According to a new survey by the Associated General Contractors of America Management, 67% of contractors surveyed believe the construction industry will change more in the next 5 years than it has in the past 50. The survey, entitled “Managing Risk in the Digital Age” also found that 90% of contractors have faced risks associated with shortages in skilled workers. Another big risk contractors have faced is related to design services, with 40% of those surveyed planning to move design services in-house.
The anticipated changes are good news for many of those contractors – they see the changes as likely to increase innovation and don’t feel the changes are being forced by technological advances. But they are hopeful the risk management industry will embrace change alongside them. Many contractors have noticed that over the recent years, there has been an uptick in risk that is not insurable like traditional risks have been. There is a need for liability insurance for things like design services and drones.
Is your construction firm ready to evolve with the industry? As industries evolve, it’s important to revisit key documents – think policies and procedures, safety manuals, protocols, etc. You’ll also want to stay up to date on the insurance industry. As new products come available, and as new types of claims are filed, we may see changes in insurance law that could affect your firm. These changes may create more innovation but along with innovation comes risk and we want to make sure your construction firm stays legally compliant to avoid unnecessary risk as the industry changes.