en.Wedoany.com Reported - Canadian construction risk insurance company Shepherd and Toronto-based construction technology firm Brickeye announced a partnership on June 25, offering insurance incentives—including reduced water damage deductibles and premium discounts—for projects using Brickeye's waterproofing platform. This program, named "Shepherd Savings," aims to directly link insurance costs to technology adoption.
Shepherd CEO Justin Levine stated that the company is working to introduce behavior-based pricing into commercial insurance. Instead of relying solely on historical loss data and underwriting questionnaires, insurers are increasingly accessing real-time information on how contractors operate on-site and what technologies they use to prevent losses. Levine noted that water damage deductibles for projects using Brickeye's technology can be reduced by 50% or more, as leak detection sensors and automatic shut-off systems substantially alter the project's risk profile.
Some construction risk insurers are offering incentives—including lower deductibles, premium discounts, and better insurance terms—to contractors and project owners who deploy monitoring and loss prevention technologies on their projects. As insurers grapple with ongoing water damage losses and increasingly concentrated value in large projects—from high-rise towers to data centers—the practice of encouraging new approaches and offering discounts has grown in recent years. Industry insiders say insurers are placing greater emphasis on demonstrable risk management practices and incorporating them into insurance decisions.
Sedat Kunt, National Construction Risk Practice Leader at Marsh, said monitoring sensors "are now becoming very common" and "this is one of the most significant shifts in construction risk underwriting." Water damage remains one of the leading causes of construction risk claims, with pipe-related losses topping the list, prompting insurers to gain a clearer understanding of how contractors monitor temporary water supply systems, respond to leaks, and manage exposure risks during construction.
Darren Tasker, Head of Construction Underwriting for North America at Allianz Commercial Insurance, said insurers are increasingly recognizing the value of monitoring technology and incorporating it into their assessments. Tasker noted that in large construction projects, the adoption rate of water damage mitigation systems may already be close to 50% or higher, depending on project size and type.
The degree to which insurers value these measures remains a point of debate. Jason Behrer, Managing Director of Construction Risk at Aon, described the market as being in an early stage, believing many insurers remain cautious about offering significant pricing discounts pending more performance data. Others argue the market has moved beyond the experimental phase. Matt Wagner, Head of Construction Property for North America at Zurich, said that when underwriters are confident in the measures taken, project-specific controls can directly impact deductibles, pricing, and coverage. Wagner added that these measures could mean the difference between a water damage deductible dropping from $2 million to $1 million on a large project.
Several sources noted that leak detection systems, automatic shut-off technology, and other monitoring tools are increasingly viewed as operational assets that can reduce downtime, limit schedule disruptions, and prevent losses before insurance claims occur. As construction risk deductibles climb to hundreds of thousands or even millions of dollars on large projects, avoiding losses has become as important as recovering from them. Kunt said insurers may eventually seek greater evidence that mitigation systems remain active throughout the construction process. Meanwhile, advances in artificial intelligence are also beginning to impact underwriting workflows, though industry insiders generally agree this evolution is still in its early stages.
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