The construction insurance sector remains entrenched in a hard market, but the pressures are not evenly distributed. General contractors (GCs) are beginning to see some stabilization, while trade contractors continue to face tightening conditions and reduced capacity.
According to Kevin Hahn, senior vice president at Jencap, GCs are starting to encounter more favorable underwriting conditions, while trade contractors are experiencing mounting obstacles.
“We’re seeing a divide emerge in how general contractors and trade contractors are being treated in the current market,” Hahn said. “It’s forcing agents to think differently and act more strategically.”
In regions such as New York, general contractors are beginning to benefit from shifts in carrier appetite. Risk profiles that include strong loss histories, detailed subcontractor controls, and robust safety protocols are attracting more interest.
“More excess capacity is available, and rates are stabilizing for the most desirable risks. The general contractor insurance market is looking up,” Hahn said.
Trade contractors, on the other hand, face a markedly different climate. The market for high-exposure trades – including roofers, exterior masons, concrete workers, and steel erection firms – remains tight.
Hahn said these trades often involve direct labor at height and fall under the scrutiny of New York Labor Law, factors that are pushing carriers to reassess their willingness to write such risks.
“These types of trades operate from heights, require a direct labor workforce, and are heavily exposed to the New York Labor Laws,” Hahn said.
Insurers are responding by reducing capacity, tightening underwriting standards, and introducing more exclusions. Accounts that were once seen as stable are now experiencing significant premium increases or, in some cases, difficulty obtaining quotes at all.
“Even accounts that were once considered solid are now seeing steep premium increases or struggling to find coverage at all,” he said.
Some brokers are turning to non-admitted carriers or layering programs across several markets to construct workable solutions.
The segmentation of risk within construction is becoming more defined. Insurers are no longer treating construction businesses as a uniform category but are increasingly differentiating by trade, location, project type, and operational scope.
“This segmentation means we can’t rely on what worked last year,” said Hahn. “Each client now needs a tailored approach. What’s available to one contractor might not apply at all to another, even within the same market.”
This shift is forcing brokers to reassess placement strategies. Matching a client’s risk profile with a carrier’s appetite now requires closer alignment on safety practices, job scopes, and geographic exposure.
To remain effective in this evolving environment, brokers need to adopt more nuanced tactics.
“Clients – especially trade contractors – need to understand the realities of the current market, from higher premiums to limited capacity and tighter terms,” Hahn said.
Applications must be thorough and well-documented. “Underwriters want clean, complete submissions with current safety records, subcontractor practices, and detailed scopes of work,” Hahn said.
In cases where traditional markets fall short, brokers are exploring alternatives such as excess and surplus (E&S) lines, layered placements, or working with wholesalers who have established relationships in niche trade sectors. The goal is to deliver viable options for accounts that may be deemed high-risk by standard carriers.
“Help them invest in the kind of risk management that matters to underwriters – like site-specific safety protocols, OSHA training, and return-to-work programs,” Hahn said.
For brokers managing construction accounts in this climate, having access to wholesale partners with market insight and strategic reach is becoming more critical. Jencap, for example, continues to work with retail agents to find solutions across both the general and trade contractor segments.
“Our relationships across the construction sector allow us to think outside the box when placing coverage, especially for trades,” Hahn said. He noted that flexibility and understanding of market conditions are key as the divide in the construction insurance market persists.
“The construction insurance market isn’t softening across the board—it’s splitting,” he said. “Agents who understand this divide and adjust their strategies accordingly will be the ones who succeed in guiding their clients through it.”
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