STATE OF THE INSURANCE MARKET

A Guide for Concrete Pump Company Owners, Part 5

by Travis Bennett, Associate Director, National Casualty Loss Control at Risk Strategies, part of the Brown & Brown Team

Editor’s note: This is the fifth article in a series to help concrete pump business owners navigate rising costs in today’s hard insurance market.

Earlier this year, Risk Strategies released its 2025 report on insurance market conditions. While the report indicates specific areas like property insurance are stabilizing, casualty lines — including auto liability and umbrella policies — remain under pressure due to rising claims costs, nuclear verdicts and inflation.

Below are the rate forecasts with the greatest impacts on concrete pumping companies:

• Auto liability: Premiums are expected to rise 10 to 20 percent by year’s end, driven by increased claim severity, distracted driving and nuclear verdicts.
• Workers’ compensation: Rates remain stable, with slight increases or decreases depending on loss history and program size.
• General liability and umbrella: Rates are increasing by four to 10 percent for general liability and by five to 35 percent for umbrella policies, with higher scrutiny on high-risk industries like construction.

WHAT’S PUMPING UP COSTS?

Several interconnected factors have been creating pressure on insurance costs in recent years. Material price volatility, driven by tariffs and supply chain disruptions, has resulted in increased project risks and extended completion timelines. Labor shortages have forced companies to hire less experienced workers, potentially increasing workplace incidents and claims frequency. Climate-related events, like wildfires and severe storms, have led to stricter underwriting and higher premiums for property insurance. Additionally, compliance with evolving safety and environmental regulations has added complexity and cost.

“Social inflation” has been driving up liability claims and jury awards. Social inflation refers to societal trends and legal shifts that lead to higher awards, increased litigation and greater corporate liability. Key factors include evolving public attitudes toward corporate responsibility and risk; more litigious environments; the erosion of tort reform; advanced medical care for injuries; and the influence of social media and litigation funding on jury decisions.

STRATEGIES TO CONTROL COSTS

Pumpers can soften the blow of rising insurance costs by adopting the following approaches.

Increase deductibles strategically. One of the most effective ways to reduce insurance premiums is through raising deductibles. By retaining more risk, companies demonstrate confidence in their safety programs while reducing the insurer’s exposure to smaller claims. This approach works particularly well for companies with strong loss histories and adequate cash flow to be able to manage higher out-of-pocket expenses. Concrete pumpers should consider implementing a tiered deductible strategy, where different coverage lines carry deductibles appropriate to their risk tolerance and financial capacity. For example, choose a $25,000 auto deductible while maintaining a $5,000 general liability deductible.

Tell your story. Comprehensive submission data serves as your company’s first impression with underwriters. A compelling insurance submission should include a persuasive narrative explaining your business operations, safety culture and risk management initiatives. This narrative should highlight what sets your business apart from competitors and why you represent a superior risk. When possible, include at least 10 years of loss data to provide underwriters with sufficient information to identify trends and assess your company’s risk profile accurately. Organize this data clearly, showing not just claim amounts but also the circumstances surrounding each incident and corrective actions taken as a result. Detail your equipment maintenance programs, driver training initiatives and safety protocols — and quantify these efforts wherever possible. For instance, “Implemented monthly safety meetings resulting in a 40 percent reduction in recordable incidents over three years.”

Leverage in-person meetings. Sometimes risks appear worse on paper than in reality. In-person meetings or video calls with underwriters provide opportunities to clarify complex situations and demonstrate your company’s professionalism and commitment to risk management.

Prepare thoroughly for these meetings by assembling team members who can speak knowledgeably about operations, safety procedures and risk controls. Bring visual aids, such as photos of equipment and job site conditions. These meetings allow underwriters to put a face to the submission and often result in more favorable terms than purely paper-based transactions.

Show risk-reduction efforts. Underwriters want to insure companies that are actively working to reduce their risk exposure. Clearly communicate recent improvements and ongoing initiatives. These might include:

• Installation of telematics systems to monitor driver behavior
• Implementation of pre-task safety planning procedures
• Investment in newer, safer equipment with advanced safety features
• Participation in industry safety training programs, like ACPA’s Operator Training Program
• Safety certifications or awards

Document the improvements with specific timelines, implementation costs and measurable results. For example, “Invested $50,000 in dash cameras across our fleet in 2024, resulting in a 30 percent reduction in at-fault accidents and faster claim resolution.”

Prepare for carrier visits. Insurance carriers conduct loss control visits to assess risks and provide recommendations for improvement. These visits are opportunities to highlight your risk management program. Prepare your team by reviewing common loss control areas of focus: equipment maintenance records, driver qualification files, safety meeting documentation and incident investigation reports. Designate knowledgeable personnel to accompany the loss control representative and answer questions. These individuals should understand both the technical aspects of your operations and your company’s safety philosophy. Schedule visits when your best practices are visible. If possible, arrange for the representative to observe a safety meeting, equipment inspection or pre-job safety briefing. These demonstrations provide concrete evidence of your commitment to risk management.

Immediately address carrier loss control recommendations. Companies that promptly address carrier recommendations demonstrate their commitment to risk management. To do this, create a system for tracking and implementing the recommendations. Assign responsibility for each recommendation to specific team members and establish target completion dates. And, of course, document completion with photos — or certificates, when appropriate.

When you cannot implement a recommendation immediately due to budget constraints or operational requirements, communicate your timeline and alternative risk-mitigation measures. This transparency builds trust with underwriters and shows you take their recommendations seriously.

BUILDING PARTNERSHIPS WITH BROKERS AND CARRIERS

Regular communication with your insurance broker and carrier representatives helps build relationships and ensures your risk improvements are recognized at renewal time. Schedule quarterly check-ins to discuss any operational changes or improvement initiatives. Share positive developments, such as safety awards or new certifications. This ongoing dialogue keeps your company top-of-mind as a preferred risk when underwriters make capacity and pricing decisions.

Hard insurance market conditions have been in place since 2019. While we are seeing signs of gradual stabilization, pumpers must remain proactive in managing their insurance programs.

Focus on building a culture of continuous improvement where risk management becomes baked into daily operations. Companies that consistently implement such strategies will be best positioned to secure competitive coverage and control long-term costs.  

See other articles in this series:

• “Navigating Rising Insurance Costs in a Hard Market” (includes steps to implement a staff accountability strategy), Concrete Pumping, Fall 2024 issue
• “10 Best-in-Class Safety Practices to Lower Insurance,” Concrete Pumping, Winter 2025 issue
• “Excess Liability Coverage: How Much Do Pumpers Need?” Concrete Pumping, Spring 2025 issue
• “How Return-to-Work Programs Impact EMR,” Concrete Pumping, Summer 2025 issue