Clients in the construction industry face a number of emerging risks which are forcing businesses to face up to a new reality, an expert has said.
As one of the most important industries in Australia, construction plays a key part in many brokers’ businesses and Angela Vella, practice leader of construction at Arthur J.
Gallagher, said that two emerging risks stand out for construction clients.
“Some of the top, key risks and emerging risks for clients tend to focus around economic liquidity and technology,” Vella told Insurance Business.“Clients are finding themselves having to adapt rather quickly to what is a new reality for a lot of organisations.”
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Vella noted that, from a technology perspective, all industries are being impacted by cyber threats - and construction is no different.
As technology and economic liquidity become top of mind for construction clients, Vella added that brokers play an increasingly important role.
“While a lot of these are outside of a broker’s control, we can certainly assist by helping clients understand what those risks mean for their business,” Vella continued. “Helping them with things like managing cash flow - so from a cost perspective the impact those risks can have a on a business - is really important.”
Vella said that, to help clients appreciate the risks that their businesses face, brokers can look to use risk profiling exercises to highlight potential impacts of traditional and emerging risks.
While risks will vary from client to client, risk profiling will give brokers an opportunity to explain new risks to clients and the balance sheet exposure of construction clients.
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