A classic condition in a contract works policy is to place a security guard on the site, is this the only choice? No!
But…there are conditions that must be met in order for the insurance company to agree to deviate from the policy. See a creative example from a site that is divided into several sub-areas, where the permanent guard was actually replaced by three parallel security circles:
The first – Remote Monitoring Center: A 24/7 monitoring center is connected to cameras on-site, with continuous viewing, not just on demand. Video analytics cameras with spatial detection capabilities and PTZ cameras (with movement and zoom capabilities) are installed. The monitoring center has designated personnel familiar with the project area. Additionally, alarm systems, lighting systems, and remote announcement capabilities are installed on-site.
As the project progresses, the camera and alarm systems are adjusted to the site’s conditions. The monitoring center is connected to the site via two methods (cellular and Internet GPRS). Initially, there will be only a cellular connection, and after the site is connected to the electrical grid (within a few weeks from the start of organizational works), an internet connection will be added. Furthermore, the site will have an emergency generator and/or backup batteries for the camera and alarm systems.
The Second – Neighborhood Patrol: A dedicated patrol officer is present in the neighborhood, communicating with the monitoring center and site security systems. The patrol officer moves between the insured’s areas and the sales office from 6 PM to 6 AM, i.e., from site closure until reopening. The officer moves around with an off-road vehicle and a guard dog. They conduct regular patrols throughout the neighborhood. The officer maintains direct contact with the monitoring center, which also tracks their movements via the camera system as needed during site patrols, ensuring quick detection if the patrol officer is compromised.
The Third – Police Station Proximity: There is an Israeli police station approximately 1 km from the new neighborhood. The insured parties fully cooperate with the police, conducting a pilot for enhanced security at construction sites. This arrangement ensures a quick police response during incidents and increased patrols in the neighborhood.
Based on the above data, we are impressed that the site security is planned to be much more effective than placing a physical guard in each area (as stipulated in the insurance policy conditions and commonly noted in surveys as the default option).
Other construction companies are adopting this approach, with some even forming organic security teams. We hope this will genuinely change the industry, especially concerning malicious damage from the extortion phenomenon.
Note: We emphasize the opinion “ignores” the subject of the issue of subrogation, and we leave this to the discretion and best understanding of the insurance company in finding creative solutions, if required at all.
