Whether it's stolen heavy equipment, vandalized materials or widespread water intrusion, the impact of construction site theft or damage can be devastating to a contractor.
Protecting jobsites against water, fire and theft
Risks are always present at a construction site � even when workers head home for the day. When no one is actively working at the site, it becomes highly vulnerable to losses from thieves and fire or water damage unless proper safeguards are put into place. Encouraging your clients to take proactive steps towards preventing theft and damage, such as leveraging smart sensor technology, may not only help mitigate loss, but in some cases, prevent the loss entirely.
Jobsite losses by the numbers
More than one-third
of all construction losses are due to water damage
Every 2 hours
a fire starts on a construction site, on average
11,504 burglaries
were reported on construction sites in 2021
Up to $1 billion
is the estimated total value of construction equipment stolen every year
Top causes of property loss at construction sites
- Water
The primary causes of water loss during construction are defective fixtures and poor workmanship, and labor shortages are directly contributing to the latter. In fact, 91% of construction firms are having a difficult time filling positions, according to a from the Associated General Contractors of America (AGC) and Autodesk.
Water losses are more likely to occur during water system testing, which is often toward the end of the project. This leaves most of the completed work exposed and potentially increases the severity of the loss.
These losses aren’t just limited to claims for structural damage. Loss of income, the expense to rebuild and the cost of relocating residents during any building repairs can all add up.
- Fire
Fires can spread rapidly at active jobsites, especially when sprinklers have not yet been installed or activated, and combustible materials are being loaded into the building.
Common causes of fire include:
- Hot work
- Temporary heaters
- Arson
- Smoking
- Flammable and combustible materials
- Temporary electrical and lighting
With walls often not yet complete, void spaces can create a wind tunnel effect during a fire, intensifying the flames. Firefighters may be unable to safely enter unfinished buildings, which can impede fire containment measures.
- Theft and vandalism
Jobsites contain a wide range of valuable items, from expensive construction equipment to costly materials. Materials and equipment on site can be a target of theft and vandalism, particularly when when no one is present, such as nights and weekends.
In fact, during Memorial Day weekend in 2022, heavy equipment theft totaled over $7M in value, with jobsites being the top target.
Costs from vandalism and theft on construction sites aren't limited to replacing, cleaning or repairing equipment � there can be a direct impact to the timeline of the entire project.
Project coordinators plan what pieces of equipment need to be onsite each day. When a piece of equipment is damaged and can't be used, the project can go off plan, impacting budgets and project timelines.
What's driving property loss?
's Jason Muise, Chief Underwriting Officer, Marine, Christina Villena, Vice President, Risk Solutions, and Amy Panagiotou, Assistant Vice President, Marine talk about what's driving property loss at active jobsites and technology-based services available to policyholders to help protect buildings under construction, materials and equipment.
The impact of property loss
While builder’s risk insurance can help ease the sting of a property loss, it doesn’t always make up for the impacts contractors feel after a site incident, which can include:
Schedule delays
Supply chain issues and material scarcity can delay the arrival of replacement parts, material and equipment, resulting in overall project delays.
Increased material costs
Parts, material and equipment often cost more to replace given the scarce supply and high demand.
Additional costs for skilled workers
Workers hired to perform certain tasks or operate specific equipment will need to be rehired once materials or equipment are replaced.
Reputational damage
Large thefts, vandalism, fires and significant water damage can quickly turn into news headlines, regardless of cause or fault.
Five questions to ask contractors
Ask your customers the questions below and if you hear a no, it's time to review their jobsite security practices.
- Does the contractor use water flow and leak detection sensors?
- Does the contractor use tracking devices for specialized tools and heavy equipment?
- Has the contractor registered their heavy equipment with the National Equipment Registry?
- Does the contractor do background checks on employees?
- Does the contractor use intelligent video surveillance?
Jobsite protection solutions
Our Hanover Risk Solutions vendor partners provide technology solutions to help contractors address their safety and security needs at low or no-cost, and sometimes, reduce deductibles in the process. By taking advantage of these partnerships, our Hanover policyholders can stay on top of a wide range of property damage risks to the job site to help mitigate the loss.
Water flow and leak detection
Hanover Risk Solutions partners with several companies that offer water detection and temperature sensors to help reduce the likelihood of a small leak or temperature change becoming a multi-million-dollar loss.
