It is the megatrend of the 21st century: digitalization
Digital transformation is rapidly changing the way we live, work, and learn. These changes hold enormous potential for improving quality of life and securing prosperity.
The construction industry is also facing profound changes. Digitalization means that construction processes can be made more efficient.
Digitalization in the construction industry means digital tools, process automation, and digital project communication. The article on Digitalization by the German Construction Industry Association (zdb.de) also provides interesting insights .
What does this mean for the professional and business liability insurance of engineers, architects, construction companies and “construction professionals”?
The digitalization of the construction industry is of great importance for professional indemnity insurers. We take a look ahead,
particularly with regard to the following points:
- Risk management and prevention: The use of digital technologies such as BIM, CAD, and IoT can help identify and resolve potential errors and problems in construction projects early. This can help reduce the risk of construction errors and liability claims, which could have a positive impact on professional indemnity insurance premiums.
- Increased demands and responsibilities: Digitalization is enabling construction professionals and companies to assume greater responsibility, as they often assume the responsibility for integrating and utilizing complex technologies in construction projects. This could lead to increased demands from clients and thus to an increase in liability claims. Meeting these new challenges requires well-trained specialists. Looking ahead to the construction industry’s job market , knowledge and qualifications in data analysis and interpretation, robotics, sensor technology, IT, AI, collaboration, and communication are likely to become increasingly important in construction professions. Riverstate can provide support in this area. Riverstate – Recruiting for Engineering and Construction.
- Protection against cyber risks: With the increase in digital processes and data in the construction industry, the risk of cyber attacks and data loss also increases. Not only construction companies, but all players in the construction industry should therefore protect themselves against these risks by expanding their professional indemnity insurance to include cyber risk coverage.
- Use of new technologies and AI on construction sites: Drones are now part of everyday life on construction sites. A short time later, images captured by artificial intelligence using the drone’s camera appear on the site manager’s tablet: A worker isn’t wearing his helmet. Construction vehicles are underutilized . There are certainly more examples. The possible applications of intelligent drones are diverse. They can help improve the management of planning work, construction sites, and buildings in all phases. The new terms and conditions of professional indemnity insurers include liability claims arising from the use of drones. German law requires insurance for all drones, regardless of whether they are used commercially or privately, and regardless of size and weight. The newly created EU Drone Regulation has created uniform regulations for the operation of unmanned aerial vehicles. Drones are classified by the manufacturer into risk classes (C0 to C4) based on defined criteria. The risk class determines the operating category in which the multicopter may be flown. We would be happy to provide you with further details.
- Adjusting insurance terms and conditions and coverage: Insurers are increasingly adapting their insurance terms and conditions and policies to the changing risks in the digital construction industry. We recommend that policyholders who do not have automatic adjustments or upgrades included in their contracts regularly check for any improvements to their current insurance terms and conditions. Therefore, it is always advisable to have regular discussions with your insurance broker.
- Development of new insurance products: We believe that digitalization creates opportunities for the development of new insurance products tailored to the needs and challenges of digital construction projects. Overall, digitalization is leading to the adaptation and further development of professional indemnity insurance and public liability insurance to meet the new risks and requirements while simultaneously providing adequate coverage for “construction professionals.” The same applies to the co-insurance of new professional profiles and qualifications in the construction industry, such as the role of sustainability expert.
We are facing exciting developments in this area, and we are constantly keeping an eye on tariffs and trends.
SABINE LANG-NEUGEBAUER
Office Manager, Customer Management, VMI | Insurance Broker of Engineers GmbH
The author
Sabine began her career in the insurance industry working in marketing, providing content for various advertising campaigns. After completing her traditional training as an insurance clerk, she spent several years as a sales manager with HR responsibility at a renowned insurance broker. During this time, she completed a distance learning course in project management and managed various public relations projects for her former employer.
Since May 2022, Sabine has been the office manager of the newly founded insurance broker der Ingenieure GmbH, a start-up of VDI GmbH and the Martens and Prahl Group. More information is available at: www.vm-ingenieure.de
