The construction insurance market is still deeply entrenched in a hard cycle, but a notable divide is emerging beneath the surface. While general contractors (GCs) are beginning to see modest signs of relief, like more carrier capacity and greater competition, smaller trade contractors face steeper hurdles than ever. It’s a segmentation that’s reshaping how agents approach coverage, pricing, and client strategy.
According to Kevin Hahn, SVP at Jencap, this trend is becoming increasingly clear. “We’re seeing a divide emerge in how general contractors and trade contractors are being treated in the current market,” explains. “It’s forcing agents to think differently and act more strategically.”
In states like New York, where labor laws and litigation risks are especially pronounced, general contractors are beginning to benefit from more favorable conditions. Carriers are showing renewed appetite for accounts that demonstrate strong risk management, clean loss history, and sophisticated subcontractor controls. More excess capacity is available, and rates are stabilizing for the most desirable risks. The general contractor insurance market is looking up.
But when it comes to trade contractors —such as exterior masons, steel erection, roofers, and concrete workers—it’s a different story. Hahn notes, “These types of trades operate from heights, require a direct labor work force, and are heavily exposed to the New York Labor Laws.” As a result, insurers are pulling back, reducing capacity, tightening underwriting guidelines, and layering in more exclusions. Even accounts that were once considered solid are now seeing steep premium increases or struggling to find coverage at all. In some cases, agents need to turn to non-admitted markets or explore layered program structures just to get a quote.
Construction insurance is no longer treated as a single monolithic category. Today’s underwriters are segmenting more aggressively by trade, geography, job type, and risk profile. General contractors—especially those in commercial or institutional work—may still find options, but trade contractors in higher-hazard classes are being carved out and scrutinized with a much finer lens.
“This segmentation means we can’t rely on what worked last year,” Hahn says. “Each client now needs a tailored approach. What’s available to one contractor might not apply at all to another, even within the same market.” For agents, this segmentation presents both a challenge and an opportunity, requiring a deeper understanding of carrier appetites and the ability to match each client’s operations and safety protocols to the right program structure.
To serve clients effectively in this fragmented construction insurance landscape, agents need to be proactive, prepared, and creative. That includes:
As the segmentation trend between general contractors and trade contractors accelerates, agents need a wholesale partner with the relationships and insight to navigate the shifting terrain. Jencap’s casualty team has deep experience in construction insurance and access to the carriers, programs, and strategic thinking needed to place tough risks.
“Our relationships across the construction sector allow us to think outside the box when placing coverage, especially for trades,” says Hahn. “That kind of flexibility and market knowledge is essential right now.” The construction insurance market isn’t softening across the board—it’s splitting. Agents who understand this divide and adjust their strategies accordingly will be the ones who succeed in guiding their clients through it.