Part 3 of Labor Shortages, Rising Risks: How Immigration Policy is Reshaping Business Protection
- jboynton96
- Jul 21
- 2 min read
From Backlogs to Shutdowns – The Ripple Effect of Delays in Construction
In construction, time is money. But with ongoing labor shortages fueled by immigration policy changes, time is getting harder to manage—and more expensive to lose.
Across the country, projects are being postponed, extended, or paused altogether.
General contractors are struggling to keep jobs on schedule, while developers face rising penalties, strained budgets, and disappointed clients. What starts as a labor issue often snowballs into a major operational and financial disruption.
When Labor Gaps Disrupt Project Timelines
Here’s how these delays are unfolding on real job sites:
Longer build times as crews operate with fewer hands or staggered schedules.
Missed deadlines, triggering penalty clauses or lost business opportunities.
Supply chain mismatches, where materials arrive before labor is available to use them—leading to theft, damage, or storage costs.
Cash flow interruptions when delayed projects mean delayed payments.
The consequences can escalate quickly—and many contractors aren’t aware of how much risk they’re taking on until they face a claim.
How Insurance Can (and Can’t) Protect You
Not all policies are built to absorb the ripple effects of labor shortages. That’s why contractors should take a closer look at:
Builders Risk Insurance: Covers damage or loss to materials, equipment, and structures under construction—but may not respond to delays unless specific endorsements are added.
Business Interruption Coverage: Often excluded from standard builders risk policies but may be available as an add-on. Essential when delays prevent revenue from being generated.
Delay in Completion Insurance: A specialty coverage that protects against lost income, penalties, and additional costs if a project takes longer than planned due to covered causes.
Umbrella or Excess Liability: Provides backup protection when delays trigger lawsuits or contractual disputes.
How Coastline Risk Helps You Stay Ahead of Disruption
At Coastline Risk, we help construction firms understand how coverage interacts with real-world project delays. Our team:
Reviews policy language for delay-related exclusions or overlooked coverage gaps.
Advises on builders risk structuring that aligns with labor uncertainty.
Recommends specialty products like delay in completion insurance when appropriate.
Delays are inevitable—but uncovered losses don’t have to be. Coastline Risk gives you the tools to stay protected, even when timelines shift.
Get a Quote: https://www.coastlinerisk.com/get-a-quote
Contact Us Today: (617) 500-1824. / info@coastlinerisk.com
Protect your business, your team, and your projects with CoastlineRisk. We're here to help you navigate the complexities of the insurance industry and secure the coverage you need to succeed.
Learn more At Coastlinerisk.com
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