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Lessons From Coronavirus

 
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Old 08-02-2020, 05:29 AM   #1
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Lessons From Coronavirus


Lessons From Coronavirus

2020 has been a year of disruption and upheaval, right? The Coronavirus pandemic has also brought some lessons the Construction Industry can take into the future, no matter the size of your business.


What Coronavirus is teaching us

1. The unexpected will happen


Few people around the world considered that a global pandemic would occur. Even fewer were prepared for it. Major public health emergencies are always a possibility, but most people are complacent. “It won’t happen to us,” is a common refrain. Coronavirus has demonstrated that unforeseen events do happen. In construction, there are always many unknowns. This is a big wake up call for many contractors.

2. The consequences can be severe


Contractors have been affected differently by the Coronavirus. Some projects have felt minimal impact, whilst others have been abandoned indefinitely. The situation has shown that when an unforeseen event occurs, there can be consequences. Sometimes this can mean a minor inconvenience. At other times they can be devastating to your business. A similar situation can occur in the normal course of your operations. An unforeseen event, like a liability claim, can be devastating to your business.

3. You need a strategy to manage your risks

Coronavirus has illustrated that contractors need a strategy to manage your risks, not only the ones you know you face in this industry, but also for when the unexpected happens. In classic risk management, you have 4 options. These are to:
  • avoid,
  • reduce,
  • accept or
  • transfer your risk.
What strategy do you have in place to keep your business going over this period of project shutdowns, delays, and uncertainty? One of the most effective strategies is to transfer financial risk to another party. This is the purpose of insurance. You may not have policies in place to protect your business from consequences of the pandemic, however, you can put a risk mitigation strategy in place fr the future.


Transfer the risk

General Liability Insurance protects your business in the event of a liability claim. Running a safe site is most important. Accidents do still happen, however. If you or one of your employees are the cause of bodily injury or damage to the property of a third party, you can face a lawsuit. Insurance assists with the costs of your defense as well as settlement costs.


Protect your business from expensive liability claims

Contractor Liability Insurance covers you for the following liability claims:
Bodily injury - the actions of your company result in physical injury
Property damage - the property of a third-party is damaged
Reputation damage - a claim of libel or slander that damages the reputation of another
Advertising mistakes - if your advertising causing financial harm to another

Reminder: Prepare for the worst

Litigation in the construction industry is becoming commonplace. The nature of the work also means that accidents can happen frequently. A lawsuit can be devastating to your company. The legal process is expensive and the settlement that is awarded can be very high. Few contractors are able to pay for these costs themselves. It can mean that your company has to close. You could lose everything you own.


Take action NOW!

Coronavirus has shown us that the unexpected can happen, with consequences that can be devastating. Have you taken this into account in your risk management strategy? Call Farmer Brown Insurance on (888) 973-0016 to assess and adjust your coverage.
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Last edited by FarmerBrown1229; 08-02-2020 at 05:34 AM.
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