Recent years have brought a rise in severe spring storms that pack stronger winds, increased hail and torrential rainfall. These destructive forces contributed to at least two dozen billion-dollar disasters in 2024 and a record number of such disasters in 2023. Flash floods turned construction sites into lakes, hailstorms pummeled equipment and materials, and spring winds, once considered manageable, now have the potential to cause considerable damage.
The impact of these storms can be devastating to construction projects. Beyond the immediate damage to property and equipment, they can lead to costly delays, worker injuries and even project shutdowns. With the added risk of repair and replacement costs having risen in recent years, commercial contractors face a confluence of risks.
The good news? By taking proactive steps, you can build resilience into your jobsites. With thorough preparation and the right financial protection, you can keep your project timelines on track and on budget.
Strategies to Safeguard Your Construction Sites
Be aware of the growing threat posed by severe convective storms (SCS). Heavy rain, damaging winds, hail and lightning can cause floods that inundate jobsites, damage exposed materials and equipment, disrupt power supplies critical for construction activities and lead to lost revenue.
The following steps can can help you safeguard your projects — and your business.
- Establish a risk mitigation plan — Consider hiring a company to conduct a topographic survey (also referred to as a land survey or ground survey) to identify various elevation points. This can bring to light concerns with steep grades, existing human-made structures and other problematic conditions such as areas prone to flooding. Do this before construction begins to ensure the proposed project designs work in all conditions.
- Work safely in trenches — Trench collapses or cave-ins pose significant risk to workers’ lives. Any trench 5 feet deep or greater requires a protective system. The Occupational Safety and Health Administration (OSHA) requires you to inspect trenches and protective systems daily and as conditions change. That’s especially important following severe weather that may have caused erosion and changed soil conditions.
- Secure outdoor equipment and materials — High winds can turn loose materials into dangerous projectiles. Store equipment and materials inside a secure building whenever possible. Otherwise use straps, ropes, cables, chains or other means to securely anchor them when severe weather approaches.
- Move materials to high ground — Suppliers will drop equipment and materials anywhere on a jobsite. Sentry Insurance handled a claim involving $500,000 worth of equipment left in a low-lying area that filled with water. If you must store equipment and materials outside, have your project manager move them to high ground to avoid potential flooding from heavy rains.
- Enclose openings — If you’re building a structure, enclose openings such as roofs, windows and doors as quickly as possible to prevent damage from wind and rain. If there’s no time, cover openings where practical with tarps, and safely secure them.
- Prepare for lightning strikes — Lightning can damage equipment and spark fires. Clear brush, grass and other debris around your project site to reduce fire hazards. Install lightning protection systems on structures.
- Don’t let water win — Ensure proper drainage is in place to handle heavy downpours. Standing water can create safety hazards, damage building materials and cause delays.
- It’s spring; revisit those safety reminders — Aside from preparing for severe weather, remember to revisit your safety training as projects ramp up. Train subcontractors, too.
Invest in Resilience: Build Smart, Save Money
When you implement additional risk mitigation strategies, consider using hail, wind and fire-resistant materials in your construction. This can help reduce overall risk, which may lead to lower insurance costs for you and your customers. It’s an up-front investment that pays long-term dividends.
Protect Your People
Your workers are your most valuable asset. Never more so than today in a tight labor market. Prioritize their safety:
- Form a response plan — Develop a comprehensive emergency response plan outlining procedures for various severe weather scenarios. This plan should include designated evacuation routes, on-site safe havens and clear communication protocols to ensure everyone knows what to do before severe weather strikes. Consider text alert systems, call trees or loudspeaker systems.
- Train your team — To ensure a swift response, talk about your plan at the onset of a project and during daily safety briefings. If possible, conduct occasional drills with your on-site crews. This will help them understand your plan and better equip them to carry it out.
Ensure You’re Financially Covered When Severe Weather Strikes
Don’t get caught short. Review your insurance coverages and limits before you need to file a claim. Having an ongoing dialogue with your agent and insurer is crucial to ensuring your business recovers if severe weather strikes.
- Factor in higher costs — Replacement costs for damaged buildings and equipment have gone up. Construction input costs alone remain 39% higher than five years ago. Discuss replacement value coverage limits with your insurer to avoid significant out-of-pocket expenses. And keep an up-to-date inventory of materials and equipment. That will help expedite your insurance claim.
- Consider business interruption insurance — This coverage helps you recover lost profits and cover ongoing expenses if a weather event disrupts your project. Many contractors are extending this coverage from six months to a year or more due
to delays in replacing materials or equipment. The cause is often demand surges for materials following a severe weather event. Extra expense coverage can help cover the cost of unforeseen expenses required to get your project back up and running. - Protect your business further — Additional coverages can be added to your policy, such as utility service interruption or contingent business income if a supplier is affected by severe weather. As a contractor, you may have additional industry-specific coverages that have been affected by inflation in recent years:
- Installation floater coverage: Insures specific, high-value property and materials that you plan to install against damage when in transit or at a worksite prior to being installed.
- Builder’s risk coverage: Helps cover damage to property during the actual construction process — think of a storm damaging a project halfway through completion, a scenario playing out across the country. Think of prefabbed walls, materials, machinery, scaffolding and storage containers.
- Contractor’s equipment insurance: Like materials, your equipment costs more today to repair or replace. Contractor’s equipment insurance helps protect equipment and tools at jobsites, during transit or in storage. With higher equipment values, you’ll need updated valuations to stay adequately protected. An inflation guard provision can help with that, too.
- Update your inventory — Be sure to add coverage for any new equipment purchased during a project. In the beehive of activity, it’s easy to forget.
- Make sure subcontractors are insured properly — This is especially important on the liability side.
Should your project sustain a covered loss, you’ll be glad to have the appropriate coverages and limits to help get your project back on track quickly and with little impact to your bottom line.
Plan How You’ll Get Your Project Back on Track
Spring storms can disrupt your construction schedule, but a solid business continuity plan can get you back on track quickly. Here’s a three-step approach:
- Identify critical functions — Conduct a business impact analysis to pinpoint the essential processes that keep your project moving. This includes your people, payroll, inventory and suppliers.
- Develop recovery strategies — For each critical function, create a detailed plan for swift recovery. This could involve securing backup suppliers for materials in case of delays or having a stock of essential replacement parts for key equipment to minimize downtime. It can also include having a roster of backup subcontractors should you need to rebuild quickly.
- Communication is key — Establish clear communication protocols for everyone involved. This includes employees, clients and subcontractors. During a disaster, clear communication minimizes confusion and ensures everyone’s aware of the situation and your recovery plan.
Don’t Leave Your Success to Chance
Spring storms can be unpredictable, but by following these tips, you’ll take a big step toward safeguarding your sites, crews and profitability.
Remember, this is just a starting point. Talk to your insurance provider and other construction safety experts to build a comprehensive preparedness plan specific to your project needs.
With proper planning and proactive measures, such as updating your insurance coverages and valuations, you can minimize disruptions, keep your workers safe and ensure your projects stay on track — even when spring delivers unwanted challenges.