Most insurers providing architects and engineers professional liability coverage in the US plan to raise construction insurance rates in 2026, citing rising claim costs, economic uncertainty and new risks from artificial intelligence, a new Ames & Gough survey has found.
The survey polled 15 leading insurers representing a significant share of the US market. Among them, 73% are planning modest rate increases, largely in the single-digit range – positioning the sector hotter than commercial property and workers' compensation but cooler than commercial auto, where double-digit increases remain common.
Data from the Council of Insurance Agents and Brokers showed broader commercial lines pricing rose roughly 5% through the first half of 2025, while WTW's Insurance Marketplace Realities 2026 report described nearly every line outside excess casualty as entering soft-market territory.
Professional liability for design firms, by contrast, continues to firm.
Among respondents, 60% reported higher claim severity in 2025, up from 53% the prior year and 41% in 2023. No insurer surveyed reported a decrease. Rising defense costs were cited by 93% as a material factor, driven by more aggressive claim prosecution, increased eDiscovery use, longer resolution timelines, and higher panel counsel costs.
The forces behind those numbers extend beyond A/E lines. Research published by the Swiss Re Institute in September 2024 found that social inflation had increased US liability claims by 57% over the prior decade, peaking at 7% annually in 2023.
Third-party litigation funding has also expanded sharply – industry assets under management grew to $16.1 billion in 2024, per data cited by the US Chamber of Commerce.
For the construction insurance sector specifically, WTW's 2024 A/E marketplace outlook identified third-party bodily injury claims and design-build project delivery as the two leading severity drivers on infrastructure projects.
The Ames & Gough survey reflected this pattern, with 80% of respondents ranking structural engineering as the highest-severity discipline, followed by civil engineering at 73% and architecture at 60%.
Despite severity concerns, nearly all insurers indicated no change in the availability of limits. Some 80% said they can provide limits exceeding $5 million, while 40% can offer up to $10 million.
"Although many insurers are willing to provide higher liability limits, they continue to treat these requests with greater underwriting scrutiny," said Jared Maxwell, vice president and partner at Ames & Gough.
With 80% of insurers viewing AI adoption by design firms as a potential disruptor, Maxwell noted that its use "must be supported by disciplined controls, transparency and accountability."
Contractual risk transfer drew similar attention in the construction insurance market, with 80% of respondents saying project owners' risk transfer attempts now factor into professional liability insurability assessments.
