Spring’s arrival often brings a surge in construction activity, which is good news for builders. Unfortunately, heavy wind, rain and unpredictable weather can make things really difficult on people, projects, and ultimately, profitability. Read on for pointers from pros about safeguarding your workers and business ahead of stormy times.
Proactive Preparation
At Construction Business Owner, Randy Dombrowski reminds us that in recent years, wind, rain and hail have really wreaked havoc on construction:
These destructive forces contributed to at least two dozen billion-dollar disasters in 2024 and a record number of such disasters in 2023. Flash floods turned construction sites into lakes, hailstorms pummeled equipment and materials, and spring winds, once considered manageable, now have the potential to cause considerable damage. The impact of these storms can be devastating to construction projects. Beyond the immediate damage to property and equipment, they can lead to costly delays, worker injuries and even project shutdowns.
Since it’s impossible to control the weather, it’s wise for construction business owners to control what they can: safeguarding crews, projects and profits, with strong planning and preparation. Start with people. As pros remind us, promoting a culture of care and safety for people on the job is the right thing to do—-and it’s also vital to the business, since, “workers are your most valuable asset.” Two action steps to protect your people are:
Form a response plan — Develop a comprehensive emergency response plan outlining procedures for various severe weather scenarios. This plan should include designated evacuation routes, on-site safe havens and clear communication protocols to ensure everyone knows what to do before severe weather strikes. Consider text alert systems, call trees or loudspeaker systems.
Train your team — To ensure a swift response, talk about your plan at the onset of a project and during daily safety briefings. If possible, conduct occasional drills with your on-site crews. This will help them understand your plan and better equip them to carry it out.
With plans to keep people safe, think further into critical functions, such as payroll, inventory, suppliers, and other essential processes related to projects on the docket.
As you develop backup plans (aka recovery strategies) to get functions and projects back on track after a disruption, remember to attend to communication strategies: “Establish clear communication protocols for everyone involved. This includes employees, clients and subcontractors. During a disaster, clear communication minimizes confusion and ensures everyone’s aware of the situation, and your recovery plan.” It’s also wise to communicate closely with your insurance carriers about options for managing risks. Obviously, this must be done well before bad weather forecasts make the headlines. In fact, on-going, proactive dialogue with your agent and carrier is the best way to ensure you are not shouldering all the burdens yourself. In partnership with your insurance representatives, take the time to weigh a variety of risk mitigation strategies such as:
- Business interruption insurance — This coverage helps you recover lost profits and cover ongoing expenses if a weather event disrupts your project….
- Additional coverages can be added to your policy, such as utility service interruption or contingent business income if a supplier is affected by severe weather….
- Installation floater coverage: Insures specific, high-value property and materials that you plan to install against damage when in transit or at a worksite prior to being installed.
- Builder’s risk coverage: Helps cover damage to property during the actual construction process — think of a storm damaging a project halfway through completion, a scenario playing out across the country.
- Contractor’s equipment insurance: Like materials, your equipment costs more today to repair or replace. Contractor’s equipment insurance helps protect equipment and tools at jobsites, during transit or in storage.
Important To Know: Water Damage
In construction, being proactive about the potential for disruptions is more important than ever. Water damage alone is a scary example of what can happen–even when the scope of a project does not include water. Both the frequency and cost of water damage claims have been on the rise. Claims data from Nationwide underscores the imperative for all contractors to lean in on prevention strategies:
- Nearly one-third of all liability losses on construction sites are caused by water damage.
- The cost of water damage claims has been rising year over year, with median claims costs up 21%.
- Since 2015, claims surpassing $500,000 have doubled, and those over $1 million have tripled.
- While plumbing and HVAC contractors face the highest risks, 40% of water damage claims stem from many other trades, including electricians and carpenters
Construction business owners encourage following these simple planning steps, before, during and after a project, to ensure your work and business is prepared to survive water damage.
Solid Foundation: Surety Bonds
Remember, Colonial Surety Company helps builders put a solid foundation in place too. In construction, surety bonds are more than mere paperwork; they’re a testament to your financial stability and commitment to completing projects. Colonial Surety Company helps construction companies of all sizes improve bidding capacity and demonstrate reliability. Our Hometown Bond Program provides local builders with credit based underwriting bonds for up to $250k—no financial statements required.
Got something bigger in mind? No problem. We have something special for growth bound construction companies too. Receive Free Business Credit Scores instantly, just for submitting an easy, speedy Pre-Qual for a surety line of credit in writing. Once qualified, welcome new projects in, as you leverage all the benefits of The Partnership Account® for Contractors, including:
- Written Bonding Limits: Receive your single and aggregate bonding limits in writing.
- Instant Bid Bond Issuance: Gain the ability to issue your own bid bonds within minutes, using our powers of attorney.
- Real-Time Visibility: Use your private dashboard to view your underwriting profile and insightful financial data in real-time.
Surety Bond programs for construction businesses of every size are right here:
Bonding Programs at Colonial Surety Company
Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed. Let’s connect today: Colonial Surety.