How to Lower Construction Insurance Costs with Video Monitoring
Reducing construction insurance costs is easier with the help of construction video monitoring. By keeping an eye on job sites, you can improve safety, prevent theft, and catch potential issues early. These measures can lead to lower construction insurance premiums, as insurers see a reduced risk. It’s a smart way to protect your site and save money at the same time.
You likely know your homeowner’s insurance gives you a discount if you install a security system. Why? Insurance underwriters know that criminals are less likely to target homes with security systems in place — meaning less risk.
The same thinking applies to construction insurance for job sites. In this case, however, video monitoring can be even more beneficial than an alarmed security system — helping to lower the risk of various insurance payouts.
As a result, adding monitored construction site security cameras can help you save money on insurance premiums. That includes general liability, worker’s compensation, tools and equipment insurance, and builder’s insurance. On top of lowering premiums, you’ll also save on deductibles, lost work time, overtime, and more.
How does live video monitoring work on construction sites?
Live video monitoring on construction sites uses advanced security cameras that are actively watched by trained professionals. These cameras are set up in key spots around the site to give a full view of the area and catch any potential issues in real-time.
Unlike traditional cameras that just record footage, live monitoring systems have agents who can quickly assess threats, respond to suspicious activity, and contact law enforcement or site managers if needed. This hands-on approach helps prevent theft, vandalism, unauthorized access, and other security problems. It also keeps workers safer by spotting hazardous situations and ensuring safety protocols are followed.
Using AI-powered remote video monitoring systems like Deep Sentinel can lower costs without sacrificing protection. These systems use cutting-edge AI and machine learning to identify and differentiate between human activity, animals, and other objects, so you can be sure that real threats are identified quickly.
Additionally, Deep Sentinel’s live agents are available 24/7 to review footage in real-time and respond to any potential incidents or alarms immediately. This level of proactive monitoring helps prevent potential loss and liability issues before they even occur.
Why does live video monitoring lower construction insurance costs?
Here are three ways monitored cameras help keep worksites safe, which can bring down insurance premiums.
#1: Reduces worksite theft
According to construction theft statistics, a construction site is much more likely to experience theft than any other risk or threat, including vandalism, fire damage, or natural disaster.
Construction sites house plenty of high-value, easy-to-fence items. A set of fence cutters is all thieves often need to access a site after hours.
Though unmonitored cameras might film them in the act, that’s where the benefit ends. With no one watching the feed, there is less time to take action. Criminals get away with the goods, and insurance companies are left to pick up the bill. The National Equipment Register puts the value of stolen equipment every year between $300 million (residential sites) and $1 billion (commercial sites).
How video monitoring can help: Visible cameras can deter thieves, but monitored video goes further. Real-time monitoring lets agents spot and respond to suspicious activity instantly, alerting authorities if needed. This fast response greatly lowers the chance of theft on your worksite.
As a result, video monitoring can reduce your construction insurance premiums for several types of coverage, including overall builder’s insurance, auto insurance, and tools and equipment insurance. It can also drive down what you pay before your deductible kicks in. On top of that, fewer thefts mean less lost work time.
“A building site without construction surveillance is like a house without locks on the doors: not everyone will test the doorknob, but those looking to swipe some valuables will welcome the lack of resistance.” — Insurance company Northbridge
#2: Reduces worksite injuries
If you’re wondering why worker’s comp and employer liability premiums keep rising, the following statistics shed some light.
Construction is one of the most dangerous industries, consistently recording the highest rate of workplace fatalities. In 2021, nearly 1 in 5 workplace deaths occurred in the construction industry.
In the private construction industry, there were about 31.5 falls, slips, or trips per 10,000 full-time workers each year during 2021–2022 that caused workers to miss at least a day of work. For comparison, the rate across all private industries was 22.6.
Investing in safety for your workers doesn’t just protect their well-being — it can also save you money on insurance premiums.
How video monitoring can help: Monitored cameras help spot unsafe conditions before they become a liability. If you check the footage yourself, you’ll notice unsafe work practices or areas before it’s too late. Plus, workers who know someone is watching may be more likely to follow safety protocols.
All of this can help drive down the number of accidents on your site, reducing your overall risk. That means your premiums for worker’s comp and liability will be lower. It can also reduce how often you’re sued and what you’re paying out in deductibles. You’ll also be less likely to have business interruptions or pay out overtime to cover for injured employees.
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#3: Reduces worker’s comp fraud
Slips and falls are among the most common types of worksite injuries in construction.
Unfortunately, this also makes them more vulnerable to individuals attempting to exploit the system. Fraudulent worker’s comp claims can cost companies thousands (or even millions) of dollars in unnecessary payouts.
According to The Hartford insurance underwriting company, worker’s comp fraud adds up to $30 billion annually.
How video monitoring can help: Worker’s comp insurers know that video monitoring leads to video evidence. Workers know that, too. Monitored video systems not only catch fraudsters in the act but also deter them from committing fraud in the first place. And, in the event of a claim, you have footage to back up your side of the story.
Video monitoring can help bring insurance costs under control.
With a video monitoring solution, you can begin to control the costs associated with theft, injuries, and worker’s comp fraud.
In addition to those benefits, your insurer will likely reward you for implementing new or improved security measures. Installing security cameras on your construction sites could result in 5% to 20% discounts on construction insurance rates.
These discounts depend on many variables including carrier, lot size, area, and crime risk, but the point is a video monitoring system could pay for itself and then some.
If you are considering a video monitoring solution, speak with your insurance agent to see how it can affect your insurance costs.
What other security measures help lower insurance premiums?
Your builder’s risk insurance policy likely requires you to have a “reasonable level of security” on your site. Precisely what that means can vary by location.
For example, if you’re in a high-crime area or your site has already been plagued by crime, you might need more security than a site in a lower-crime area.
Some best practices for construction site security and safety include:
- Surrounding easier-to-steal small equipment with larger, harder-to-move equipment
- Installing warning signs, security fencing, and lighting
- Marking tools to make them easier to trace if stolen
- Promoting worksite safety awareness and education
- Offering PPE and ensuring employees use it correctly
- Maintaining a clean, organized site that is clear of debris
- Inspecting the site regularly for safety hazards
- Inspecting and maintaining vehicles
On top of the above, video monitoring is a necessity. However, not all video monitoring solutions are created equal.
The best video monitoring for construction sites
Most security camera models simply record. That means when a crime takes place, you’ll be left with the footage after the fact. That footage could potentially help law enforcement catch the crooks, but it doesn’t fully deter them from targeting your site in the first place.
Newer, advanced security camera monitoring solutions have built-in artificial intelligence that watches over your job site. Deep Sentinel’s AI security camera technology dismisses non-threats like stray animals but notifies a live guard of suspicious behavior within seconds. The guard then assesses the situation, engages with the suspect via 2-way audio built into the camera, and notifies the police of a verified crime if necessary.
That’s the advanced video monitoring solution that Deep Sentinel offers. Deep Sentinel is the only provider that offers zero false alarms and prevention before the crime occurs.
Want better construction site security? Call Deep Sentinel at 833.692.2508.
Need a Solution that Prevents Crime?
Deep Sentinel is the only security technology that delivers the experience of a personal guard on every customer’s home and business. Visit deepsentinel.com/business or call 833-983-6006