Managing Construction Industry Risks

So many factors contribute to the risks a construction business. From finding qualified workers to protecting against potential cyber threats, there is no shortage of managing risk within the industry. Therefore, it goes without saying that the right Albuquerque Professional Liability for Construction Businesses is a must. Let us take a closer look at some of the threats the construction industry faces and how to reduce liability for your company.

Labor Shortage

Due to the 2008 recession, many qualified workers were coerced into finding new employment, and finding talent in today’s market has been a challenge. According to The Construction Executive, this shortage is having a direct effect on workers’ compensation claims and premiums because fewer workers are carrying a greater portion of the workload and newer workers are less skilled or in need of additional training; certain companies facing labor shortages could see losses increase by 30 percent on average, which could result in a dollar-for-dollar increase in the workers’ compensation experience modification.

Furthermore, this factor may lead to inability to bid on contracts, Experience Modification Rate issues, and a delay in projects. In order to combat this, provide incentive for qualified laborers to work for your company- foster a culture of honesty, pay them well, and encourage mentorship programs to get people in the door.

Delivery Methods

What was once a small feature is now the ideal way to design and build construction projects. Rather than the owner negotiating with various suppliers, the new design-bid-build model of bidding requires more collaboration and productivity. However, the design component of this model is often uninsured. Therefore, consult with your insurance professional to ensure the proper coverages are carried to really protect you and your business.

Cyber Security

As we mentioned in a previous post, cyber threats are a reality in every industry. Anyone who uses computers for business is susceptible, so don’t wait on obtaining and cyber liability policy.

At Daniels Insurance, Inc., we have a unique understanding of the risk exposures that the construction industry faces. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.