Construction is a risky business—whether it is trying to prevent accidents on the job or managing tight deadlines, everything involves taking risks. The key to success in construction is evaluating and managing risk.
With the current rate of growth in construction projects, many construction firms are continuing to have difficulty finding enough skilled workers. This is driving up the cost of labor, even as margins on construction projects remain tight. In fact, recent surveys by the National Association of Home Builders cite the cost and availability of labor as among the top issues contractors are dealing with today.
The Bureau of Labor Statistics reported 374,000 job openings in construction in June. According to an August Construction Dive report, “The nationwide demand for labor is dulling, but construction still faces a shortage of workers.” Likewise, Fox Business says the “shortage of skilled workers” is making it hard for construction companies to meet staffing needs to be able to meet deadlines.
With labor shortages and company profits on the line, construction firms can’t afford to take any chances with their risk management programs. A construction risk management team finds solutions for potential risks including those involving:
- Compliance Issues
- Fraud
- Customer issues/complaints
- Finance
- Liability Risks
- Safety Training
A formal risk management strategy is the cornerstone of a construction firm’s proactive approach to mitigating potential risks before they become costly disasters. By meticulously identifying, assessing, and prioritizing risks, these firms can develop targeted strategies to prevent or minimize the impact of potential issues. This proactive stance means not only avoiding unnecessary costs but also ensuring project timelines and budgets stay on track. Moreover, it fosters a culture of safety and compliance within the organization, promoting better decision-making at every level.
Part of a complete risk management strategy involves having the proper liability insurance protection. Specialized underwriters and brokers play a pivotal role in this process by tailoring insurance solutions to address the specific risks faced by construction firms. With a comprehensive risk management strategy in place, construction companies can confidently tackle projects, knowing they have a plan to address potential challenges head-on, ultimately leading to more successful, efficient, and profitable outcomes.
At C&S Specialty Underwriters, we understand the unique world your construction clients live in and the risks they face on an ongoing basis. We know liability protection for contractors — it is what we do. We can find a complete liability package for your construction clients. Contact us for more information!
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