Strengthening Builders Risk with Hot Works and Wet Works Programs

The builders risk market continues to soften across the US, including California, due to increasing carrier capacity and increasing carrier competition. This softening is translating to less stringent underwriting, downward rate trend, easing security requirements, and a greater sense of partnership with the carrier. Nevertheless, underwriters are more routinely requesting a hot works program and a wet works program be in place for builders risk policies.

Hot Works Program

A Hot Works program outlines safe practices for any activity that produces heat, sparks, or open flames. Common examples include welding, cutting, grinding, soldering, and torch-applied roofing.

Core Elements Include:

• Permit system: Requires a hot work permit before starting.
• Fire watch: Assign personnel to monitor for sparks and fire during and after work.
• Controls: Remove combustibles, use fire-resistant shields, and have extinguishers ready.
• Training: Workers must understand hazards and procedures.

Purpose: A well-documented Hot Works program helps prevent fires and property damage during heat-producing operations, something carriers view as a critical layer of protection on any jobsite.

Wet Works Program

A Wet Works program introduces controls for all construction activities involving water systems. This includes the installation, testing, and maintenance of plumbing, fire sprinkler systems, and HVAC water lines.

Core Elements Include:

• Pre-work planning: Identify water sources and shut-off points.
• Permit system: Requires a wet work permit before starting.
• Monitoring: Supervise pressurization and testing of systems.
• Leak detection: Use sensors or manual checks during and after work.
• Emergency response: Quick access to shut-off valves and cleanup protocols.

Purpose: Wet Works programs help reduce the likelihood and severity of water damage during construction and renovation, protecting both the project and the contractor’s builders risk coverage.

Why These Programs Matter

Putting formal Hot Works and Wet Works programs in place strengthens your overall builders risk profile and demonstrates a proactive approach to project safety and loss prevention. These programs not only help protect your jobsite, they also support smoother underwriting and more favorable terms with carriers. Establishing clear procedures, training your teams, and documenting each step creates a safer environment and reduces the potential for costly delays. Our team is here to help you review your current practices and ensure your program aligns with carrier expectations.