Construction industry: Reducing insurance related cost with technology
Over the past several years, the construction industry has been positively booming with new technology. Construction is a high-risk industry. One of the largest focus areas for growth has been technology improving worker safety. Reducing injuries, insurance claims, and fatalities is undoubtedly a great area to focus on when developing new technology.
As contractors continue to deploy more technology onto the job site to reduce risk and injuries, the real question remains: can it affect the bottom line? If technology can help us avoid as little as one injury, the savings are over $25,000. With this much on the table, technology seems inexpensive. New technologies and processes have the potential to make it possible to bypass traditional means of insurance.
Mobile technology: Mobile technology can also reduce the time it takes to resolve disputes and miscommunication and enables real-time communication with all members of a construction team as well as faster incident reporting and injury documentation, all of which can help reduce the risk of injuries and the cost of workers' compensation claims. Regardless of fault, both parties can move on and resolve issues more quickly with the proper electronic documentation. Fewer miscommunications and accidents can lead to a reduction in construction insurance claims.
Wearable: With wearable technology’s popularity and growth in consumer markets, the construction industry is now considering how to use different features to improve worksite safety. Wearable technology include monitoring an employee’s movements and providing real-time alerts if work conditions become dangerous. Smart helmets, for example, turn traditional hardhats into on-the-ground safety systems that can detect a worker’s level of fatigue or a worksite’s temperature. As another example, gear like augmented-reality glasses can provide workers with real-time guidance and detect errors before an accident, which, along with the proper training, could help improve productivity and safety.
Cloud based software:Vetting and hiring quality subcontractors are essential to create an efficient jobsite, due to the complexity of work; trades tend to suffer from miscommunication issues. These miscommunications can cause serious mistakes and rework, leading to contractor default. Collaboration software ensures that contractors and their subs working together on one project can stay in close contact with one another. When working on a big project together, cloud software enables contractors and their subs to access documents, record information and share ideas. Tracecost jumps in here to plug in any gaps.
Robotics:Robotics continues to redefine certain aspects of the construction business with significant benefits including safer worksites and fewer injuries. From a financial standpoint, these benefits can also translate into lower construction, financing, and insurance costs. Robotics enables skilled workers to spend more time overseeing the project and work in conjunction with robots to become more efficient.
Drones: Fast-pace growth of commercial drones continues to make a big impact on the construction sector, with nearly 40 percent of construction companies using these tools today. These devices assist in major cost, and safety benefits which can translate into lower risk as well. For example, drones allow builders to leverage data to conduct preconstruction simulations. This gives builders the ability to test various models and a design which ultimately helps reduce the chances of error once actual construction begins. Moreover, the ability to perform construction tasks remotely and unmanned also decreases the risk of worker injuries.
The construction industry is counting on technology to help improve worker's safety, strengthen risk management and minimise insurance cost. Without proper engagement from workers and employees any of these technologies will fail. Construction technology is a game changer for the insurance industry. By providing a real-time view into jobsites for the first time, and collecting and sharing key data, technology is driving critical safety and process improvements. And, it allows insurers to more accurately assess risk, determine liability and mitigate fraud, reduce costly claims and improve the overall bottom line.