The Insurance Risk of Not Embracing Technology

Date:

New innovation tools help builders protect their business

Builders and developers, like many business owners, often find themselves juggling multiple roles and responsibilities that extend far beyond their core expertise. From being skilled homebuilders to handling accounting, marketing, and HR tasks, they are expected to wear numerous hats. This overwhelming workload not only hampers their productivity but also leaves them with little time to focus on crucial aspects of their business, including insurance and risk management.

Fortunately, technology and artificial intelligence (AI) offer a solution to this problem. By embracing innovative tools and streamlining processes, builders can transform their operations and protect their businesses from potential claims. The future of home building lies in the intelligent integration of technology and insurance practices.

Which innovative tools do you use to manage subcontractors?

One area where technology plays a significant role is in managing subcontractors. Insurance carriers often require builders to ensure their subcontractors have specific insurance coverage. Merely collecting certificates of insurance is no longer sufficient. At Strategic Insurance Services, we leverage AI-driven technology to provide a comprehensive service that collects all the necessary documents for each subcontractor and project. Our system verifies the insurance coverage to ensure compliance with the builder’s insurance requirements. Even if builders themselves struggle to adopt technology, they can still work with vendors who embrace technological expertise to mitigate risks effectively.

Moreover, technology and AI offer tools for effective communication and documentation. Builders can leverage advanced communication platforms to streamline interactions with subcontractors, vendors, and clients. AI-powered chatbots can provide quick responses to inquiries, ensuring efficient and accurate communication. By documenting all communication and project-related information, builders create a robust record that serves as evidence in case of disputes or claims. Clear and transparent communication throughout the construction process not only builds trust with clients but also helps identify and address potential issues early on, preventing them from escalating into costly claims.

The insurance landscape

The insurance landscape is constantly evolving, with coverages and requirements changing regularly. Builders who fail to adapt to these changes put themselves at risk. Many builders, overwhelmed by their day-to-day responsibilities, neglect the importance of staying informed and updated. Insurance carriers are increasingly implementing stricter guidelines and penalties for non-compliance. With technology, builders can stay ahead of these changes. Automated systems can provide timely reminders for policy renewals and ensure that coverage remains adequate. By embracing technology, builders can save themselves from the unpleasant surprise of discovering inadequate coverage when a claim arises.

In conclusion, the future of home building lies in the effective integration of technology and insurance practices. Builders must overcome the industry’s antiquated nature and embrace innovative tools to streamline processes, manage subcontractors, communicate effectively, and stay updated with insurance requirements. By leveraging technology and AI, builders can protect their businesses from potential claims, enhance productivity, and ensure a successful future in the construction industry.

Author

  • Stephanie Beninati is the owner of Strategic Insurance Services. She has been working with the building community since 2008. She has served on the Board of Directors for the Home Builders Association of Metro Denver and the Home Builder Foundation.

Stephanie Beninatihttps://www.strategicinsservices.com/
Stephanie Beninati is the owner of Strategic Insurance Services. She has been working with the building community since 2008. She has served on the Board of Directors for the Home Builders Association of Metro Denver and the Home Builder Foundation.

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