Why Water Mitigation Programs Matter More Than Ever - Past Webinar-Why Water Mitigation Programs Matter More Than Ever

Video Transcription

Video Summary

IMUA hosted a webinar on why construction water mitigation programs are increasingly critical. Presenters Victor Niesnowski (Insight Risk Technologies) and Brad Latola (Liberty Mutual) argued that “water is the new fire” for builders risk because water losses are both high-frequency and high-severity, often occurring late in projects when values are highest. Industry data suggests water damage represents roughly 25–30% of annual North American construction property losses (and is a leading non-NATCAT cause), driven largely by burst pipes and human error. Freezing-related losses are also significant, with large winter claim totals reported.<br /><br />The session outlined a comprehensive water damage mitigation plan spanning pre-construction and active construction. Key pre-construction elements include designing wet systems (plumbing/sprinklers) away from sensitive areas, zoning/isolation capability, HVAC and condensate drainage planning, moisture-resilient material selection, and exterior envelope strategies following a hierarchy: keep bulk water out, drain what gets past cladding, and ensure assemblies can dry. Planning also covers subcontractor vetting, coordination, and quality control.<br /><br />During construction, priorities include proper site drainage, careful material delivery/storage (e.g., drywall just-in-time), rapid enclosure, moisture testing and drying before closing walls, and disciplined wet-system installation, monitoring, and end-of-day shutdown/draining procedures.<br /><br />A major focus was proactive loss mitigation using IoT leak detection, temperature/humidity monitoring, flow meters, and remote/automatic shutoff valves. Portfolio examples suggested strong ROI through avoided losses. Two claims illustrated consequences: an after-hours leak that totaled a $40M apartment project, and mold/mildew from enclosing wet framing. The presenters emphasized formal “wet works” programs and permits, spill kits, valve mapping, and clear responder responsibilities, and advised insurers to ask targeted questions and promote proactive controls.

Asset Caption

Water is the new fire and the losses prove it.

This is a comprehensive introduction to water mitigation that breaks down why water-related exposures are rapidly becoming one of the most significant drivers of property loss. As construction values and complexity continue to increase, this dynamic session sets the table with the fundamentals: what water mitigation is, why it matters now more than ever, and how different construction types and occupancies are affected.

Our two subject-matter experts walk you through real-world claims including eye-opening examples of losses occurring during final testing along with industry trends and notable natural catastrophe statistics.

You’ll learn how technology, quality assurance, and proactive program design can dramatically reduce risk.

We offer practical guidance on how to implement water mitigation and wet works expectations with insureds including what to ask for, how to evaluate programs, and how to position yourself as a best-in-class advisor.

Take advantage of this timely, high-impact session designed to elevate awareness, improve loss mitigation, and advance industry-wide excellence.

Presented by:

Victor Nieznalski, CIP, CRM, CRIS
Vice President, Builder’s Risk
Insight Risk Technologies

Bradford Lehtola, AU
Underwriting Manager, Specialty Inland Marine
Liberty Mutual Insurance

Keywords

construction water mitigation

builders risk insurance

water damage losses

burst pipes

freezing-related claims

IoT leak detection

automatic shutoff valves

flow meters monitoring

moisture testing and drying

building envelope water management

wet works permit program