Assurex Global Publishes 2023 Construction Benchmark Report

COLUMBUS, OHIO – The 2023 Construction Benchmark Report is published and now available from Assurex Global.

 With the report, construction company decision-makers can find insights, statistics, and other valuable information gleaned from the purchasing decisions of 1,624 peer companies, all of which can help build a good framework for their own insurance purchasing decisions. 

“The Assurex Global Construction Benchmark Report provides us with a comprehensive, value-added tool to use in conversations with our construction clients and prospective clients to help them make informed purchasing decisions,” said Christopher Vincent, Construction Practice Leader at The Mahoney Group. “These companies can benefit greatly from the detailed information in this report, including the ability to compare risk management and insurance decisions with the decisions of their peers.”

According to the Associated General Contractors of America (AGC), American construction companies generate $1.3 trillion of economic activity annually, producing almost 8 million jobs. From an economic standpoint, the future is murky. 2021 saw an increase of 7 percent in overall construction spending. Residential construction spending has decreased thus far in 2022. Infrastructure spending has increased, particularly due to the federal government passing the $1.2 trillion Infrastructure Investment and Jobs Act, which will provide an additional $550 billion in funding for construction over the next five years. 

The 2023 Construction Benchmark Report is the third annual survey of the purchasing habits of contractors that are insured through Assurex Global Partner Firms. This report focuses on North America and 1,624 construction companies of varying sizes and specialties, generating revenues from less than $1 million to more than $1 billion.

While much of the data conformed to our expectations, some elements surprised us, including:

• There was significant variability in contractor size between specialty areas.
• Excess liability limits increased significantly compared to last year. 
• Excess liability rates and premiums increased moderately to dramatically, depending on the class of contractor.
• Contractor’s equipment limits were lower than we expected.  While the highway/underground category had the greatest values, even those values seemed relatively modest.
• The percentage of firms purchasing contractor’s professional liability increased compared to our last survey. 
• The percentage of firms purchasing environmental impairment liability coverage was higher than in our last survey.

Assurex Global conducts numerous reports throughout the year to assist partners and clients. This is the third annual benchmark report published for the Construction industry. Benchmark reports are also available for the Education, Health Care, Manufacturing, Non-Profit, Real Estate, and Technology/Life Sciences industries.