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The importance of risk engineering in construction cannot be overstated. We work closely with all of our clients to tailor a program specifically designed for their unique business and needs. We will be proactive in helping your firm prevent injuries and accidents because we will take the time to know your business and people. Partnering with SML Capital Advisors www.smlcapitaladvisors.com and having access to their engineers and top notch team is essential for us to provide best in class service in this area.. 

In addition to providing insurance coverage that is not only broader and developed specifically for the construction industry, another way to offset some of the challenges posed to the construction industry is by embracing some of the many forms of technology that is currently available. Embracing new technology serves the dual purpose of improving performance and safety while sending a clear message that the industry wants to attract the next generation of construction workers. Much of the technology available in the market now encourages collaboration and makes communication easier between sites and offsite locations as well as from one section of a job to another. This type of real-time communication has been proven to reduce risk and improve quality. Moreover, data collected from the new technology can help contractors when facing accusations of construction defect.  

From the real time training and inspections made possible by wearables to documenting the work being performed via drones, technology can help build a more robust QA/QC process and reduce risk when combined with better communication and collaboration. It can also help prevent injuries and help locate workers during emergencies. 

We are partnering with CR Solutions www.c-r-solutions.com , a leading national wrap-up administration firm on our project business to provide our customers with best in class program management and the latest and most sophisticated technology. We are confident that our underwriting expertise and CR Solution’s second-to-none project administration, and certificate/insurance tracking teams will provide you with a program that will run seamlessly.  

Contractual risk transfer is a fundamental concept in risk management used to determine which party is in the best position to manage an identified risk and then assigning the risk to that party. This is no easy task, considering the need for collaboration among numerous parties, including owners, contractors, subcontractors, architects, engineers and others. From a general contractor’s position, this is an area that has been of increasing concern. 

For example, when negotiating with subcontractors, general contractors should insist that, at a minimum these provisions are included in the subcontractor’s insurance contract: 

· The GC is endorsed as an additional insured on the subcontractors GL policies (with specific editions and dates for example- CG 20 10 11/85 and CG 20 37 10/01 or equivalent) providing coverage for both ongoing and completed operations. 

· Limits are sufficient and in force prior to project inception. 

· The contract defends and indemnifies the GC for liability arising out of the subcontractor’s work or negligence. 

· The contract provides additional insured coverage to the GC on a primary and non-contributory basis on their GL policy. 

· The contract includes a waiver of subrogation among the parties and requires the parties to procure insurance policies that permit the waiver of subrogation. 

A contractor shouldn’t assume these provisions are in the contract. Having conversations early in contract negotiations is a communication must. The clearer a contractor can be with their must haves as well as areas where they can be flexible, the smoother contract negotiations will go and the fewer the potential disputes. If they have accepted risk through indemnity provisions within their contract, having the financial means to meet their obligations is an important consideration. Insurance is one way to manage this risk. It is imperative that they work closely with an insurance broker and our MGU to determine both what coverage and limits to purchase. Nobody wants surprises when it comes to what is covered and what is not, so the importance of proper coordination of coverage cannot be overstated. When preparing insurance requirements in the construction contract, all stakeholders must know their responsibilities. 

Having designed solutions and tested our theory on numerous construction sites, we have existing partnerships and significant relationships with risk engineering firms to implement real-time sensor data into our risk management recommendations and operating routines.

These water prevention programs will monitor buildings and other job sites with IoT sensors to provide location specific, real-time alerts.

1. Monitoring capabilities include water, temperature, humidity and flow.

2. Communications via a cellular enabled gateway with battery backup. Instant alerts and 24/7 monitoring available even during power outages.

3. Secure portal to view sensor data and analytics tools for analysis and insights (e.g. leak detected, water usage patterns, and water running time).

4. Actionable alerts sent via text, e-mail and/or phone to designated contacts.

5. Mobile app or web for dispositioning and summary stats.

Direct benefits related to insurance

- More favorable terms and pricing if loss ratios improve

- Real-time, proactive risk monitoring

- Increased, value-added service engagement from the MGU/Carrier

Additional, non-insurance benefits

- Find, diagnose and solve problems faster

- Less employee time spent maintaining and monitoring job sites and facilities

- Prevention of unexpected business interruption

- Lower energy bills as a result of enhanced insight into water usage

- Reduction of out of pocket costs (deductibles, small losses)

Wearables for worker safety and productivity

· We have existing partnerships with many technology firms and will partner with risk engineering consultants to implement real-time sensor data into our risk management recommendations and operating routines

· We have tested our theory within the industry with multiple construction accounts and are keenly aware of how this technology will impact a client’s results.

We will use this technology to:

· Help predict and prevent losses before they occur when possible

· Detect and mitigate losses through real time monitoring and intervention

· Fine tune pricing and coverage

· Provide risk engineering insights, recommendations and expanded services

· Streamline quoting and underwriting

· Expand risk tolerance