b'WCA EDUCATIONCONSTRUCTION RISKNavigating bonding and insurance during a pandemicBy Christopher Wiens andScott Gilmour, Apex Surety & Insurance Ltd.As the world deals with the threat of COVID-19, thepostponed projects, now is the time to carefully review following seven risk management considerations will helpliability pricing, adjusting estimated sales volume to limit disruption and ensure your business and projectssafeguard against overpayment.remain protected and on track: 5.Minimum Retained PremiumsInsurance policies1.Site SecurityProject site security remains anguarantee the insurer a minimum premium in the eventimportant consideration for Builders Risk (COC) policies.a policy is cancelled. These amounts typically range from Insurers typically have unique warranty stipulations100 per cent to 25 per cent and are negotiable. Premium within their wordings that outline required site securityfinancing companies charge varying amounts depending measures for coveragea combination of watchmen,on the amount of the policy that is refundable in the video surveillance, alarms or fencing are commonlyevent of cancellation. Lowering the minimum retained expected. Noncompliance with a warranty condition maypremium can lead to more advantageousvoid coverage or cause a more in-depth review in thefinancing rates.event of a claim.6.Asset AllocationReduced work leads to construction2.Project Schedule ChangesProject-specific insuranceequipment and automobiles sitting idle for periods ofand surety premiums are affected by the durationtime. Reducing or eliminating collision or all-perils of a project. Increased hygiene and social distancingcoverage can result in immediate savings.Coverage measures are reducing production and leading tounder contractors equipment, blanket rental equipment scheduling delays. Proactively advising your insuranceand other policies can be amended to reflect a change in and bonding providers of anticipated extensions willusage, resulting in reduced annual insurance cost.allow for a more collaborative approach to negotiating7.State of EmergencySince a province-wide state of premium stemming from scheduling changes. COVID-19 has increased the potential for temporary site shutdownsemergency was declared in Manitoba on March 20th, and any changes to project schedules should be made2020, insurance companies have responded by enacting with careful consultation and review of the terms of thetheir own policy conditions designed specifically Builders Risk policy. to address these exceptional circumstances. Select insurance policies include Declaration of Emergency 3.Going DigitalThe pandemic has spurred ownersendorsements which provide mandatory extensionsand consultants to seek an alternative solution toof renewal dates and greater flexibility respecting receiving original signed and sealed bonds. E-bondspayment. It is important to speak with your broker to are an effective solution that provide the same leveldetermine if your policy includes such an endorsement, of assurances as a physical bond without the need foras it can provide opportunity to extend expiring rates a physical copy. E-bonds add a level of security to theand coverages during a time when insurers are placing bond issuance process by requiring a unique passcodeupward pressure on pricing and reducing insurance or PIN reserved for senior management and allowingcapacity and coverage. greater efficiency. Contractors should discuss onlineApex Surety & Insurance Ltd. is a boutique constructionbonding platforms with their broker, along with ownersand design professional-focused insurance and bonding and consultants, to take advantage of this brokerage based in Winnipeg, Manitoba. Combining emerging technology. experience from insurance markets and brokers in Toronto, 4.Winnipeg and London, Apex operates with a client-focused Reduced Work = Reduced Risk?Insurers underwrite a contractors liability policy primarily based on twomodel that offers global reach, knowledge and expertise to factors: the risk associated with their operations andour clients. their sales volume. With the potential for delayed or 18 BUILD MANITOBAwinnipegconstruction.ca'