Managing projects in the construction industry means managing risk. Every step in a project from before it has even started until after it has been completed can leave you open to potential risks. These are a few of the most common construction risks and the steps you can take to mitigate potential loss.
Construction companies should prioritize safety on every jobsite. It is far easier to create and enforce safety protocols than deal with the aftermath of an employee injury. Some of the best ways to promote worker safety is to frequently train employees on best safety practices and regularly test equipment to ensure it is working properly.
However, even if you take steps to create safe working conditions, the nature of construction work is filled with potential hazards. As a result, most states require construction companies to carry workers’ compensation insurance in order to cover medical bills for employee injuries. Additionally, general liability insurance helps protect against any injuries that result to visitors at the jobsite.
Job Site Security Risk
Job site security risks include vandalism, theft, and cyber breaches. Luckily, there are steps you can take to protect against these risks, including installing security cameras on site as a deterrent, as well as utilizing anti-theft systems on machinery. Builders risk insurance can help in the event of equipment theft or damage to structures under construction due to fire, weather events, and vandalism.
Utilizing technology to manage projects means you also need to put a cyber security plan in place. Not doing so can leave you open to cyber-attacks that can target proprietary and private data. If a cyber-attack does happen, cyber liability insurance can help cover a variety of expenses associated with data breaches including forensic investigations, lawsuits due to privacy breaches, and regulatory fines.
Complying with building regulations and codes is essential to avoiding project risk, and not doing so can put the company at risk for a lawsuit. Construction companies are often required to carry surety bonds, which act as a guarantee that the builders will follow all set standards.
Scheduling is another potential project risk. A scheduling delay can result from supply chain shortages, weather, and other factors which can lead to missed project deadlines. Errors and omissions insurance and professional liability insurance can help to protect your company if a client sues for negligence over a construction delay, an unfinished project, or substandard work.
Risk is unavoidable during a construction project but taking the proper steps to prevent a significant loss is essential. If you’re looking to ensure that company is properly protected, reach out to one of our local AssuredPartners Construction experts today.