What does a hardening insurance market mean for construction, real estate?

Before approaching the marketplace, every company should create a detailed underwriting submission to present to the carriers. (Credit: Piyapong Wongkam/Shutterstock)

Construction and real estate companies face massive risks and have significant property & casualty (P&C) insurance needs. These risks are growing in severity and frequency, creating a challenging environment for securing adequate insurance coverage at a reasonable rate.

In high-risk areas, commercial property insurance rates have spiked as much as 50% or more for certain classes of business. At the same time, insurance carriers are restricting terms and conditions, reducing limits and increasing deductibles.