Disclaimer* Please note that the content expressed in this article is fictional. All predictions are based on the author’s opinions and do not represent the ideas and/or predictions of CR Solutions.

2020 Construction Industry: Risk Management Environment

The year is 2020. Wrap-up insurance programs are flourishing in both the private and public sector as a result of breakthrough technological advancements in the construction industry. These new age wrap-up programs have surpassed their predecessors in productivity, efficiency and cost savings, making the administration process sleek and effort-free.

In 2010, wrap-ups were commonplace for projects with a construction value of more than $100 million. Now, wrap-ups cover almost every construction project in the United States. Contractors hold minimal workers compensation and general liability coverage which means they hardly ever rely on their own coverage. More importantly, developers do not need to track offsite certificates of insurance because of the new wrap-up hard hat technology.

Even construction as minor as a three bedroom house is covered by a wrap-up (called a mini-wrap). The coverage for the mini-wrap can be purchased by the developer on the Internet- similar to purchasing car insurance online.  What is more significant is the fact that the decision about coverage (type of coverage and limit requirements) for each project lies solely with the Developer.

The Project

Shortly after its formation in 1998, Google exploded on the scene and completely changed the course of Internet browsing for users. By 2015, Google became the largest company in the world because its search function technology surpassed anything else available on the market. It is no wonder that as 2020 approached Google had far outgrown its Menlo Park, California location. The company sought to expand their enterprise and make an iconic impact by constructing the tallest building known to mankind. Standing tall at 3,125 feet, Google’s new headquarters dominated the ten plus year record held by the Burj Khalifa (Burj Dubai) in Dubai at 2,717 feet. As with most large construction projects in 2010, Google purchased a wrap-up program to cover the construction exposures of their headquarters.

March 5th 2020, San Jose, California – New Google Headquarters (pre-bid)

Contractors are lining up for their chance to be a part of history and work on the tallest structure in the world. No insurance costs are included in their bids. The aged process of calculating insurance deductions has been transformed with the new risk management environment. All contractor insurance requirements are waived, and a perfectly competitive bidding process has been created.

In the year 2010, EMR was the major indicator of a safe contractor.  This ratio only included workers compensation claims information. SAFE, which is the updated version of EMR, also includes general liability loss history for each contractor.  Much like EMR, a SAFE rating of 1 signifies a safe contractor.  The SAFE ratio is taken into consideration for all bids on wrap-up jobs. Safety on the project site has never been more important.  Unsafe contractors have steadily gone under; they simply cannot compete with a highly rated SAFE contractor.

Also, enrollment into a wrap-up is a breeze.  Instead of completing enrollment forms, contractors have wrap-up identification numbers. These numbers are included in all bids. Once a bid is finalized, the identification number along with the awarded contract value is sent to the insurance company; then, the contractor is automatically enrolled into the wrap-up. Within minutes of the bid being accepted, certificates of insurance and wrap-up policies are automatically generated and emailed to the enrolled contractor.

September 9th 2020, San Jose, California – New Google Headquarters (construction)

Construction on the tallest structure in the world is much underway.  After five months of construction, twenty floors have already been erected. Prefabrication methods have cut the construction schedule in more than half from earlier days.

The wrap-up hard hat has been invented. This is not your father’s hard hat.  Not only does it protect the employees from falling debris, but it also contains a personalized computer chip which stores vital information ranging from an employee’s pulse rate to the exact location where the employee is working and the length of time the employee has been on the project site. This eliminates the need for wrap-up payroll reporting. In the year 2010, wrap-up participants were required to complete monthly payroll reports for their work on wrap-up jobs.  At this time, every second an employee works at the project site is recorded and transmitted electronically to the insurance carrier.  Along with the payroll hours, the insurance carrier is able to see the contractor’s workers compensation code and pay rates. The digital payroll reports are used to compute the contractor’s SAFE rate, making premium calculations almost instantaneous.

Moreover, the wrap-up hard hat can detect any recent drug or alcohol use from a single drop of sweat. The slightest detection of substance or alcohol abuse triggers a prompt response from the project manager on site.

Also available for use on the project site is the Wrap Fence. Based on the invisible fence technology for pets, the Wrap Fence creates an invisible barrier around the project site.  No one can enter the project’s boundaries without a hard hat which has been programmed for the specific project. This makes it impossible for contractors to file a claim for an accident away from the project site. It also means that a contractor who is not enrolled in the wrap-up cannot enter the project site.  The invisible fence technology has created an optimal level of project site security.

Wrap-Up Hardhat Employee Monitoring System

Google Headquarters (September, 9th 2020)

September 8th 2023, San Jose, California – New Google Headquarters (completion)

After three years of construction, the tallest manmade structure in the world is now complete.  Recent safety innovations such as the wrap-up hard hat, hover board fall protection, and other advancements have led to a nearly injury free project site.  At Google’s headquarters, there were only eight claims (six workers compensation claims and two general liability claims). Most accidents were very minor. The construction industry of 2020 is booming.  New risk management techniques, advanced construction technology, and riveting innovation have brought us into the golden age of development; America looks to rebuild.