Selective’s 2023 General Contractors Risk Report
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Even in a volatile industry, general contractors can protect and grow their business by staying ahead of emerging risks like record inflation and persistent labor shortages.
Managing Risks is Key
The three main categories of risk that a general contractor can control are jobsite safety, risk transfer through airtight subcontractor agreements, and carrying proper insurance coverage.
Jim Albi,
Assistant Vice President,
Contractors Strategic Business Unit
Completed Operations Claims
From 2020 to 2022, we received 3x more Completed Operations claims from residential general contractors (74.6%) than non-residential general contractors (25.4%).
74.6%
Representing almost half of Selective’s 2022 Commercial Lines customers, thousands of general, heavy, and trade contractors trust us to protect their businesses.
UNDERSTANDING AND MITIGATING THE DIVERSE RISKS OUR GENERAL CONTRACTORS FACE
Our internal claims and underwriting information, supplemented by external data, gives us extensive knowledge of construction industry risks, trends, and anticipated impacts.
Together with independent agency partners, we use this information to develop coverage and Safety Management strategies to help protect and reduce the risks of our contractor customers who contribute significantly to our nation's economic health.
When construction markets slow, general contractors try to minimize their operational risk by seeking new growth opportunities, such as vertical or horizontal expansion, taking on new categories of skilled workers, or forming alliances with subcontractors.
INDUSTRY OUTLOOK
General contractors will try to work around uncertainties in construction timelines by using alternative and/or recycled building materials.
As general contractors turn more to building condominiums and mass developments, their construction defect risks will grow. Non-residential contractors must expand their skill sets to take advantage of the boom in specialty structures.
Contractors will increase their use of technology in every aspect of their operations, from the job site to the back office.
Source: Selective Insurance General Contractors Risk Report
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Workers Compensation Claims
In 2022, workers under 34 accounted for a larger share of Workers Compensation claims from residential general contractors (over 32%) than those in other age groups.
32%+
31%+
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29%+
28%+
27%+
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25%+
24%+
23%+
22%+
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09%+
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07%+
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04%+
03%+
02%+
01%+
00%+
GENERAL CONTRACTING
SUPPLY CHAIN RISKS
TECHNOLOGY
CONSTRUCTION TRENDS
DOWNLOAD FULL REPORT
DOWNLOAD FULL REPORT
Workers Compensation Claims
In 2022, workers under 34 accounted for a larger share of Workers Compensation claims from residential general contractors (over 32%) than those in other age groups.
32%+
31%+
30%+
29%+
28%+
27%+
26%+
25%+
24%+
23%+
22%+
21%+
20%+
19%+
18%+
17%+
16%+
15%+
14%+
13%+
12%+
11%+
10%+
09%+
08%+
07%+
06%+
05%+
04%+
03%+
02%+
01%+
00%+
DOWNLOAD FULL REPORT
DOWNLOAD FULL REPORT