Construction plays a massive role in the American economy. In the most recent episode of The Accel Advantage Podcast, we sat down with three powerful minds to discuss insurance for contractors.
- John Tatum, VP – Construction Business Unit Lead at UFG Insurance
- Chandler Lamm, Shareholder & Risk Advisor at The Accel Group
- Jonathan Patterson, Sales Executive at The Accel Group
Together, they shared valuable insights on the state of the market, the attributes of a strong construction account, and more.
Whether you’re a general contractor, specialty trade, or growing construction company, these takeaways can help you strengthen your business and manage risk more effectively.
Market Update in the Construction Industry
According to John, today’s construction industry remains stable. A few major trends shaping the current environment include:
- Data Center Growth
AI isn’t just reshaping technology. It’s also reshaping construction. Massive data center builds across the country are generating significant demand. These projects require skilled labor and long-term community development.
- Aging U.S. Infrastructure
Bridges, roads, water systems, and transportation networks continue to need reinvestment, creating consistent opportunities nationwide.
- Labor Shortages and Rising Costs
Finding and retaining skilled workers remains one of the biggest challenges for construction companies. Rising labor and material costs continue to influence margins and, in turn, affect workers’ compensation and overall insurance for construction companies.
Attributes of a Strong Construction Company
When it comes to partnering with carriers and securing competitive construction business insurance, certain attributes consistently set great contractors apart.
According to Chandler, a best-in-class construction account typically demonstrates:
- A solid risk management program
- Fleet safety and telematics usage
- Solid subcontractor agreements and risk transfer practices
- Documented safety policies and training procedures
Building a Culture of Safety
Safety isn’t just compliance. It’s culture, and it starts at the top. Carriers may look for:
- Consistent safety training
- Clear communication protocols
- Apprenticeships
- Documented new-hire training and mentorship
- Low employee turnover
- Visible, everyday safety habits on job sites
The Two Cs: Communication and Complacency
Jonathan introduced two critical concepts that impact nearly every construction claim:
- Communication: Assuming something is “common sense” is one of the quickest paths to an incident. Clear, consistent communication prevents mistakes, confusion, and unnecessary risk.
- Complacency: When things have gone well for a long time, people naturally let their guard down. Many significant losses occur not from lack of knowledge but from routine tasks performed without full attention.
Contractors who reinforce these two principles build safer teams, experience fewer claims, and present a better risk profile to insurers.
Choosing the Right Broker or Advisor
From a carrier’s perspective, the quality of the broker matters as much as the quality of the contractor.
John highlighted several reasons why selecting a specialized construction insurance advisor is essential:
- Expertise matters. Contractors benefit from advisors who work in this industry every day, as it’s a hazardous industry.
- Stability matters. In construction, large losses are possible. You want advisors and carriers who support you long-term.
- Placement matters. Specialist advisors know which carriers have appetite and expertise for specific segments of construction.
- Consistency matters. Jumping carriers each year to chase price can harm your long-term cost of risk.
At The Accel Group, our construction insurance advisors specialize in this space. That specialization allows us to advocate more effectively, negotiate stronger terms, and ensure each contractor is matched with the right insurance partner for their unique operations.
Listen to the Full Podcast Episode
This recap is just scratching the surface! In the full episode, John, Chandler, and Jonathan share more real-life stories and actionable strategies. To hear the conversation, check out The Accel Advantage Podcast on your favorite streaming platform.
- Spotify Link
- YouTube link
- Search The Accel Advantage on all other platforms (Apple Music, Amazon Music, iHeartRadio, and more)
Read the accessible transcript here: EpisodeTranscript. We provide transcripts to ensure accessibility and a better user experience for all visitors.
If you’re interested in working with an insurance agency that truly understands your industry, get a quote today. We’re here to help you build a safer and more resilient business.