The construction sector might be booming, with some projecting it to be among the fastest-growing industries in the US over the coming years, but that doesn’t mean it’s free of risks. For one, a shortage of skilled labor due to a workforce that’s retiring and leaving behind newer employees opens up construction projects to potential issues.
“When you mix an aging workforce with an influx of less experienced employees, you have construction defect issues, you have workplace issues associated with action over the type of injuries that can impact the primary carrier and the excess carrier,” said Jeff Kilmartin, senior vice president of excess casualty for Venture Underwriters, whose risk appetite includes contractors, as well as manufacturers and owners, tenants and landlords. “You also have a lot of fluctuation in some of your general contractors, meaning that if you look at their historical exposures, you don’t see discernible trends. You’ll see where five years ago, they had $5 million in receipts, and two years ago they were $11 million, and this year they’re $3 million, so we have to ask what is happening? What is driving that and is it that you are losing business, gaining business, or changing operations, and is there an evolution in what you’re doing?”
You've reached your limit - Register for free now for unlimited access
To read the full story, and get unlimited access to Insurance Business website content, just register for free now. GET STARTED HERE
Already a website member? Log in below.