By Kris Queen | Construction Practice Leader
Now well into 2026, the construction industry continues to balance opportunity and risk. From economic pressures and labor shortages to new technology and stricter regulation, contractors are navigating rapid change while keeping projects on schedule and budgets in check.
At Seubert, we’re keeping an eye on the trends shaping risk, and opportunity, this year.
- Inflation, Costs, and Contract Pressure
Rising material prices, wage growth, and insurance costs are squeezing margins. Contractors who negotiate escalation clauses and review contracts carefully are better positioned to protect profitability and minimize disputes.
- Workforce Shortages and Safety Focus
Labor scarcity remains one of construction’s biggest challenges. As competition for skilled workers intensifies, companies are doubling down on retention, safety culture, and training programs to reduce turnover and injury-related claims.
- Regulatory Shifts and Compliance
New safety standards, environmental regulations, and reporting requirements are on the horizon. Staying ahead of compliance — from OSHA updates to state-level green building mandates, will be critical to avoiding costly penalties and project delays.
- Technology, Data, and Risk Insights
AI, drones, and advanced project analytics are transforming how contractors manage risk and track performance. Those leveraging data for predictive safety, claims prevention, and cost control are gaining a measurable advantage.
- Insurance Market Conditions
Construction insurance markets remain cautious, with continued scrutiny around large losses, subcontractor exposure, and project type.
Specifically, the Property & Builders Risk insurance marketplace is stabilizing due to increased capacity entering the market. However, casualty lines remain “firm” or “hard”. Litigation costs, social inflation and labor shortages continue to be the main drivers for the volatility in the General Liability, Auto and Umbrella lines of coverage.
Strategic Recommendations:
- Early Renewal Planning: Engaging your broker early and providing transparent, real time safety data can help secure better insurance program terms.
- Safety Technology Adoption: Insurers are increasingly rewarding firms that use wearable sensors, drones and digital documentation to prove proactive risk management.
- Captive Insurance Programs: More contractors are exploring group captive programs to manage insurance costs and gain more control over their risk.
Partnering with a brokerage that understands construction-specific risks helps contractors secure the right coverage and pricing, even in a volatile market. Navigating an ever-changing insurance marketplace can be challenging. Seubert is on top of market changes and will proactively work to secure the best insurance program for your business.
At Seubert, we help construction clients protect more than just projects, we help them protect progress.
From insurance and surety to safety consulting and claims support, our team helps contractors navigate risk with confidence 2026.
Kris Queen
Construction Practice Leader, Commercial Lines
Kris joined Seubert’s Commercial Lines Division as our Construction Practice Leader in 2025, bringing over 20 years of industry experience. In this role, he focuses on helping companies proactively identify and quantify risk while building strong client relationships. He leads the coordination of Seubert’s construction resources to deliver tailored insurance programs and products that support each client’s operational goals.
Contact Kris to see how you could minimize risk.
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