U.S. construction firms on average paid more for their insurancein the first half of 2013 as underwriters continue to seek priceincreases across the breadth of their contractor portfolios,according to a report published by Marsh.

Pricing for contractors general liability, project-specificgeneral liability, umbrella and excess liability, workers'compensation and residential construction insurance was up between3% and 7% on average during the first half of the year, accordingto Marsh's Construction Market Update—First Half 2013.

Construction firms with poor loss histories were more likely ingeneral to have seen double-digit rate increases.

Pricing for non-residential construction and professionalliability insurance for contractors, architects and engineers alsowas up on average during the first half of the year, but to alesser degree.

“U.S. construction firms are grappling with a firming insurancemarket, especially when it comes to liability insurance whereunderwriters continue to tighten coverage terms and seek rateincreases to make up for reduced investment income,” says MichaelAnderson, leader of Marsh's U.S. Construction Practice.“With a zerointerest rate environment, there is no cushion against a poorunderwriting decision.”

According to Marsh, not all construction lines are experiencingrate increases. Premium rates for builders risk insurance generallyremained flat during the first half of the year despite more demandfor coverage. Similarly, contractors pollution liability ratesremained generally flat to down 5%.