Contractors face a number of risks for financial loss in their industry. Construction work is physically demanding and job sites are often teeming with hazards. General contractors can oversee a variety of projects from smaller residential projects to larger commercial or industrial projects, and each type and size of project comes with its own unique risks. The most common causes of financial loss for contractors are workplace accidents, equipment theft, fires and construction defects. These types of losses contribute to millions and even billions of dollars lost by contractors and businesses every year. With proper insurance coverage and loss control measures, however, many of these losses can be avoided.
Here are four ways that insurance agents can help protect contractors from the most common causes of financial loss.
1. Workplace Accidents
Agents can help clients with reducing the occurrence of workplace accidents by discussing different strategies for minimizing risks. Some strategies agents may suggest can include:
- Inspecting equipment before each use to ensure it is in proper working order
- Conducting regular walk-throughs on site to make certain that the area is free and clear of debris or other hazards
- Organizing regular safety meetings for workers
- Making sure all workers are using proper protective equipment at all times
- Requiring that any non-workers visiting the job site are escorting through and wearing safety equipment.
2. Equipment Theft
Agents can help their clients protect their costly equipment from theft or vandalism by reminding them to take steps to secure all equipment, tools, expensive building materials and construction vehicles when not in use. Agents can also suggest that clients reduce their risk of theft loss by investing in security cameras or overnight security guards, and by prioritizing placing employees together rather than leaving them alone with equipment for extended periods of time.
Agents should encourage clients to take proper fire-safety precautions when it comes to hazardous materials such as oil or solvents, and adopt anti-smoking policies on worksites. Agents should also remind clients to have a fire extinguishers and fire evacuation plans in place for every project, and to make sure electrical work is performed only by a licensed and bonded electrician.
4. Construction Defects
A construction defect is a defect in the design, workmanship, materials or systems used on a project that results in some form of failure in the building or some part of it, which causes damage to persons or property. One way agents can easily help their clients minimize their risk of financial loss due to construction defects is by ensuring they are fully covered by a specialty contractors general liability insurance program.
About American Team Managers Insurance Services
Founded in 1998 by Chris C. Michaels, American Team Managers Insurance Services (ATM) has provided wholesale and MGA services to more than 5,000 independent insurance agents throughout the United States. Our goal is to establish close, long-term relationships with our agency partners and insurance carriers and provide competitive products for the Exclusive and Non-Exclusive markets that we serve. For more information on our products and services, give us a call at (714) 414-1200 to speak to a representative.