The shift towards increased prefabrication and modularization is vital to improving the construction industry’s lacklustre productivity growth. The potential for tighter cost controls, increased onsite efficiency and safety, higher quality and reduced waste means a more streamlined project from start to finish.
At the same time, offsite prefabrication and modularization brings new risk considerations affecting traditional contractor insurance coverage.
Consider Commercial General Liability (CGL) policies, for example. Megan George and Aaron Klein of U.S. law firm Stites & Harbison PLLC suggest a modular build, “can protect against complex CGL coverage, resulting in lower premiums and less headaches for contractors.”
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