From Risk to Profit Benchmarking and Claims Studies

Frequency = reported claims Severity = CNA dollars spent Residential Projects: Claims by Problem Area (2010 - 2019)

The worst problem areas for residential project types were interior construction, which was first in claims count (20.8%) and second in dollars spent percentages (19.7%), with building superstructure second in claims count (17.0%) and first in dollars spent percentages (24.2%).

25%

20%

15%

10%

5%

0%

Foundations/ Substructure

Building Superstructure

Building Exterior Closure

Site Preparation

Interior Construction

Plumbing/ HVAC/Fire Protection

Site improvements and site preparation for highway projects were big problem areas, with site improvements accounting for 44.1% of the claims count and 22.1% of the dollars spent and site preparation issues accounting for 29.6% of the claims count and 66.8% of the dollars spent.

Highway Projects: Claims by Problem Area (2010 - 2019)

70%

60%

0% 10% 20% 30% 40% 50%

Foundations/ Substructure

Site Preparation Construction Stakeout

Site Improvements

Site Utilities

HVAC systems represented the highest claims count (24.9%) and dollars spent percentages for schools/colleges projects (27.6%). Problems with high humidity levels due to faulty design and the potential for mold/mildew issues may have been a contributing factor to the high frequency and severity of HVAC claims on school projects.

Schools/Colleges Projects: Claims by Problem Area (2010 - 2019)

30%

25%

20%

15%

10%

5%

0%

Electrical

Building Superstructure

Site Improvements

Building Exterior Closure

Interior Construction

Plumbing/ HVAC/Fire Protection

20 • From Risk to Profit - Benchmarking and Claims Studies

Victor

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