BRANCHVILLE, N.J., May 9, 2023
/PRNewswire/ -- Selective Insurance, a leading business insurance
carrier with specialized expertise in the construction industry,
today released a report on general contractors, risk, and
insurance. Selective's General Contractors Risk Report presents
data and observations for the various risks general contractors
often experience, along with construction industry forecasts and
business and safety management implications.
"Construction is an inherently high-risk industry given its
exposure to and reliance on macroeconomic factors, such as
commodity pricing, supply chain, labor dynamics, and housing
demand. For general contractors, their ability to identify,
anticipate, and manage a range of workplace risks can determine the
success of their projects and, more importantly, their business
resiliency," said Jim Albi,
Assistant Vice President, Contractors, Selective Insurance.
Selective's General Contractors Risk Report provides a
comprehensive analysis of the residential and non-residential
construction industry, including trends, insights on workers'
compensation, auto and completed operations claims, and predictions
on key business drivers such as supply chain, technology, and
labor. The data is based on internal claims and underwriting
information, supplemented by external data and unique qualitative
insights from Selective's unique operating model that includes
regionally-based claims, underwriting, and risk management
employees.
Economic Risks for General Contractors
The General Contractors Risk Report highlights the three
significant operational risks faced by general contractors:
- Inflation: Higher material and commodity prices
increased the need for protection against property damage during
construction.
- Labor: The labor shortage created a need to hire more
inexperienced workers, resulting in increased incidents of injury
and workers' compensation claims.
- Subcontractor Risk: Responsibility for
subcontractors' errors has long been a general contractor risk, but
it is heightened with high prices, labor scarcity, and material
shortages.
General Contracting Construction Outlook
Informed by Selective's expertise and regional insights, the
General Contractors Risk Report includes a forecast for what's to
come in construction for the remainder of 2023, including the
following trends:
- The push to attract more women and minorities to the
construction industry will continue.
- There will be increased demand for multi-use properties that
combine corporate and entertainment centers with residential
opportunities.
- General contractors will increase their use of technology in
every aspect of their operations.
- The current shortage of drivers with commercial licenses will
persist.
- Commodity price volatility will continue.
- General contractors will seek to grow their businesses into
related fields, such as design-build and offering more one-stop,
turnkey services.
- Single-trade contractors will expand their businesses into
multiple trades or general contracting.
Selective and its independent insurance agency partners provide
unique risk management solutions, safety management expertise,
customer-centric claims service, and superior customer service to
more than 80 types of businesses. Contractors represent a
significant portion of Selective's 2022 commercial lines customers.
The General Contractors Risk Report is one of Selective's many
resources available to help general contractors understand and
address risks facing their business.
About Selective Insurance
Selective Insurance Group,
Inc. (Nasdaq: SIGI) is a holding company for 10 property and
casualty insurance companies rated "A+" (Superior) by AM Best.
Through independent agents, the insurance companies offer standard
and specialty insurance for commercial and personal risks and flood
insurance through the National Flood Insurance Program's Write Your
Own Program. Selective's unique position as both a leading
insurance group and an employer of choice is recognized in a wide
variety of awards and honors, including listing in Forbes Best
Midsize Employers in 2023 and certification as a Great Place to
Work® in 2023 for the fourth consecutive year. For
more information about Selective, visit www.Selective.com.
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SOURCE Selective Insurance Group, Inc.