Project Delays Happen — Is Your Insurance Keeping Up? What the Construction Industry Needs to Know About Policy Extensions
The world of construction is changing, putting new pressures on contractors.
Supply chain issues that emerged during the COVID-19 pandemic have not been completely resolved, the cost of materials keeps rising and the skilled labor shortage continues to snarl project timelines. These obstacles have pushed some contractors to make decisions that increase their projects’ risk exposure.
These include taking on projects outside their scope of expertise or outside their typical market. There has been a shift in demand, for example, from the construction of single-family homes to multi-family homes like condos and apartment buildings. Contractors that previously specialized in single-family homes may take on a multi-family project to keep their business going, but may not be fully prepared for the more complex risks this type of construction presents.
“This means that the project is more likely to hit delays, and the contractor will be less experienced in spotting or circumventing potential delays,” said Shannon Piotrowski, Vice President of Underwriting, AmTrust E&S Specialty Casualty.
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