Tackling Rising Construction Insurance Claim Costs in the Wake of Labor Shortages

Travelers red umbrella logo
By Travelers
62 minutes

Chapter #1  |  Chapter #2  |  Chapter #3  |  Full Webinar Video

The construction labor market remains a top concern for contractors. The effort to attract and retain skilled labor is more competitive than ever and comes at a time of material cost inflation, higher interest rates and a worsening tort environment. These factors, plus rising claim costs, are putting increasing pressure on the construction industry.

Chapter #1

Trends in Construction Claims: Steeper Costs Are Affecting Most Lines of Business

Claims are getting more expensive across major lines of business, with auto and general liability losses hitting the umbrella layers of insurance.

Thad Doyle, AVP, Construction Claims at Travelers, puts it into perspective with a look at Travelers-specific claim trends  

Chapter #2

Fresh Perspective: Attracting a Younger Generation to the Construction Industry

With college costs rising significantly, Generation Z is open to less traditional, less expensive and more direct-to-career pathways in high-demand industries such as construction.

Colby Whitfield, AVP, Risk Control Construction, Energy & Marine at Travelers, discusses the benefits a younger generation brings to the construction industry, including their savvy use of digital technology.

Chapter #3

The Economic Conditions Look Bright for Construction

Job formation, consumer spending, government funding for construction projects and more are presenting favorable promise for the U.S. economy and the construction industry.

Ken Simonson, Chief Economist at the Associated General Contractors of America, explains why he is optimistic about the construction industry’s future.

Watch the Full Replay: A Contractor’s Conundrum: Tackling Rising Claim Costs in the Wake of Labor Shortages  

The continued influx of new employees – either early in career or new to the construction industry – creates unique risks and challenges across auto, workers compensation and general liability insurance.

We’ve assembled a panel of experts to discuss the rising cost of claims in the wake of labor shortages and provide recommendations on how to best prevent or mitigate losses.

Thad Doyle, AVP, Construction Claims at Travelers, facilitates the conversation and shares Travelers claim data with real-life examples of the factors that may be contributing to an overall rise in the frequency and severity of construction insurance claims.

Ken Simonson, Chief Economist at the Associated General Contractors of America, grounds the discussion with some of the causes of the current situation and then delves into what contractors can expect in terms of demand for construction in the coming years.

Colby Whitfield, AVP, Risk Control Construction, Energy & Marine at Travelers, offers critical strategies to manage the risks associated with skilled labor shortages.

  Navigate to these timestamps in the full webinar below:

  • Construction labor landscape over the past several years (2:56)
  • More job openings than workers in construction (5:16)
  • Trends in construction materials and labor costs (7:24)
  • Supply chain issues continuing in some areas (9:21)
  • Expectations for construction spending and the economy (10:07)
  • Claims across major lines of business: auto, general liability, workers comp and umbrella (17:03)
  • Social factors driving up claim costs (20:43)
  • Anti-corporate views in society and the tort environment (24:18)
    • Most common claim scenarios (25:05)
    • Attracting and retaining skilled workers (28:44)
    • Diverse worker populations, including Generation Z (30:31)
    • Developing and onboarding workers is crucial to new worker success (34:44)
    • Safety management: Planning, training and accountability are essential (38:08)
    • Fleet controls to maximize safety (42:59)
    • New opportunity risks (44:55)
    • Bridging the labor gap with innovation (47:43)
    • Economic conditions expected to hold steady and improve (49:12)

    A construction manager with her crew surveying a job site.

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