RISK MANAGEMENT CONCEPTS FOR BUILDERS RISK PROJECTS. Adam Sellars, Inland Marine Risk Control Specialist - Travelers Insurance

Transcription

1 RISK MANAGEMENT CONCEPTS FOR BUILDERS RISK PROJECTS Adam Sellars, Inland Marine Risk Control Specialist - Travelers Insurance

2 What is Builders Risk Insurance coverage for buildings, infrastructure, renewable energy, etc. which are under construction Covers temporary and permanent works Broad additional named insured May include soft costs, loss of rent, and can be customized to match your needs Typically coverage ends once project is complete or when converted to permanent property coverage Coverage can be secured by owner/contractor

3 Sources of Damage for Builders Risk Water damage Vandalism Theft Fire Collapse of structure/equipment Severe weather Soft Costs from delays

4 Water Damage Potential Risks Water leaking from piping Poor installation techniques Frozen pipes Penetration Defective components During testing Wind driven rain entering building Flood Water from sprinkler head or firefighting efforts Clogged/inadequate roof drains

5 Water Damage - Solutions Develop water damage prevention plan Isolate water sources Identify and post locations of control valves Curbs and sleeves around vertical penetrations Monitor water flow electronically Monitor for water leaking in select areas End of day inspection Provide emergency response resources should a leak occur

6 Water Damage Vertical Penetrations

7 Water Damage Coupling Failure High Rise Condo Job was running behind schedule Occurred in mechanical penthouse Project 90% complete Water flowed for 5 hours All floors had some damage $1 million+ loss

8 Water Damage Frozen Pipe Commercial Building Freezing temperatures in uninsulated area Lack of temporary/permanent heat Responding personnel couldn t locate shut off valves Water flowed for 8 hours Six inches of water on first floor Multi-million dollar claim

9 Water Damage Booster Pump Failure High Rise Condo Failure occurred during testing Limited staff during test Project 80% complete A temporary water line, tied into the booster, was not capped When pump couldn t maintain pressure, test was called off Water flowed for six minutes from open line down electrical buss to basement $1 million+ claim

10 Water Damage Flow Sensors If water is to remain charged after work hours, consider water flow sensors

11 Water Damage Flow Sensors

12 Water Damage Sprinkler Tool

13 Fire Potential Risks Hot work Smoking Temporary heating equipment Flammable liquids/gases Gas powered equipment/refueling Arson/Intrusion Cooking Housekeeping

14 Fire - Solutions Develop and communicate fire prevention/response plan Identify activities requiring hot work Enforce hot work permits Enforce a no-smoking policy from the start Security measures Charge and monitor sprinklers early, if possible Provide fire extinguishers UL Listed self closing fuel cans/containers Keep waste containers and fuel storage well away from building

15 Fire Hot Work Permit

16 Fire - Temporary Heating Equipment Indirect vs. Direct Jobsite expectations/limitations for this equipment For direct fired heaters inside buildings: Placement/clearance UL listed/csa, ETL High temperature shut off Mechanically secured to prevent movement Tip over switch with auto shut off Electronic flame sensor/pilot safety valve Refueled outside building after cool down Shut off at night or monitored

17 Theft/Vandalism Potential Risks Material staging in and out of building Theft during working hours and at night Vandalism Theft of copper piping and other theft sensitive materials Jobsite equipment being used to gain access to connexes/buildings

18 Theft/Vandalism - Solutions Secure building during non-working hours Provide durable locks for connexes/buildings/gates Security guard Post orders Electronic surveillance Centrally monitored/ul Listed Site lighting Fencing/gates Inventory management/just in time delivery

19 Theft/Vandalism Electronic Surveillance

20 Your Role Develop a plan Communicate expectations Verify utilization Enforcement Evaluate effectiveness of plan

21 Questions Thank you! Adam Sellars Inland Marine Risk Control Specialist Travelers Insurance