Construction risks rarely fit neatly into standard market boxes. From multi-phase projects and layered contracts to evolving liability exposures, construction accounts often require more flexibility than admitted carriers can offer. That's where wholesale brokers and MGAs come into play.
For retail agents, understanding how to structure wholesale insurance for construction clients, and when to leverage an MGA like Novatae, can be the difference between losing an account and delivering a tailored, competitive solution.
Construction is inherently complex. Projects involve multiple stakeholders (owners, GCs, subcontractors), evolving job sites, and contract-driven insurance requirements that frequently exceed standard policy forms.
Some common challenges retail agents face include:
Standard markets may decline or restrict these risks. Wholesale brokers and MGAs provide access to non-admitted and specialty markets, allowing for:
A well-structured construction insurance program often involves multiple lines working together. Below is a breakdown of key coverages—and where wholesale placement becomes essential.
Builders' risk is foundational for any construction project, covering property during the course of construction.
Retail agents often encounter challenges such as:
Wholesale markets can offer broader terms and project-specific flexibility, especially for:
For a deeper dive, see How Does Builders' Risk Insurance Work? and Builders' Risk Soft Costs Explained.
Construction liability programs frequently require layered structures due to severity potential.
Key challenges include:
Wholesale brokers help structure:
Related reading: What Is Buffer Liability Insurance?
Design-build firms, contractors offering consulting, and specialty trades may have professional exposures not covered under GL.
Wholesale markets are often necessary for:
Read What Is Miscellaneous Professional Liability Insurance? to learn more.
Construction labor creates significant workers' comp exposure, especially for:
In some cases—particularly with independent contractors—alternative solutions like occupational accident coverage may be more appropriate.
Read Occupational Accident Insurance for Truckers to learn more.
Construction projects rely heavily on mobile equipment, tools, and materials in transit.
Wholesale solutions help address:
These risks often fall outside standard property policies, requiring specialty structuring.
Construction clients increasingly require niche solutions, including:
For a broader overview, read our article on What Is Specialty Insurance?
Retail agents don't need to navigate these complexities alone. Partnering with an MGA like Novatae Risk Group provides several advantages:
Wholesale brokers connect agents to carriers that actively write construction risks—especially those declined by standard markets.
As an MGA, Novatae can often underwrite and bind coverage directly, speeding up placement and reducing friction.
From monoline placements to fully layered programs, wholesale partners can tailor solutions to project-specific needs.
Construction submissions often hinge on details. Wholesale underwriters understand how to position risks effectively to carriers.
Explore our coverage capabilities in construction in more detail here.
Construction risks are evolving and so are coverage needs. Retail agents should be aware of several key trends shaping the market.
Larger project values, rising material costs, and nuclear verdicts are driving higher loss severity. This is increasing demand for:
Severe weather events are impacting construction timelines and jobsite risk.
Implications include:
Labor constraints are leading to:
This drives demand for:
Construction firms are adopting:
These innovations introduce cyber and professional liability exposures not traditionally contemplated in standard policies.
Owners and developers are increasingly shifting risk downstream via contracts, requiring:
Wholesale brokers play a critical role in ensuring policies align with these requirements.
Construction insurance is about structuring a program that aligns with contracts, exposures, and evolving market conditions. For many accounts, that requires stepping outside the standard market.
Partnering with an MGA like Novatae allows retail agents to:
If you're facing challenges placing a construction risk or simply want to expand your capabilities, working with a wholesale partner can unlock solutions that standard markets can't deliver.
This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.