Issue
A mid-sized construction company was awarded a major interstate rehabilitation project in Virginia, involving asphalt replacement, bridge repairs, and overnight lane closures. While the client had the technical expertise, they faced mounting pressures from rising commercial vehicle insurance rates and the complexity of managing a large-scale, high-risk roadway project.
Key challenges include:
- Rising insurance premiums. Rates climbed due to inflation, labor shortages, extensive repairs, and legislative updates like Virginia Senate Bill 256.
- High-risk operating environment. Virginia’s elevated accident rate, especially involving construction vehicles, further increases insurance premiums.
- Threats to profit margins. Balancing comprehensive coverage with budget constraints became a major obstacle.
- Evolving project risks. Each project phase carried different exposures, requiring ongoing updates to safety protocols and coverage.
- Subcontractor complexity. Multiple subcontractors, each with unique insurance needs, made it difficult to prevent policy gaps or conflicts.
- Unpredictable delays. Weather and unforeseen geological conditions posed scheduling risks and potential coverage complications
Solution
With guidance from our specialized insurance advisor, the company secured a flexible policy that evolved with the project. They reinforced strong safety protocols, minimized claims, and proactively communicated risks across teams. The result? The project was completed on time and within budget, solidifying their reputation as a reliable, solutions-driven contractor.
What Made It Work:
- Safety first. Strong safety practices kept incidents and claims low.
- Smart coverage. A tailored, adjustable insurance plan protected the project from start to finish.
- Clear planning and communication. Realistic timelines, proactive planning, and coordinated subcontractor management minimized delays and confusion.
| Company Information | |
|---|---|
| Industry | Construction |
| Entity Type | Corporation |
| Ownership Structure | Private |
| Geographic Footprint | Regional |
| Number of Employees | 80 |
| Annual Revenue | $100K-$400K |
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