Will Equipment Breakdowns Escalate with Infrastructure Bill Projects?

The Bipartisan Infrastructure Law (BIL) provides nearly $850 billion in funding¹ to help modernize and improve American infrastructure. While many benefits are anticipated, an influx of BIL-backed projects may also increase risk—not only for those directly awarded this work, but for any enterprise that relies on machinery and equipment, as well as the insurers who cover them.

Supply chains, labor markets and our nation’s power grid, already struggling to stabilize in the post-pandemic world, could be under greater stress once infrastructure work begins. The potential negative impacts may not already be on equipment breakdown coverage providers’ radar, but should be:

• Shortages of skilled labor have led to a growing reliance on inexperienced or overworked technicians operating or servicing machinery which may increase the potential for equipment-damaging mistakes.
• Equipment could become more susceptible to breakdowns if owners prioritize productivity of BIL-related opportunities over critical maintenance.
• Power outages and equipment-damaging surges, spikes, dips and arcs may happen more frequently as we rely on our electrical grid to power multiple large BIL projects and integrate new, novel sources of energy.

Proactively managing underwriting challenges that may emerge as infrastructure projects ramp up will be critical. Helping policyholders mitigate the potentially devastating impact of an equipment breakdown can help protect your bottom line, now and into the future.