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9 Suggestions to Minimize Construction Risk

Risk management is one of the most important aspects of a construction project. The management of potential risks must be handled with precision. One common decision many choose to make when it comes to St George risk management is moving the risk to an insurance company. Here are 9 suggestions that will allow you to minimize as many construction risks as possible.


In St George risk management, nothing is more important than the contract. There are a handful of mandatory inclusions that all contracts should carry, including exculpation clauses, indemnity clauses, insured provisions, and a risk allocation plan.

Builder’s Risk

This type of insurance is typically inexpensive. Acquire it using a broad form policy and it will cover you in situations involving various hazards that could result in profit loss and project damage.

Insurance Brokers

Use an insurance broker so you know what situations actually need coverage and which ones don’t. A good broker can save you a lot of time, effort, and money by helping you make these kinds of decision. It’s a mistake to simply purchase insurance on every project no matter what.

Know the Policy

You’re doing yourself a huge disfavor by not reading policies immediately. Failing to do so can result in a lot of problems that would have been easily avoided. Simply depending on the insurance certificate is not enough. Promptly familiarize yourself with new policies.


Contractual language can often be difficult to understand perfectly, but make sure that you are aware of the prepositions. For example, the phrase “for whom” is significantly different in meaning compared to “with whom” when it comes to contractual obligations in the insurance industry. Make sure you understand exactly what you are and are not agreeing to according to the legalese.

Limit Restrictions

When discussing additional insured endorsements, it’s very important to stay privy to any limited restrictions as they have many ins and outs. Additional insureds have can varying amounts of coverage limits depending on what changes are made. Sometimes they can have access to a larger or lesser amount of policy limits according to the contract of the project. Overlooking or misunderstanding these limits can have major ramifications.


Waivers of subrogation carry a significant amount of weight in the area of St George risk management. They give up the power to reclaim covered losses from others. In the construction industry, more than one party becomes involved cooperatively. One of the reasons this is worth mentioning is because if you forgo subrogation, there may be a penalty associated with that decision. Correct decisions regarding waivers of subrogation are paramount.


When it comes to corporate programs and St George risk management, you may want to ponder on a surplus of wrap-up endorsement. A wrap-up endorsement is an insurance program that is controlled. These bring many benefits such as subcontractor policy limits that are higher than usual, less blame and conflict over claims, and of course savings. Wrap-ups aren’t expedient 100% of the time as they sometimes may fail to properly preserve your project’s interests due to the fact that all parties benefit from the limits. This is a situation where a broker will come in handy since the majority of insurance programs at the corporate level involve wrap-up exclusions.


The project and the St George risk management strategy need to be compatible. Two things that are vitally important to achieving this are whatever expenses you set aside for the unexpected as well as how you lay the foundation for field conditions. This is, in part, because a lump sum that is all-in is really no different than a max price that is guaranteed. In both cases, the price is still affected by growth. If there is no way for you to know how much insured future work is going to cost, consider obtaining claw-back provisions.

Article by Clear Content Marketing