November 20, 2022

How Technology is Taking the ‘Risk’ out of Builder’s Risk

Jeremy Turkel

Technology is focused on reducing property & casualty and Builder’s Risk losses

New challenges in the AEC industry are popping up every day. The cost of materials continues to increase, designs are becoming more complex, and the amount of coordination needed on today’s projects is greater than ever. In addition to all of the complexities that go into planning for a large commercial build, procuring insurance has increased in complexity as well, notably Property & Casualty and Builder’s Risk policies.

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Builder’s Risk is a specialized type of insurance that helps protect construction projects. It generally covers property damage resulting from fire, lightning, explosions, theft, and vandalism. It also helps protect materials, supplies, and equipment on site. Additionally, insurers’ concerns over things like wood frame construction can make procuring an appropriate and cost-effective policy even more challenging these days.

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Site security is an important aspect of any construction project. Key security objectives include securing valuable materials and equipment, preventing vandalism and intentional damage, and ensuring only authorized personnel are accessing the site. Security is even more vital for wood frame structures given the combustible and costly materials involved. Following a number of serious fire losses in recent years, stricter site security measures have been required by insurers. Not only are the standard requirements of 6ft high fences still in place, and things like video surveillance becoming the norm, but we’ve seen new and extreme requirements dictated by insurers recently, including one of our partners being forced to hire a firetruck to stand guard on site 24/7.

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Technology Has Answers

While the challenges in commercial construction seem to be growing exponentially, the technologies being created to address them are becoming more readily available at the same time.

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Site Break-ins

Technology can bring real-time intrusion detection to the project without the need for someone to physically monitor the jobsite, or stare at cameras around the clock. In addition, contractors can utilize technology to easily create customizable, virtual geofences for motion detection when the site is closed, monitor no-go zones, and keep track of who is in hazardous areas. With real-time AI-powered motion detection, a user can specify what area they want monitored, when they want it monitored, and how they want to be notified in the event of an incident, all without having to rely on a third-party monitoring service.

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In the event that an incident has occurred — an injury claim, theft, or vandalism, utilizing an AI-powered “reverse search” feature gives the user the ability to quickly scan camera footage in a matter of seconds to find what they are looking for. Imagine being able to circle a small area in your video stream on site and search for any motion that took place within it, or limit the search to vehicle license plates from 2pm-3pm on Sunday, or personnel wearing a black jacket on Wednesday from 8am-5pm, AI-powered software gives you the ability to find exactly what you need without having to review hours of footage.

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Fire Detection

Innovation has also created best-in-class arson detection utilizing thermal imaging of the jobsite. While some companies utilize color information via CCTV cameras to detect fire, it is a much less robust solution when compared to thermal imaging. Thermal imaging allows a user to create multiple temperature monitoring zones with customizable thresholds which allow for the identification of hot spots pre-combustion. This can potentially prevent a catastrophe on the jobsite saving millions of dollars in losses and help avoid putting people’s lives in danger.

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Imagine being able to detect and notify the project team when hot-work is taking place. In real-time a user can determine if the proper permit was pulled, if a fire-guard is present, and if proper PPE is being utilized. Technology allows for remote management in an environment where visibility is critical.

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The Solutions

Forsight is a software company utilizing AI to detect and predict safety incidents, security threats, and management issues in real-time using CCTV cameras (that you already own or that we help install) — all in the cloud to be viewed anywhere, anytime. In addition to providing remote access to the jobsite for any user, technologies like Forsight address many use cases focused on safety and security specific to commercial construction and can be used to reduce or eliminate many risks commonly encountered on complex construction sites.

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While commercial construction continues to become more complex, and tasks like procuring insurance become more challenging, technologies like Forsight’s are continuing to innovate to help contractors solve for the most pressing issues being encountered today. Forsight has been hard at work creating unique and cutting-edge features specifically built for wood frame construction and helping contractors obtain the coverage they need more easily.

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Written by Jeremy Turkel, Senior Vice President at Forsight

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Jeremy Turkel joined Forsight in 2022 as SVP of Customer Operations. Forsight was created to help make existing camera systems 10x more powerful and help clients build their camera infrastructure from the ground up.