Risk management for any business is important, but in a business that has a higher risk of injury and damages such as the construction industry, it is critical. No one can predict the unexpected, but planning for it is another matter. Statistics show that accidents happen and in the construction industry, as we know, they can be catastrophic. We saw the aftermath of two crane collapse accidents in 2016. These weren’t predictable, but with proper risk management, the construction companies would have been prepared for their occurrence.
Standard Risks in the Construction Industry
Every construction company contends with risks that are found at each project. Having the right risk management tools will help your business identify these risks along with others that can be detrimental to the success of your business if they are not included in your construction risk insurance. Some of the risks that are normal and occur regularly include issues associated with high winds, scaffolding and crane use. Dangerous objects lifted by the crane are a huge risk potential. From the swinging hook to a load of steel beams, the risk of injury and accident associated with this action is inherent in the industry.
Another risk that can affect the health of your business and your profitability is your scaffolding. An experienced construction company will have had their share of accidents because of scaffolding. It isn’t out of the ordinary for someone to slip and lose their footing or for mistakes to be made in putting up scaffolding. Even when everything is done by the book, scaffolding collapses do happen.
Another common risk is concrete pouring. This process is time dependent and everything must be ready for the pour to go as planned. Unfortunately, things can happen that interfere and accidents happen. Additionally, if something goes wrong and the pour is delayed, that load of concrete can go to waste and that is a great expense.
All of these examples are just a small sampling of common issues that need to be included in your risk management plan. Of course, if you are a seasoned construction business, you probably already have recognized these potential problems. However, you may not recognize every risk out there, and that’s where specialty risk services can help.
Finding Fantastic Risk Management Services
Specialty risk services are important for your construction business as they understand how to navigate the world of risk management. Understanding what your business needs in terms of construction risk insurance is important. You don’t want to be under insured and it’s just as important not to be over insured. In order to determine what risk management tools are right for your company, hiring the right specialty risk services company like Allied Insurance Brokers will take the burden of assigning risk off your shoulders.
A great risk management company will act on your behalf and help assign risk at each project so you are never burdened with risks that aren’t rightfully associated with your business. For example, your construction company should never be assigned risk that belongs to the architectural firm. If something happens as a direct result of design, the last thing you want is to have it billed to your insurance. Assessing responsibility and planning for the worst while expecting the best is the key to great risk management and a skilled specialty risk services company will adept at handling.
Finding the right specialty risk services for your construction company is worth it. They will help you handle all issues related to assigning risk. You must be certain that all workers hired on your crew and subcontractors are covered with construction risk insurance, while at the same time ensuring you are not taking responsibility for risk rightfully belonging to another company. After an accident has occurred is not the time to find that no one has insured for that risk.
A good specialty risk services provider will encourage you to have waivers of subrogation, allowing risk to be transferred under contract specifications, protecting your company from certain losses. This risk management tool is one you should go over with your risk management specialist. Risk management is a complicated business and hiring the right risk management insurer will help your construction business flourish without worry.
Stop worrying about your risk on the construction site. Be prepared and take a proactive approach to tackling risk head-on with help from Allied Insurance Brokers. Own your risk before it owns you and contact Allied Insurance Brokers today!
*Allied does not deem this blog entry as a complete and thorough listing or overview of the above topic, and does not recommend it be primarily relied on. It only highlights some common issues and resolutions. For a thorough overview, please contact Allied’s Risk Engineering Division.