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Building Resilience and the Interconnectivity of Risk

Posted on November 29, 2021February 6, 2025 by Shield Insurance Agency

Source: BusinessInsurance.com Building resilience | Building Resilience | Business Insurance

Businesses large and small have ongoing challenges – from labor shortages to social inflation to environmental, social, and governance issues, and these risks are interconnected. These risks range from workplace illnesses and injuries to greater liability exposures to reputational damage and litigation over business practices. In this video series from Liberty Mutual Global Risk Solutions, David Perez offers insights to help risk professionals cope with these interconnected risks and improve their organization’s resilience.

Building Resilience in Labor Shortages

There are many factors behind the current labor shortages, from the pandemic to workers’ shifting attitudes on remote working, but all of these factors are combined to create risks for businesses. The impact of labor shortages goes beyond the ability to serve customers. Filling roles with new or inexperienced employees increases the need for training and an emphasis on safety in the workplace. In addition to retaining talent, businesses also should focus on building safety cultures, advises David Perez of Liberty Mutual Global Risk Solutions in this Business Insurance video.

Impact of Social Inflation

While not new, social inflation has become a major concern today for businesses and their liability insurers. A long-term trend, social inflation refers to shifting perspectives among plaintiffs and jurors, who are more willing today to seek or award outsize judgments. Higher jury awards and settlements mean increased costs and greater liability exposures for businesses. Learn how to mitigate the impact of social inflation in this video from Liberty Mutual Global Risk Solutions.

Environmental, Social, and Governance

Customers, investors and regulators are placing a growing importance on businesses’ environmental, social and governance programs. Business practices are facing more scrutiny and, increasingly, litigation. As businesses transition their operations to reflect ESG values, there could be risks. Learn more about how companies can retain customer confidence and protect their reputations in this video from Liberty Mutual Global Risk Solutions.

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Small projects, big risks: 6 challenges for small and midsize contractors in the COVID-19 era

Contractors may assume that smaller projects equate to smaller problems — but that’s not always the case. Construction jobs of all sizes share many of the same logistical and legal risks — and those risks have become even more complex in the wake of the COVID-19 pandemic.

Supply chain issues, labor shortages, and payment delays now define the construction landscape — and many small and midsize contractors don’t have the financial cushion to stay afloat if something goes awry. A series of tough jobs could lead to significant losses for contractors who are unprepared. Here are six risk areas that construction companies should address to position themselves for success in the current COVID-19 era.

1. Distribution issues

As contractors are aware, the COVID-19 pandemic temporarily shut down manufacturers and suppliers across the nation, leading to unprecedented distribution challenges.

As of July 2021, the cost of construction materials is up 20 percent, with a 3.2 percent increase just in the last month. For some common materials, like softwood lumber, prices have increased by more than 125 percent in the last year.