In construction, every detail matters. A construction company faced a significant water claim that highlighted the importance of oversight and risk management on job sites.

What Happened?

As the general contractor neared completion of a new two-story business building, a subcontracted plumber was working on a Friday night to install valves. When wrapping up work before the weekend, they accidentally overlooked a small leak from one of the valves they had just installed. Though minor at first glance, this leak began to spread through the walls and trickle down to the first floor.

With the site unattended and unchecked over the weekend, the general contractor returned on Monday morning to a shocking scene: extensive water damage throughout the property.

The Water Claim

The leak turned the upstairs washroom into a soggy mess, while further issues were discovered inside the walls and in the reception area on the first floor. The damage was extensive, affecting not just the flooring and moldings, but also electrical fixtures and structural elements of the building.

Fortunately, the general contractor had a Builders Risk insurance policy in place, resulting in the damage being covered. However, the damage was done and the construction timeline was significantly affected.

Lessons Learned

One of the critical takeaways from this incident is the need for daily inspections of construction sites, especially after subcontractors have completed their work. A simple check at the end of each day could have identified the leak before it escalated into a major loss.

The lesson for all business owners: ensure the general contractor or project manager conducts thorough checks to prevent costly claims and damage. Have on-site monitoring over weekends and during times when there isn’t active construction.

Additionally, modern technology can enhance risk management practices: There are various automatic leak detection solutions available that project owners and contractors can explore to safeguard their sites.

By implementing diligent oversight and embracing new solutions, companies can significantly mitigate these risks and protect their projects from unforeseen damage. As the construction industry continues to evolve, so too should our approaches to safety and risk management.

Credit and special thanks to our insurance company partner, Victor Insurance, for sharing this claim example and risk management strategies.

Do you have a Construction Project on the go?

Interested in your own Builders Risk insurance policy? For more risk management tips and commercial insurance solutions for your construction project and business, please reach out to a Staebler Broker to learn more.

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Staebler Insurance is a general insurance broker specializing in car insurance, home insurance, small business, and commercial insurance. Staebler brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Listowel, Fergus, Elora, Wellington County, Perth County, Waterloo Region and southern Ontario. Get a Quote to get started today.