Construction Insurance Tackles Water Problem
As American re-urbanization continues, city buildings must expand in size to accommodate the increasing population density. More people means more pressure on the city’s infrastructure, including sewer systems. But how does this affect construction businesses?
Construction insurers are seeing a variety of water-based claims. For example, claims regarding water running backward up pipes and damaging roofs are not uncommon. Insurance companies believe this is because low-rise buildings are now expanding into multiple stories. The added construction calls for greater water usage, but the sewer system cannot always keep up with this demand. For example, major storms usually cause problems because the water has nowhere to go. The increased water damage results in increased claims.
The growing number of water claims can create challenges for construction companies of many shapes and sizes. In addition to urban density issues, climate shifts have made it more difficult to anticipate drainage needs in a given area. Non-frame related risks now include water damage as the biggest threat. Another major concern is sewer backup. Because this is a new issue, many construction companies are unfamiliar with the water problems that can plague their site.
The best way to reduce your construction company’s risk is to create a proper risk management plan. The Reilly Company Group can help you evaluate your risk to determine what level of coverage your business needs as well as develop and implement a risk management strategy. Contact us to learn more.