Rising construction costs could put insurance on back burner

The insurance industry has been warned that rising construction costs could lead to clients challenging the cost of their insurance.

Commenting on research conducted by Royal Institution of Chartered Surveyors (RICS), David Smith, construction, power and engineering director at RSA, said: “Insurance will represent a cost which will be built into the tender price so inevitably it will be strongly challenged. The industry however needs to guard against driving premiums to an unsustainable level to fund against claims costs. This can ultimately result in subsequent price corrections or even a lack of capacity to support builders