Heavy equipment tracking
BlueArrow provides asset tracking devices and service for heavy equipment to help clients make sure heavy equipment is where it should be―and not where it shouldn't.
Equipment theft protection
National Equipment Registry (NER) offers policyholders registration services for their construction equipment that makes it easier to track and recover stolen equipment in the event of theft—protecting clients� ownership, productivity, and output.
Background checks
IntelliCorp Records, Inc., offers background check and employment screening products, including criminal background checks, at a discounted rate utilizing some of the best screening tools in the industry.
Site security
IntelliSee turns clients existing security cameras into proactive risk mitigation tools with one simple AI platform that overlays their current system to help catch trespassers before they steal or vandalize.
Risk Solutions partners
Browse all of our Risk Solutions Partners and see how they can benefit your customers.
Protection solutions in action
See how customers have benefited from Hanover Risk Solutions partners.
Water damage averted
Construction was well-underway at a residential development when the project manager received a message on a Saturday that water was flowing.
Just days earlier, water flow and flood detectors had been installed on the water meter and at different locations in the basement, with set days of the week and hours of the day when water should not be moving through the meter. The project manager linked his cell phone to the detectors in order to receive alerts.
After receiving the message, the project manager drove to the site and found that a garden hose attached to the water lines had become disconnected. They turned off the water before damage could occur to drywall stored in the basement. Without the alert, water could have continued to flow until the project resumed the following Monday morning.
The damage to the drywall would have required its disposal, along with the disposal of other materials stored in the basement, which could have delayed completion of the project as construction material was in short supply.
A dangerous cold front
A project manager received a low temperature alert at project site during a cold front. Temperatures had dropped below freezing, to 23 degrees.
A suspicious theft
A Customs and Border Patrol officer in Laredo, Texas was suspicious of a Case 580M backhoe about to be taken into Mexico.
Builder's risk resources
Resources for your agency
Explore our builder's risk offering
Quote, bind and issue online
TAP Sales allows you to issue builder's risk policies quickly and easily.
Resources for your customers
Beyond the technology-based services, Hanover Risk Solutions offers a range of resources, education and training to help clients address their jobsite risks.
Protecting jobsites against water, fire and theft
Risks are always present at a construction site � even when workers head home for the day. When no one is actively working at the site, it becomes highly vulnerable to losses from thieves and fire or water damage unless proper safeguards are put into place. Encouraging your clients to take proactive steps towards preventing theft and damage, such as leveraging smart sensor technology, may not only help mitigate loss, but in some cases, prevent the loss entirely.
Jobsite losses by the numbers
More than one-third
of all construction losses are due to water damage
Every 2 hours
a fire starts on a construction site, on average
11,504 burglaries
were reported on construction sites in 2021
Up to $1 billion
is the estimated total value of construction equipment stolen every year
Top causes of property loss at construction sites
- Water
The primary causes of water loss during construction are defective fixtures and poor workmanship, and labor shortages are directly contributing to the latter. In fact, 91% of construction firms are having a difficult time filling positions, according to a from the Associated General Contractors of America (AGC) and Autodesk.
Water losses are more likely to occur during water system testing, which is often toward the end of the project. This leaves most of the completed work exposed and potentially increases the severity of the loss.
These losses aren’t just limited to claims for structural damage. Loss of income, the expense to rebuild and the cost of relocating residents during any building repairs can all add up.
- Fire
Fires can spread rapidly at active jobsites, especially when sprinklers have not yet been installed or activated, and combustible materials are being loaded into the building.
Common causes of fire include:
- Hot work
- Temporary heaters
- Arson
- Smoking
- Flammable and combustible materials
- Temporary electrical and lighting
With walls often not yet complete, void spaces can create a wind tunnel effect during a fire, intensifying the flames. Firefighters may be unable to safely enter unfinished buildings, which can impede fire containment measures.
- Theft and vandalism
Jobsites contain a wide range of valuable items, from expensive construction equipment to costly materials. Materials and equipment on site can be a target of theft and vandalism, particularly when when no one is present, such as nights and weekends.
In fact, during Memorial Day weekend in 2022, heavy equipment theft totaled over $7M in value, with jobsites being the top target.
