Insurance claims analysis

Our analysis of construction and engineering insurance industry claims around the world shows that natural hazards are the second most expensive cause of loss, accounting for 20% of the value of claims in five years—second only to fire and explosion.

With climate change increasing the frequency and severity of extreme weather events such as hurricanes, floods, and wildfires, the costs of property damage and business interruption from these events are expected to escalate.

It is now much more expensive to repair or rebuild damaged property, and therefore it is important that businesses work with insurers to ensure they have accurate and up-to-date valuations of their assets to ensure they are fully reimbursed in the event of any loss.

Construction has reached a critical juncture. Between new technologies, innovative delivery methods and the explosion of greener practices, the industry is poised to benefit from more sustainable practices. However, industry challenges continue to evolve.

It is essential for companies to partner with an insurance broker and carrier who specializes in construction insurance to obtain accurate quotes based on the specific details of the construction company.

They can help assess the coverage needed, evaluate risk factors, and provide a range of insurance options, enabling the business to choose the most appropriate coverage for its needs. Additionally, maintaining a strong focus on safety practices and risk management can positively influence insurance costs by demonstrating a commitment to reducing potential exposures.

Darren Tasker is Regional Head of Construction, Americas at Allianz Commercial. Based in Toronto, Darren joined Allianz in 2010 and was previously Regional Head of Energy & Construction, North America.

This article is published with permission from the author and may not be reproduced.

See also:

Special Reports /

The construction industry’s evolving risk environment

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