Covid-19 Isn't The Only Threat Facing General Contractors In 2020 - Farmer Brown Insurance Agency - Contractor Talk

Covid-19 Isn't The Only Threat Facing General Contractors In 2020

 
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Old 08-02-2020, 05:01 AM   #1
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Covid-19 Isn't The Only Threat Facing General Contractors In 2020


Covid-19 Isn't the Only Threat Facing General Contractors in 2020

2020: what can we say? The year started positively for the construction sector. However, Covid-19 has interfered with the predicted upward trajectory that began so well in the Q1 with growth in construction spend. Naturally, this has made leaders in the industry nervous.

However, even though confidence is low, there are ways for contractors to remain competitive. In this article, we look at some of the actions you can take to stay competitive.

Letís start by looking at some of the threats keeping General Contractors up at night.

4 Threats to your construction projects
1. Project delays is the top issue facing contractors in 2020. Stay-at-home orders and social distancing has caused pauses in building projects.

2. Material costs: As a result of tariff uncertainties and limited supply, the pricing of building materials is rising. These costs in the residential construction market are the highest in 13 years.
But these are not the only risks that you face. Here are two industry risks that continue regardless of the new threats brought on by the coronavirus.
3. Shortage of skilled labor: According to the Bureau of Labor Statistics, over the last six years, new hires have only increased by 14%. Job openings have doubled in this time, however.

4. Safety: A construction site is inherently dangerous. More than 50% of contractors have experienced an injury or safety incident in the last year. There are many causes of accidents, which result in third-party or Workers Compensation claims. However, bodily injury as a consequence of negligence faces harsh judgment. Construction company owners can find themselves convicted of manslaughter.
Your building business is facing some serious risks. But what are some of the things you can do to improve your chances of success despite these dangers?

3 Positive trends to watch in 2020

1. Smart project management. General Contractors will keep up if they adopt new digital tools designed for the construction industry.
ē For instance, scheduling tools, apps, and software will help you to make quick, real-time adjustments. These changes can prevent expensive project delays.

ē A second benefit of digital technology is the mitigation of safety risks. For example, wearable sensors could significantly reduce financial damages from liability risks.
2. Prefabricated components. General Contracts who embrace modular building components will be able to reduce costs. For instance, less labor will be required on-site. With less labor on-site, there will be fewer safety incidents.

3. Contractor general liability insurance. General Contractors are encouraged to assess their coverage annually. This is because your business can grow or reduce in size, or you may be taking on bigger, more complicated jobs; or you may even have changed your location. All of these factors will impact your insurance.

And now we have the pandemic, an even more significant disruption. If your business hasnít been negatively affected then you are one of the lucky ones.

Taking all these risks into account, could you be underinsured? If you are, then your insurance carrier could void a claim. Now is the time to assess and adjust your contractor general liability insurance.

Mitigate your financial risk

Contact Farmer Brown Insurance Company for more information about risk mitigation through coverage. Our consultants will assess your Contractor general liability insurance and give you expert advice. Call (888) 973-0016
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