Construction companies are navigating labor shortages, rising claim severity, tighter margins, evolving contracts, and increasingly complex projects. Acrisure’s Construction Risk Report for 2026 explores some of the key risks impacting owners, developers, subcontractors, general contractors, architects, and engineers.
KEY PRESSURES IN 2026
How unmanaged risks can impact construction operations
Instead of focusing solely on winning new projects or building high performing teams, many construction companies also spend time evaluating potential risks and how operational issues could impact margins, people, and reputation.
This report is designed to help organizations shift from thinking what could go wrong to refocusing on what can be accomplished next.
Key challenges that construction companies face
92% of construction companies report difficulty finding skilled workers. At the same time, many are trying to grow, take on more projects, and stay competitive in an increasingly complex market.
With growth can also come pressure. And for many companies, risk is an added stress.
Construction companies are facing some serious challenges, such as:
- Less experienced workers may be up to 5X more likely to be injured than seasoned workers.
- Rising insurance claims, including construction defect claims, that can be filed up to 10 years after job completion depending on the jurisdiction.
- More complex projects and contracts may lead to greater liability exposure.
- Unpredictable swings in the economy and construction spending.
It’s time to put risk back in its place so you can win more jobs, hire and retain the right people, and help protect your profitability.
INSIGHTS BY SUBSECTOR
The Key Risks for Construction Companies Like Yours
Different sectors of the construction industry face different unique risks and challenges. Click on one of the boxes to dive into the unique risks and opportunities that your operation may be facing.
KEY INSIGHTS
Key Risks Across the Construction Industry
From insurance market conditions and workforce shortages to increasing project complexity and contractual risk allocation challenges, construction companies are navigating a rapidly changing risk environment. Explore several trends shaping the industry and considerations that may impact construction operations and business planning.
Insurance Market
A Changing Insurance Market That Varies by Subsector
The insurance market for construction companies can vary widely based on many factors such as type of work, region, and past performance.
In some segments, insurer capacity appears to be expanding which may contribute to more competitive or stable pricing for certain coverages. However, higher-risk, large-loss, or fleet-heavy accounts may continue to face more limited capacity and pricing pressure.
While some general contractors may be experiencing modest pricing relief, certain smaller trade contractors may continue to face greater challenges due to factors such as rising claims severity, social inflation, and high auto liability rates.
Workforce Risk
The Increased Risk of An Inexperienced Workforce
As the construction industry copes with a workforce shortage, some companies are facing high turnover rates and pending retirements from tenured employees. According to industry surveys, approximately 70% of construction companies report difficulty hiring qualified workers.
With annual turnover rates that can exceed 50% and an estimated 41% of the current workforce set to retire by 2031, the reality is that less experienced workers are increasingly being relied upon.
Studies suggest that workers with less than one year of experience may account for roughly 45% of all construction related injuries. This higher risk may be driven by factors including lack of training, unfamiliarity with hazards, and supervision challenges.
Project Complexity
Complex Projects Creating Risk Management & Insurance Challenges
As construction companies try to manage liabilities associated with increasingly complex projects, transferring certain risk onto appropriate project partners can become an important strategy to help mitigate exposure. When working on complex projects, it is increasingly important to review project specifications, contractual obligations and insurance coverages to help identify any gaps. In some cases, firms might unknowingly assume contractual risk from partners that leave them exposed to long-term financial risks.
Thoughtful risk transfer practices can play an important role in supporting effective project management.
Risk Transfer
The Risk Transfer Dilemma
How risk gets transferred between different construction stakeholders is often one of the biggest and most complicated risks that construction companies face. As projects and contracts become more complex, and values and claims cost increase, reducing your liability exposure can be critical. So how do you offset or transfer this risk?
The common practice is through Contractual Risk Transfer, which can help reduce your risk exposure and may help lower insurance costs and requirements. However, risk transferred away from you is risk that gets transferred to someone else. Negotiation between parties as to who bears each risk is often a critical part of contract negotiations for any new project.
High-performing construction companies are often aware of the risks they are transferring and the risks they retain so that they can better help protect their organization.
Connect with a construction specialist.
Let’s build the right solutions for your business’s risks.
