The Biggest General Liability Challenge Facing Contractors Isn’t Premium—It’s Litigation

For construction contractors, general liability insurance used to be relatively straightforward. You purchased a policy, paid the premium, and trusted it would respond when something went wrong.

That world has changed.

Today, the biggest challenge facing contractors isn’t just rising general liability premiums—it’s litigation and severe loss costs.

Across the construction industry, we’re seeing more lawsuits, higher jury awards, and claims that take longer—and cost far more—to resolve. Even what used to be considered a “routine” slip-and-fall or minor property damage claim can now escalate into six- or seven-figure settlements.

This trend, often referred to as social inflation, is putting pressure on insurers and contractors alike.

How Social Inflation Is Reshaping General Liability Insurance

Social inflation reflects a more aggressive legal environment, rising legal expenses, and juries that are increasingly willing to award large verdicts. For insurers, this means higher claim payouts and less predictability. For contractors, it means tougher underwriting standards.

As a result, insurers are responding by:

  • Increasing general liability premiums

  • Tightening policy language and exclusions

  • Raising deductibles or self-insured retentions

  • Scrutinizing contractors’ safety programs, contracts, and claims history more closely

Even well-run contractors with clean loss histories are feeling the impact.

What This Means for Contractors

From our conversations with contractors every day, the effects are clear:

  • Higher GL premiums, even without recent claims

  • More restrictive coverage terms

  • Greater out-of-pocket exposure through deductibles or retentions

  • Less certainty about how a claim will ultimately be resolved

General liability insurance is no longer just about having a policy in place—it’s about how well that policy protects your business when a claim turns serious.

How Haughn Insurance Helps Contractors Navigate This Environment

At Haughn Insurance, we specialize in working with construction contractors throughout Dublin, Ohio and Central Ohio, and we understand that today’s general liability challenges require more than a quick quote.

We help contractors by taking a proactive, construction-focused approach:

  • Risk review before renewal
    We review your operations, contracts, and loss trends so there are no surprises when your policy renews.

  • Contract risk transfer guidance
    We help you structure contracts with subcontractors properly—and verify certificates and coverage—to reduce downstream liability.

  • Coverage analysis, not assumptions
    We review your general liability policy language annually to identify exclusions, limitations, and gaps that could hurt you during a claim.

  • Claim support and documentation strategy
    When incidents happen, we help ensure reporting and documentation are handled correctly to protect your position.

  • Carrier relationships that matter
    We work with insurers that understand construction risk—not just price—so your business is presented accurately to underwriters.

General Liability Is No Longer “Set It and Forget It”

In today’s increasingly litigious environment, general liability insurance is about defending your balance sheet, protecting your reputation, and keeping your projects moving forward.

Contractors who take a strategic approach—focusing on safety, documentation, risk transfer, and coverage clarity—are far better positioned to manage rising costs and tougher renewals.

If you’re a contractor in Dublin, Ohio or the surrounding areas who is frustrated at renewal time or rethinking your general liability program, Haughn Insurance is here to help.