Advisen released a white paper that examines the fundamentals of construction risk management. It drills down on the nuts and bolts of construction risks and mitigation procedures. Insights on controlled insurance programs, commercial building construction, and workers compensation insurance are highlighted throughout the free, 5-page report sponsored by Starr Companies.
Construction is inherently a high-hazard profession, and companies that don’t place a high priority on safety risk can see their injury rates escalate.
The long-awaited turnaround for the construction sector since the Great Depression is a double-edged sword as contractors continue to be exposed to significant risks. Expanding workforce coupled with a shortage of skilled labor in many markets are some of the concerns contractors continue to face. Increased construction activity is requiring some contractors to do more with less, or to hire less skilled workers to keep up with demand. These practices can increase the likelihood of defective work and poor performance, liability to third parties, and employee injury, leading to a spike in workers compensation insurance.
Additional details on emerging risks in the construction industry and viable risk mitigation procedures are outlined in the report.
Insurance should play a key role in every contractor’s risk management program. Capable insurers with a history of writing construction risks have a deep level of understanding and familiarity with the industry. There is not a one-size-fits-all insurance solution as every contractor possesses its own unique set of exposures. Customized solutions, however, provide comprehensive protection tailored to a contractor’s specific risk. In addition to indemnity protection, insurers also support clients with a wide-range of loss control and risk mitigation services.