Direct and Indirect Risk
In the construction world, every construction company has to be concerned about direct and indirect risk. Direct risk is the events and activities that are directly attributed to your company and over which you have some level of control. There are two types of indirect risk; subcontractor and pedestrian indirect risk. When we talk to clients, we are very careful to make sure that all three types of risk are understood completely.
Direct risk involves the employees who work for the company, and all of the equipment and materials that the company owns and rents. Each type of direct risk has its own specifics, and we spent time understanding those risks to put together protection that will keep your company in business, and give your employees the protection they need to feel safe.
Indirect Risk – Subcontractors
While you have no direct control over what your subcontractors do, you are still responsible if they cause any damage or injuries. Indirect risk is the sole reason why we work hard to convince our customers of the importance of things like safety plans and comprehensive subcontractor agreements.
When you get a subcontractor to sign a comprehensive contract and make it mandatory for your subcontractors to submit their safety plans to you, then this offers a certain amount of protection from subcontractor negligence. But we always recommend an few extra layers of protection, just in case something happens that could wind up your responsibility.
Indirect Risk – Pedestrians
If a piece of your equipment malfunctions and injures a pedestrian, then your company could be in for a serious financial shock if it is not protected. While pedestrians are indirect risks, there are plenty of direct actions you can take to prevent pedestrian accidents.
It is important to fence off the work area beyond legal limits to protect pedestrians from falling materials or machinery. You want to make sure that the proper piece of equipment is used on your site at all times. If a crane is only rated for three tons and your workers try to move five tons with it, then the resulting pedestrian injuries could be catastrophic to your company. You should also develop safety measures that include not swinging cranes out over the pedestrian boundary, making sure to keep sidewalks and roads clear at all times, and never allow materials to be staged in areas outside of the construction site.
What You Can Do
One of the activities we suggest to every client is to review their safety policies and subcontractor agreements on a regular basis. If a project calls for a larger amount of insurance than normal, then talk to one of our experts to make sure that you always have the insurance you need. You should also have a policy with subcontractors that shuts out subcontractors with several safety violations from getting work from your company.
Our team of risk experts are always ready to help protect your company from direct and indirect risks. When you own a construction company, you deal with a higher risk factor than most other companies. Instead of exposing yourself to unnecessary risk, you need to let us show you how to protect yourself and keep your company in business.