accurate values.
“The typical 5% a year…[inflation] is not really keeping up with the true cost,” Brien said, noting that his team’s efforts have become an essential aspect of ensuring adequate client protection.
Ultimately, in an era where construction projects are becoming more complex, with each floor potentially presenting unique requirements, Brien stressed that transparency with underwriters is vital.
