PHILADELPHIA, March 31, 2016 /PRNewswire/ -- As construction contractors incorporate project design and digital technologies into their businesses, Chubb has issued an advisory to help them understand and manage emerging professional liability and privacy and network security exposures.
Co-authored by two Chubb executives, the advisory, "New Business Models, Technology Raise Professional Liability Risks for Contractors," explores various project delivery models, including combining architectural, design and contractor services in one contract, and new technologies that are being embraced throughout the construction industry. As contractors use these new models and technologies, they face new professional liability exposures linked to design. Additionally, they can encounter cyber exposures arising from modeling software and the confidential project, customer and employee data they store on their own or remote networks or with a cloud provider.
"Historically, contractors' risk has primarily been limited to standard commercial general liability, auto liability, workers compensation and builders' risk," said Diana Eichfeld, Assistant Vice President, Chubb Environmental, who co-authored the advisory with Matthew Prevost, Vice President, Chubb Financial Lines. "Today, the risks are becoming more pervasive as contractors take on more aspects of project design. Sophisticated software tools are playing a greater role in daily operations as contractors handle and store a wider range of confidential and personal information -- from valuable building plans to financial and employee data. As a result, contractors need to recognize the existing and evolving professional liability and cyber risks and take the necessary steps to adopt risk management strategies and obtain the appropriate insurance coverage to match the evolving exposures."
The advisory, which can be read here, covers the following facets of a contractor's evolving role:
Chubb is the world's largest publicly traded property and casualty insurer. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is distinguished by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, underwriting excellence, superior claims handling expertise and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 30,000 people worldwide.