Insurance carrier ACE Construction this week released an advisory demonstrating the value and cost savings of implementing a continuous construction insurance program to support capital dollar improvements.
The report, A Decade of Success, is a case study of Washington, DC’s, water department, the District of Columbia Water and Sewer Authority (DC Water) and its implementation of a rolling owner-controlled insurance program (ROCIP).
The initiative supports a ten-year program designed to minimize insurance and claims management costs in the capital, which like many US cities, is still struggling with outdated water and sewage systems.
DC Water worked with the ACE USA Construction division; ESIS, ACE’s risk management services company; Albert Risk Management Consultants; Aon and MFL Consulting to create the ROCIP in an effort to reduce risks and losses, with improvements in safety through best practices and accountability for contractors, and enhanced claims management to reduce overall claim frequency and cost.
As a result of this program, DC Water has significantly improved safety, streamlined claims handling and avoided millions of dollars in insurance costs, while allowing many prime and subcontractors to obtain insurance.
“For any organization, managing a wide variety of construction projects can be daunting,” William Hazelton, ACE Construction & Environmental Division, said: “We are pleased that DC Water chose to adopt the combined expertise of ACE and ESIS for their construction coverage and high level risk management and safety strategies.
Ten years on, the program, now in its third iteration, continues to provide cost savings, remove obstacles to participation from smaller and minority firms and foster an overall culture of safety, he said.