The essence of construction risk insurance lies in the fact that at all stages of construction, from the development of a feasibility study to the commissioning of an object, it remains possible not only to compensate the insured for sudden and unforeseen losses but also to protect investments in construction.
At the same time, the enterprise gets the opportunity to plan its future expenses using construction quoting software; allocate funds according to the financial plan; prevent unpredictably high losses that may result from damage, which helps protect private enterprises from bankruptcy and ensures their competitiveness.
Benefits of a Risk Management Solution
Remember that risk management is the way to avoid challenges with the building company’s predictions, costing, estimating, and post-construction performance. That is why it is reasonable to find the best-matching solution for your projects in the context of management solutions.
Additionally, your managers can count on the simplified mode of work. For example, the best-matching management solution is the automated algorithms applied for routine task performance. These digital tools for managers (if they suit your business operations and goals) can bring several benefits at once.
Benefit #1 – Reducing Claims for Lost Time and Wages
The most popular cause of disputes between an employee and an employer is the issue of payment of wages. Using the software will allow all parties to monitor the precise fulfillment of their obligations: how much time was spent on work, and how long they are at their workplace. For employees, this is a kind of guarantee of payment, earned money.
Benefit #2 – Improvements for Effectiveness of the Security Program
Improving efficiency through the use of the software enables all construction site workers to significantly improve safety at work. In addition, companies control their accident risk costs more closely. When reviewing an insurance company’s project, it may increase the amount of the insurance payment if the outcome is highly traumatic. The lower the risk, the less cost the company will incur.
Benefit #3 – Decreased Injuries and Other On-Site Safety Risks
Construction is associated with an increased risk of injury. Each company is required to keep a record of all accidents that have occurred to save on additional costs. The use of advanced digital programs will significantly help save the time needed to complete all the paperwork, and will also help reduce the number of accidents.
Benefit #4 – Boost COVID Compliance
The whole world is covered by the second wave of COVID-19. Most insurance companies advocate that all safety measures be followed at construction sites to reduce the risk of spreading the disease. Every construction company should have a plan of action on what to do if one employee is found to be infected with COVID-19.
Insurance Costs Can Be Cut Through New-Gen Tech Solutions
So, can technology lower insurance costs? In many cases, yes. Remember that new-gen technologies and digital solutions for construction risk management can make a difference in the context of budget planning.
This is the list of the best-matching tech approaches for contractors are:
- 3D models – make it possible to see and calculate each risk. Most managers use these algorithms of automation to transform the risk management peculiarities into paperless and automation-friendly ones.
- GPS-tracking – controls the implementation of safety rules and the quality of work of employees at the construction site. The win-win strategy for construction risk management as well.
- Sensors with artificial intelligence are potentially unsafe for human health and the environment among the factors during construction. Nevertheless, more and more on-site sensors appear for remote construction risk management together with lasers, and other garments based on the microelements.
- Software – document control, accounting, storage, and comparison of data to reduce risks and claims. Most digital tools for costing, estimating, and bidding is essential for construction risk management.
To sum up, new technologies that form the risk management strategy for contractors are a new normal in construction. Find your own benefits when it comes to the implementation of 3D modeling, digital costing, GPS-tracking, and other approaches for your building company and business in general.