Construction Insurance 2022: Moving Past COVID-19

April 19, 2022
Chris Brophy - Construction Executive

The construction industry has seen many changes in the past few years. Significant growth in commercial and residential construction projects was met head on by COVID-19 constraints. The next few years are likely to see a new set of challenges as COVID-19 issues subside, labor shortages persist, inflation reignites and interest rates increase. The trend toward work-from-home, brought upon the world by necessity, will also be tested and could have a significant impact on the demand for commercial real estate.

COVID-19 insurance claims were filed by many policyholders and were challenged by all insurers. In some cases, claims are not being paid even though coverage is clear; some policyholders have strong wording for coverage for losses due to “infectious disease” or losses due to a “declared public health emergency” or similar wording. But, two years after the start of COVID-19, many of these claims have unfortunately not been paid by insurers. Conversely, some policies contain unambiguous exclusions for infectious disease, but losses are still being pursued by overzealous policyholders. Other policies contain more ambiguous wording; many are “all-risk” policies that don’t include clear exclusions. The courts will continue to decide their resolution.

Reprinted courtesy of Chris Brophy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


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