5 Lessons from the Field: Building Smarter Risk Programs

By TY JONES

After years of watching projects succeed – and others struggle – I’ve noticed a few patterns that separate the two.

Building better insurance and risk management programs for construction projects of all sizes involves a simple common thread: successful projects manage risk with intention, not reaction.

Here are five takeaways that stand out:

1. Start early. Risk planning belongs in preconstruction, not post-award.
2. Layer coverage strategically. No single policy is enough – builder’s risk, commercial general liability, professional liability, surety and alternative security must work together.
3. Vet capacity and clarity. Choose partners who can meet insurance and bonding requirements, and make sure contracts align with those commitments.
4. Adapt as the project evolves. Risks change from design to operations; your insurance program should, too.
5. Acknowledge retained risk. Even the best-structured programs leave some exposure with the owner or contractor. Recognize it, plan for it and manage it deliberately.                                                                                                                                                                                                                                                                        The goal isn’t to eliminate uncertainty; it’s to make it predictable and manageable. That’s what separates good projects from great ones.
   Ty Jones is a construction risk and surety specialist at McGriff.