Resiliency Preparedness and new solutions are essential as resiliency is tested. Challenges ranging from economic to atmospheric will continue to test construction firms’ resiliency in 2025. Weather extremes will continue to disrupt project timelines and more seriously put workers at risk. Extreme 11 heat is a top cause of death for workers laboring outside, and adjusting work schedules to protect against sweltering temperatures makes physical construction work take 12 36% longer. Compounding concerns are the continuing risks of unpredictable materials costs and the prospect of refinancing trillions of dollars in commercial real estate. Modular construction can help construction firms stay resilient against climate-related and economic challenges, Firms who work in lockstep with a best-in-class broker to offering safer working conditions and an entrée into develop a comprehensive claims management plan will be mega construction projects. These mega projects offer best positioned to weather the uncertainties of any type opportunities to improve efÏciencies, capacity and of business disruption. Additionally, having an effective share risk through strategic partnerships or mergers. loss mitigation strategy can help reduce the severity of the Construction megadeals (valued over $1 billion) began claim by leveraging coverages, such as Extra Expense, to 13 reduce downtime and minimize loss of profits. surging globally early in 2024. As catastrophic events, inflation and supply chain Construction firms readying themselves for the challenges constraints affect insurance costs and availability at of 2025 will get their houses in order to take advantage of required limits, rigorous risk management is critical for the good and weather the bad. An experienced broker is resiliency in 2025. key to help evaluate the adequacy of insurance programs and provide risk management resources that support Parametric insurance, which pays policyholders when business goals. weather thresholds pass a prespecified mark, is an alternative to traditional insurance programs that don’t 14 11. Time, “Extreme Heat Is Endangering America’s Workers—And Its cover losses associated with heatwaves, for example. Another alternative, project-specific insurance, is Economy,” August 3, 2023. customized for the job with coverage and costs shared 12. Bisnow, “’Adaptation Cost of Anguish’: How Extreme Heat Is Slowing Down Construction,” Sept. 5, 2023. among owners, general contractors and subcontractors. 13. MileHigh CRE, “US Construction Outlook: Megaprojects will Define Project-specific insurance helps insulate and protect the the Industry in 2024,” January, 2 2024 rest of the business if there is an incident or claim on a 14. Axios, “Increasingly costly heat waves present insurance large project. challenges,” July 16, 2024. 55