Just as the tide ebbs and flows, so does demand for the various lines of business within the insurance industry. At a time when commercial rates are experiencing a decrease, it appears that Inland Marine coverage just may be one of those lines keeping its head above water.
In the most basic terms, Inland Marine is broken down into two sections; property under construction (including contractor’s equipment), and property/cargo in transit. In a recent article on the Inland Marine business, PropertyCasualty360 offers an excellent overview of today’s marketplace. “Ample capacity, competitive pricing and increased buying activity characterize the Inland Marine market.”
The article cites one bright spot for “price-pressured” insurers: “While more carriers are chasing business, there’s more business to chase.” PropertyCasualty360 quotes Bob Opitz, North American Inland Marine manager at Chubb: “We continue to see increased construction activity and spending…” And, as the reporting points out, the continued spending on construction is affecting the transportation side as well. “Goods have to get to the job site,” says Opitz, as noted in the article.
With the new administration’s promise of increased infrastructure spending, carriers could see a large demand for Inland Marine coverage. Important to note, the word “infrastructure” pertains not only to bridges and tunnels, but also schools and hospitals. These buildings will have to be built by a contractor, and that contractor will require some sort of Inland Marine policy. In addition to builders’ risk, contractors’ equipment and installation floaters are proving to be competitive divisions of Inland Marine in the marketplace today. Abundant exposures and potential hazards on a construction site call for a thorough assessment in order to evaluate conditions and prevent financial loss. The resulting report, citing situations, information on pre-planning for safety, and management attitudes to loss control, provide underwriters with a better understanding of who they are insuring.
Alexander & Schmidt completes thousands of construction site risk assessments and Builder’s Risk surveys every year. We complete these via an on-site job visit, or a phone survey risk assessment. To see a list of our Construction Loss Control services, click here.