Recommend proactive and preventive measures to reduce the potential for loss
The Construction Executive CE article Top Issues and Trends for Construction Contractors to Watch in 2020 identifies numerous persistent market issues undermining the profitability of projects and hampering the ability of contractors to mitigate risks. One of the issues is adverse weather and weather events, impacting productivity, safety, and risk.
Author Danette Beck, a National Construction Practice Leader at USI Insurance Services, highlights how both normal adverse weather and unusually severe weather crippled many regions of the United States over the past several years, from storms to tornadoes to hurricanes. Further, dry weather and high winds fueled dangerous wildfires and caused tremendous destruction.
Beck addresses the risk exposure of building products, heavy equipment and work results to weather events, as construction organizations confront increasing property risks. For example, weather catastrophes and fire events damaged project sites, construction materials and equipment resources, resulting in substantial property losses for facility owners and site operators.
As a result of the increase in insurance claims associated with weather events, many insurance carriers “…react by limiting insurance and increasing premiums…” — which inhibits contractors’ ability to obtain insurance coverage to meet contract requirements. Further, some standard insurance policies do not cover specific weather-related losses.
In summary, Beck confirms the mission critical need for contractors to understand weather risk and related exposure, and ensure that the required insurance coverage is put in place to protect construction worksites and physical assets. Further, insurance carriers and underwriters recommend proactive and preventive measures to reduce the potential for loss.
About the Author
Written by Danette Beck – National Construction Practice Leader, USI Insurance Services
Danette Beck, CPCU, ARM, CRIS, is with USI Insurance Services’ Valhalla, NY office. USI’s construction practice group leverages the USI ONE Advantage® with clients across the country. USI ONE is a fundamentally different approach to risk management, integrating proprietary business analytics with a networked team of local and national experts in a team-based, consultative planning process to evaluate the client’s risk profile and identify targeted solutions.
(Source: Beck, Danette. “Top Issues and Trends for Construction Contractors to Watch in 2020.” Construction Executive, Safety and Risk, Construction Executive, 25 Feb. 2020, www.constructionexec.com/article/top-issues-and-trends-for-construction-contractors-to-watch-in-2020.)
Construction Executive is the magazine for the business of construction. It reaches more than 55,000 commercial, industrial and institutional contractors and construction-related business owners and has won more than 20 editorial awards. Since first being published by Associated Builders and Contractors Services Corp. in 2003, the magazine has served as the leading source for news, market developments and business issues impacting the construction industry. Each issue includes articles designed to help owners and top managers run a more profitable and productive construction business, covering hot-button issues such as workforce development, insurance, estimating, project management, safety and liability, technological advancements and legislative action.
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