Across the United States, construction is booming. A strengthening economy following the financial hardships of the COVID-19 pandemic means that ground is being broken on new construction projects in nearly every state. With all of these projects, however, come significant risks. Construction site owners and managers need to be aware of common risks. Understanding common construction industry risks can supplement the risk management protections of Utah heavy construction insurance, and serves to create a safer workplace for construction employees.
The Construction Industry: An Overview of Risk Factors
It is well understood that the construction industry faces numerous risks in its daily operations. With so many projects and employees relying on heavy equipment, injuries are common. Add into the equation many potentially hazardous workplace conditions and construction materials, and it is easy to see why the industry is known for higher-than-average worker injuries, including fatalities.
According to the Occupational Safety and Health Administration (OSHA) and the U.S. Bureau of Labor Statistics (BLS), over 1000 construction workers lost their lives in workplace accidents in 2018. This number represents about 21% of all worker fatalities across industries for that year. Of those construction worker deaths, about half were caused by the so-called “Fatal Four” causes:
- Falls
- Strikes by objects
- Electrocutions
- Caught in/caught between (crushed, compressed, or tangled in equipment, materials, or structures)
In the state of Utah, about 3.9 workers out of every 100,000 are killed on average each year. The construction sector is known for having the highest non-fatal occupational injury rate in the state, accounting for millions of dollars in lost productivity and medical expense. This hammers home the need for Utah heavy construction insurance.
Common Risks in Construction
High fatality rates and the BLS “Fatal Four” are only some of the many risks the Utah construction industry experiences. In fact, according to the Construction Injury Institute, there are well over 100 discrete risks in this sector. Of those many risks, only a handful are considered common. It is important to note that not all risks are injury-related; the construction industry experiences a complex dynamic of supply chain, financial, and labor factors that influence risk exposures.
- Labor issues, including labor shortages, productivity/efficiency, and labor quality factors.
- Safety hazards, including worker injuries and deaths, property damage or loss, and equipment or materials present on construction sites.
- Issues with management and coordination of construction projects, including miscommunication, supply chain breaks, schedule delays, and discrepancies between plans and actual site conditions.
- Financial issues, including cost overruns, inadequate budgeting, excessive losses, and legal claims (liabilities and disputes).
In all of these common risks, uncertainty is the central component. Many factors influence the success and safety of a given construction project, and unforeseen circumstances can quickly derail even the best-laid plans. To manage complex projects, many companies rely on software solutions to improve communication, reduce cost overruns, and protect the integrity of operations. Construction teams are also employing industry best practices in safety training and hazard elimination.
Utah heavy construction insurance is designed to provide coverage against the uncertainty inherent in these common risks. Specialized insurance programs for the construction sector provide a range of liability coverages as well as business interruption, commercial property, and workers’ compensation protections. Many insurance programs also offer a range of risk management solutions, further providing peace of mind for site owners and managers. With Utah heavy construction insurance and a thorough understanding of common risks in the industry, construction companies can better manage their risks, leading to greater productivity and safety throughout the sector.
About BTC Insurance Services
Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach, and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457, or send us a message here.
