Construction Executive - September 2016 - 18

CONSTRUCTION EXECUTIVE | SEPTEMBER 2016 RISK 18 Q: How widespread is the adoption of telematics technology in the construction industry? Kreuzer: Using vehicle telematics is slowly gaining traction in construction. There are potential operational and safety benefits to incorporating telematics systems into an overall fleet management program. Clearly defining a strategy for using the technology and information gathered from it will help contractors get the most out of their system. While some telematics programs are developed with fleet management as a priority, others emphasize safety. Construction businesses that use telematics often pay greater attention to them for maintenance, routing and dispatching purposes, but do not always take advantage of the possible safety benefits. Having telematics devices that track driver behavior can be an excellent risk management tool when part of a holistic fleet management program. It can provide information that may help coach drivers on performance and improve safe driving behaviors. Contractors can improve their auto loss experience by integrating the use of telematics into an existing fleet management program. Keegan: While there are potential benefits to using telematics, having data that identifies unsafe driving patterns may create an obligation for contractors to act and hold drivers accountable. While state laws vary, in some jurisdictions, having access to the information and failing to address unsafe driver behaviors may create corporate liability that may not have otherwise existed. Many jurisdictional provisions unique to the construction industry can add to the complexity of this situation. Q: What insurance products should construction businesses consider to limit their financial liability and that of their drivers? Keegan: First and foremost, carrying excess limits above a contractor's primary auto policy helps ensure there's sufficient coverage to protect the company in the event of a serious loss. A significant amount of construction-related auto claims exhaust primary limits and extend well into a contractor's excess layers. Contractors are often viewed as "deep pocket" defendants, so it is extremely important for them to carry limits that can protect their assets. As auto severity continues to worsen, some firms routinely underestimate the necessary amount of excess liability limits coverage needed. In addition, having the appropriate non-owned auto coverage will help protect contractors with employees who drive their own vehicles on company business in the event that employee is involved in an accident. This is a significant area of potential liability for contractors that is often overlooked because the lines between what is business and personal use can be blurred. Working closely with an agent or broker to review their insurance program at least annually helps contractors address and manage the business's unique risks and financial responsibilities in the states in which they operate. Construction firms can be quite complex because the variety of vehicle types and mobile equipment commonly found in a contractor's day-to-day operations have differing statutory requirements. An agent or broker who has a broad understanding of the construction industry can help the owner effectively navigate these complexities with confidence. Carriers with a specialized focus on the construction industry can offer various fleet and equipment safety and training resources, as well as strong claims expertise to help control costs when an accident occurs. Q: Do construction businesses mistakenly believe certain insurance products do not apply to their company or industry? Keegan: An area contractors often overlook is their exposure to pollution liability claims. Construction site runoff, disposal, excavation, alleged seepage, accidental spills, utility strikes, accidental rupture and many others could cause pollution. While it may not be obvious, a vehicle or piece of equipment is often involved in a pollution-related issue. Having a broad pollution policy backed by a carrier with construction claims expertise can be a major advantage in the event of an incident that involves an allegation of pollution liability. In some cases, pollution coverage can be purchased on a combined policy that includes coverage for professional liability. Lauren Pinch is managing editor of Construction Executive. For more information, email pinch@abc.org, visit constructionexec.com or follow @ConstructionMag. http://www.constructionexec.com

Table of Contents for the Digital Edition of Construction Executive - September 2016

Industry Insider
In Brief
Washington Update
Construction Markets
Risk
Safety
Workforce
No Bounds to Success
Special Section: Construction Technology
Business Development
Community Outreach
Viewpoints
Construction Executive - September 2016 - Cover1
Construction Executive - September 2016 - Cover2
Construction Executive - September 2016 - 1
Construction Executive - September 2016 - 2
Construction Executive - September 2016 - 3
Construction Executive - September 2016 - 4
Construction Executive - September 2016 - 5
Construction Executive - September 2016 - Industry Insider
Construction Executive - September 2016 - 7
Construction Executive - September 2016 - In Brief
Construction Executive - September 2016 - 9
Construction Executive - September 2016 - Washington Update
Construction Executive - September 2016 - 11
Construction Executive - September 2016 - Construction Markets
Construction Executive - September 2016 - 13
Construction Executive - September 2016 - 14
Construction Executive - September 2016 - 15
Construction Executive - September 2016 - Risk
Construction Executive - September 2016 - 17
Construction Executive - September 2016 - 18
Construction Executive - September 2016 - 19
Construction Executive - September 2016 - Safety
Construction Executive - September 2016 - 21
Construction Executive - September 2016 - Workforce
Construction Executive - September 2016 - 23
Construction Executive - September 2016 - 24
Construction Executive - September 2016 - 25
Construction Executive - September 2016 - No Bounds to Success
Construction Executive - September 2016 - 27
Construction Executive - September 2016 - 28
Construction Executive - September 2016 - 29
Construction Executive - September 2016 - 30
Construction Executive - September 2016 - 31
Construction Executive - September 2016 - 32
Construction Executive - September 2016 - 33
Construction Executive - September 2016 - 34
Construction Executive - September 2016 - 35
Construction Executive - September 2016 - 36
Construction Executive - September 2016 - 37
Construction Executive - September 2016 - 38
Construction Executive - September 2016 - Special Section: Construction Technology
Construction Executive - September 2016 - 40
Construction Executive - September 2016 - 41
Construction Executive - September 2016 - 42
Construction Executive - September 2016 - 43
Construction Executive - September 2016 - 44
Construction Executive - September 2016 - 45
Construction Executive - September 2016 - 46
Construction Executive - September 2016 - 47
Construction Executive - September 2016 - 48
Construction Executive - September 2016 - 49
Construction Executive - September 2016 - 50
Construction Executive - September 2016 - 51
Construction Executive - September 2016 - 52
Construction Executive - September 2016 - 53
Construction Executive - September 2016 - 54
Construction Executive - September 2016 - 55
Construction Executive - September 2016 - 56
Construction Executive - September 2016 - 57
Construction Executive - September 2016 - 58
Construction Executive - September 2016 - 59
Construction Executive - September 2016 - 60
Construction Executive - September 2016 - 61
Construction Executive - September 2016 - 62
Construction Executive - September 2016 - 63
Construction Executive - September 2016 - 64
Construction Executive - September 2016 - 65
Construction Executive - September 2016 - 66
Construction Executive - September 2016 - 67
Construction Executive - September 2016 - Business Development
Construction Executive - September 2016 - 69
Construction Executive - September 2016 - 70
Construction Executive - September 2016 - 71
Construction Executive - September 2016 - Community Outreach
Construction Executive - September 2016 - 73
Construction Executive - September 2016 - Viewpoints
Construction Executive - September 2016 - 75
Construction Executive - September 2016 - 76
Construction Executive - September 2016 - Cover3
Construction Executive - September 2016 - Cover4
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