The construction industry is heading into 2026 with strong demand, full project pipelines, and continued growth across both public and private sectors. Yet the landscape contractors are navigating is changing. Carriers are tightening their expectations. Loss severity is increasing. Workforce pressures are reshaping jobsite risk. And the legal environment continues to influence costs across multiple coverage lines.
For owners, CFOs, and risk leaders, understanding what is shifting beneath the surface is one of the most important steps in preparing for renewals and protecting margins. The following insights reflect the trends that will shape the risk environment for construction companies in 2026.
A Shift Toward Selective Underwriting
Capacity is available, but not for everyone. Underwriters are adopting a more selective posture toward construction risks, especially in trades with elevated loss frequency or severity. Height exposure, heavy equipment, complex scaffolding, and structural steel continue to draw more scrutiny. So do contractors with inconsistent safety documentation or gaps in claims narratives.
What carriers want to see in 2026:
• A clean, complete underwriting submission
• Evidence of safety training and jobsite oversight
• Demonstrated improvement after past claims
• Updated financials, valuations, and operations data
The more clarity contractors can provide, the more compelling their risk profile becomes.
Workforce Pressures Will Shape Safety Outcomes
The labor shortage remains one of the most significant drivers of operational and insurance risk. Many firms are onboarding new workers at a pace that outstrips training capacity. Less experience on jobsite tasks often correlates with higher injury rates, more equipment incidents, and inconsistent adherence to safety protocols.
Signals to watch in 2026:
• Industry demand for additional workers
• Increased turnover among skilled trades
• Rising reliance on temporary labor in peak seasons
• Training gaps that show up in loss trends
A renewed focus on onboarding, supervision, and ongoing safety education will be essential.
Subcontractor Risk Transfer Will Determine How Carriers View You
Contractor safety matters. Subcontractor safety matters even more. Many losses that impact general contractors originate from subcontractor actions or gaps in contracts.
For 2026, carriers are looking closely at:
• COI tracking processes
• Hold harmless and indemnification language
• Additional insured and waiver requirements
• How limits differ by trade
• How subcontractor selection decisions are documented
Updating subcontractor agreements early in the year and tightening COI procedures can directly influence pricing and available terms.
Auto Liability Remains a Difficult Line
Construction fleets continue to feel the combined impact of rising repair costs, more advanced vehicle technology, and legal trends that increase severity. Even firms with strong operations are experiencing pressure in this category.
Underwriters will expect to see:
• Enforced driver eligibility criteria
• MVR monitoring
• Telematics or fleet management tools
• Documented policies on distracted driving
• Clear accountability for supervisors and drivers
Firms that invest in fleet controls often see meaningful underwriting benefits.
Legal Trends Are Driving Higher Costs
Litigation funding, higher settlement expectations, and large verdicts continue to influence insurance costs, especially in general liability and auto. Documentation is becoming a critical part of how risks are assessed.
Carriers want confidence that contractors can demonstrate:
• Jobsite oversight
• Incident documentation
• Corrective actions after near misses
• Clear communication structures
• Strong post-incident reporting
This is increasingly becoming a differentiator between firms with similar operations but very different loss outcomes.
Material Costs and Project Delays Are Affecting Builder’s Risk Calculations
Supply chain volatility is less chaotic than it was in 2021 and 2022, but it still affects project valuations, timelines, and coverage adequacy. Underwriters are asking more questions about delay exposures, site security, and materials handling.
Contractors should reevaluate:
• Replacement cost values for equipment
• Builder’s risk limits based on current material costs
• Fire protection at temporary structures
• Security measures for tools, equipment, and stored materials
Gaps in valuations or schedules tend to surface during claims, not renewals, so proactive adjustment is essential.
Where Contractors Should Focus Their Energy in Early 2026
Rather than a checklist or numbered list, use this guidance as a strategic starting point:
• Make safety documentation and training easy to verify
• Refresh contracts, especially subcontractor agreements
• Strengthen fleet controls and document accountability
• Reassess valuations for equipment, property, and builder’s risk
• Align your submission with carrier expectations by preparing early
• Partner with a broker who knows how carriers evaluate construction risk
These steps help create a stronger position when renewals approach and can positively influence pricing and terms.
Looking Ahead to 2026
The construction industry is entering a year where preparation, documentation, and operational discipline will matter more than ever. Contractors who invest the time to sharpen their safety culture, refine subcontractor controls, update valuations, and strengthen their risk story will be in a much stronger position when navigating renewals or negotiating terms.
If you would like to assess your current program or discuss opportunities to strengthen your risk posture for 2026, connect with a Liberty advisor or request a construction-focused review.
Talk with a Liberty Construction Risk Advisor to learn more: https://libertycompany.com/contact/