Vacant construction worksites face the risks of theft, trespassing, fires and other hazards. Potential losses might include the value of damaged or stolen materials, the liability of an individual being injured on the property, and the costs of organizational disruptions if an essential piece of equipment is vandalized or taken.
The insurance risks and liabilities associated with vacant construction sites can be extensive. Construction business leaders must be aware of their exposures to ensure they can adequately address them. In addition to purchasing comprehensive insurance coverage, these leaders can adopt several preventive strategies to maintain their vacant properties, thus reducing risk and liability.
Unattended Worksites: A Liability Minefield
Vacant construction sites can be a prime target for theft, trespassing and vandalism. It is also crucial to note that contractors can be held liable for injuries due to “attractive nuisances,” or dangerous conditions on a property that are likely to attract children and threaten their safety.
Moreover, vacant construction sites are susceptible to fire since they often contain combustible materials, are vulnerable to arson, and may lack fire protection systems with alarms and sprinklers. Fires can result in significant property damage, environmental harm, and injuries to those in the area of the fire or to firefighters responding to the incident.
Ways to Mitigate Vacant Property Risks
Construction business leaders can implement several measures to mitigate the risks and potential liabilities that vacant properties present. Such strategies include the following:
Install Security Systems
Prevent trespassing, theft and vandalism by installing security systems throughout the property. These systems should include proper lighting, sufficient signage, cameras and access controls.
Keep Property Hazard-Free
Ensure the property is free of hazards that could cause injuries to anyone on the property, including law enforcement officials, maintenance workers, firefighters and trespassers. All hazardous material, excess property, and combustibles in and around the site should be removed to avoid damage and potential fires.
Walls, ladders, equipment, ditches, lumber piles and other physical features could be classified as attractive nuisances and should also be removed or made inaccessible to children who may try to enter the property and play with them.
Add Monitoring Systems
Have monitoring systems in place to detect issues before they evolve into major loss-causing events (e.g., water leaks). Fire alarms and fire suppression systems should also be in place and operational.
Conduct Regular Inspections
Performing regular inspections of the vacant site can help immediately address any issues or risks.
Secure Adequate Insurance
Adequate insurance, such as builders risk insurance covers the property and any insurable materials on site against multiple perils, including fires, wind, lightning and vandalism. A licensed insurance professional can help construction business leaders select and secure the insurance policies that best meet their needs.
Final Thoughts