Costs from vandalism and theft on construction sites aren't limited to replacing, cleaning or repairing equipment � there can be a direct impact to the timeline of the entire project.
Project coordinators plan what pieces of equipment need to be onsite each day. When a piece of equipment is damaged and can't be used, the project can go off plan, impacting budgets and project timelines.
What's driving property loss?
's Jason Muise, Chief Underwriting Officer, Marine, Christina Villena, Vice President, Risk Solutions, and Amy Panagiotou, Assistant Vice President, Marine talk about what's driving property loss at active jobsites and technology-based services available to policyholders to help protect buildings under construction, materials and equipment.
The impact of property loss
While builder’s risk insurance can help ease the sting of a property loss, it doesn’t always make up for the impacts contractors feel after a site incident, which can include:
Schedule delays
Supply chain issues and material scarcity can delay the arrival of replacement parts, material and equipment, resulting in overall project delays.
Increased material costs
Parts, material and equipment often cost more to replace given the scarce supply and high demand.
Additional costs for skilled workers
Workers hired to perform certain tasks or operate specific equipment will need to be rehired once materials or equipment are replaced.
Reputational damage
Large thefts, vandalism, fires and significant water damage can quickly turn into news headlines, regardless of cause or fault.
Five questions to ask contractors
Ask your customers the questions below and if you hear a no, it's time to review their jobsite security practices.
- Does the contractor use water flow and leak detection sensors?
- Does the contractor use tracking devices for specialized tools and heavy equipment?
- Has the contractor registered their heavy equipment with the National Equipment Registry?
- Does the contractor do background checks on employees?
- Does the contractor use intelligent video surveillance?
Jobsite protection solutions
Our Hanover Risk Solutions vendor partners provide technology solutions to help contractors address their safety and security needs at low or no-cost, and sometimes, reduce deductibles in the process. By taking advantage of these partnerships, our Hanover policyholders can stay on top of a wide range of property damage risks to the job site to help mitigate the loss.
Water flow and leak detection
Hanover Risk Solutions partners with several companies that offer water detection and temperature sensors to help reduce the likelihood of a small leak or temperature change becoming a multi-million-dollar loss.
Heavy equipment tracking
BlueArrow provides asset tracking devices and service for heavy equipment to help clients make sure heavy equipment is where it should be―and not where it shouldn't.
Equipment theft protection
National Equipment Registry (NER) offers policyholders registration services for their construction equipment that makes it easier to track and recover stolen equipment in the event of theft—protecting clients� ownership, productivity, and output.
Background checks
IntelliCorp Records, Inc., offers background check and employment screening products, including criminal background checks, at a discounted rate utilizing some of the best screening tools in the industry.
Site security
IntelliSee turns clients existing security cameras into proactive risk mitigation tools with one simple AI platform that overlays their current system to help catch trespassers before they steal or vandalize.
Risk Solutions partners
Browse all of our Risk Solutions Partners and see how they can benefit your customers.
Protection solutions in action
See how customers have benefited from Hanover Risk Solutions partners.
Water damage averted
Construction was well-underway at a residential development when the project manager received a message on a Saturday that water was flowing.
Just days earlier, water flow and flood detectors had been installed on the water meter and at different locations in the basement, with set days of the week and hours of the day when water should not be moving through the meter. The project manager linked his cell phone to the detectors in order to receive alerts.
After receiving the message, the project manager drove to the site and found that a garden hose attached to the water lines had become disconnected. They turned off the water before damage could occur to drywall stored in the basement. Without the alert, water could have continued to flow until the project resumed the following Monday morning.
The damage to the drywall would have required its disposal, along with the disposal of other materials stored in the basement, which could have delayed completion of the project as construction material was in short supply.
A dangerous cold front
A project manager received a low temperature alert at project site during a cold front. Temperatures had dropped below freezing, to 23 degrees.
A suspicious theft
A Customs and Border Patrol officer in Laredo, Texas was suspicious of a Case 580M backhoe about to be taken into Mexico.
Builder's risk resources
Resources for your agency
Explore our builder's risk offering
Quote, bind and issue online
TAP Sales allows you to issue builder's risk policies quickly and easily.
Resources for your customers
Beyond the technology-based services, Hanover Risk Solutions offers a range of resources, education and training to help clients address their jobsite risks.