# What the 2027 construction insurance outlook means for contractor COIs

> Umbrella and excess keep climbing while most other lines hold steady. That's exactly the line where contractors are most likely to fall short of project requirements.

Published Oct 26, 2026 by Forsured. Market outlook. Source: https://forsured.ai/blog/construction-insurance-2027-renewal-outlook/

![+5% to 15%: Forecast 2027 rate change for construction umbrella and excess liability](https://forsured.ai/blog/construction-insurance-2027-renewal-outlook/hero.png)

## The short version

- WTW's 2027 outlook for construction: umbrella and excess up 5% to 15%, auto up 5% to 15%, general liability flat to up 10%, workers' compensation flat to up 5%.
- Lead umbrella and excess on wrap-up programs (OCIPs and CCIPs) is also expected up 5% to 15%.
- When umbrella costs rise, trade contractors are tempted to carry less than project requirements demand, so umbrella is the line to check first on every contractor COI.
- Carriers favor firms with strong management of the contractors they hire, which makes a clean contractor COI record useful at renewal.

WTW published its Insurance Marketplace Realities 2027 report for construction on October 1. The headline for anyone managing contractor COIs: most lines are steady, and the expensive one keeps getting more expensive.

## The outlook by line

| Coverage | WTW 2027 forecast |
| --- | --- |
| Umbrella and excess liability | Up 5% to 15% |
| Auto liability | Up 5% to 15% |
| General liability | Flat to up 10% |
| Workers' compensation | Flat to up 5% |
| Project-specific builders risk (non-high hazard) | Down 2.5% to up 2.5% |
| Master builders risk | Down 5% to up 5% |
| Contractor's professional liability (annual) | Flat to up 5% |
| Wrap-ups (OCIP and CCIP), lead umbrella and excess | Up 5% to 15% |

## Umbrella has been the pressure point for years

This isn't new. Back in 2021, ENR reported that umbrella and excess renewals were costing contractors 50% to 100% more, as carriers raised prices, cut limits and raised attachment points. Rates have cooled since then, but umbrella keeps rising faster than the rest of the program.

## Why that shows up in your contractor COIs

Project requirements rarely bend to the market. If the contract calls for a $10 million umbrella, it calls for $10 million whether the trade contractor's renewal went up 5% or 15%.

Put that next to a bidding market where, as Construction Dive reported from ABC's Anirban Basu, jobs that once drew 2 to 4 bids are drawing 12 to 16. Thin margins and rising umbrella costs push in the same direction: carry less, and hope nobody checks.

So check umbrella first. On every contractor COI, confirm the umbrella or excess limit meets the project requirement, that it follows form over the underlying policies the contract requires, and that it won't expire before the work is done.

## The upside at your own renewal

WTW notes that carriers give favorable underwriting consideration to strong management of the trades a firm hires. A record showing every contractor checked against project requirements, with each gap tracked to a fix, is the kind of evidence an underwriter can use. A folder of unread certificates isn't.

## Common questions

### How much will construction umbrella and excess insurance rates rise in 2027?

WTW's Insurance Marketplace Realities 2027 report forecasts umbrella and excess liability rates for construction up 5% to 15%.

### Which construction insurance lines are stable in 2027?

WTW expects builders risk to be roughly flat (minus 2.5% to plus 2.5% for non-high hazard project-specific builders risk), workers' compensation flat to up 5%, and contractor's professional liability flat to up 5% on annual programs.

## Sources

1. [Insurance Marketplace Realities 2027: Construction](https://www.wtwco.com/en-us/insights/2026/10/insurance-marketplace-realities-2027-construction), WTW, Oct 1, 2026
2. [Prices Rise Sharply as Clouds Darken Construction Insurance Market for Buyers](https://www.enr.com/articles/51726-prices-rise-sharply-as-clouds-darken-construction-insurance-market-for-buyers), ENR, May 12, 2021
3. [3 economic factors determining construction's winners and losers: ABC](https://www.constructiondive.com/news/constructions-winners-losers-drift-farther-apart/832780/), Construction Dive, Oct 13, 2026

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