The Blind Side of Contractors Risk Management
Posted by Robert Phelan on Mon, Nov 30, 2009 @ 08:05 AM
What contractors can learn about risk from Lawrence Taylor
Last week the hit movie "Blind Side" opened. It chronicles the life of a disadvantaged young man from homelessness to college football stardom. Based on the book by Michael Lewis, it explains how the modern football offense evolved. One man caused this evolution. His name was Lawrence Taylor. If Lawrence Taylor hadn't set out to destroy quarterbacks, the left tackle on the offensive line would never have become the star character in a movie.lawrence taylor tackle
When Lawrence Taylor played linebacker for the New York Giants in the 1980's, he quickly became the most feared player on the field. Since most quarterbacks were right-handed, Taylor's coach Bill Parcells had him attack from the quarterback's left side or "blind side" as it became known. In Taylor's words, "It wasn't really called the blind side when I came into the league. It was called the right side. It became the blind side after I started knocking people's heads off."
Why am I writing a football story on a blog focused on business risk? Simple. Every business has a blind side, particularly construction companies. The blind side of a construction company is the place where all the unknown or unanticipated risks lie. Here are some examples:
• Construction companies sign contracts where risk is transferred upstream and downstream, from one party to another. The complexity of modern-day insurance language makes compliance a challenge even for the most diligent companies. What if your coverage doesn't respond as it should? That's your blind side.
• You've chosen an insurance company to protect your business. You think they're financially stable. You have a multimillion dollar claim. They file for bankruptcy shortly after you file your claim. That's your blind side.
• You think the $5 million umbrella you've always carried is plenty of coverage. Then a subcontractor's employee falls off a roof and becomes a quadriplegic. You're sued for $10 million because you didn't provide the proper safety on the jobsite. That's your blind side.
• In the clinic where your injured workers go for treatment, the doctor doesn't understand Return to Work. You have three claims in one year that end up costing much more than they should. As a result, your experience mod goes to 1.25. You then lose a $10 million dollar job that you couldn't bid because your mod was too high. That's your blind side.
The modern football offense evolved to where the left tackle became a critical position protecting the quarterback, the team's most valuable asset. Your business needs someone to protect its blind side as well. Have you chosen an insurance agent whose focus is solely on insurance or a Risk Advisor who can protect your blind side? Discover the difference by visiting www.constructionriskadvisors.com.