How to Choose Small Business Insurance That’s Right for You

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Small business insurance protects you and your company when the unexpected happens.

While many worry about issues such as break-ins, these are some of the least-costly issues a business may face, whereas issues like being sued for things like reputational harm, having a motor vehicle accident, or having a product liability claim rank among the costliest, causing unprotected business owners to dish out tens of thousands of dollars each.

It’s issues such as these which can easily cause a growing company to fold, but it doesn’t have to be that way. When you have the right small business insurance for your needs, issues like this can be no more than a blip in your radar.

Work with a Small Business Insurance Specialist

If you haven’t purchased small business insurance before, you may initially feel more comfortable approaching the agent who handles your personal home or auto insurance.

This isn’t always the best choice because there are marked differences between the types of claims individuals deal with and what companies deal with. Agents and brokers who don’t routinely handle commercial issues may load you down with coverage you don’t need or unintentionally leave you vulnerable, so make sure you’re working with someone who has experience in commercial coverage for small businesses.

Check Reputation Before Starting

You don’t want to wait to find out that an insurance carrier has a history of not paying out or has a lengthy claims process when you’re already facing an issue. Once you’ve found a company that seems like a good fit, check with the Better Business Bureau to verify they have a history of taking good care of the people they serve. Another great resource to check is A.M. Best as they provide an overview of a carrier’s financial strength and credit-worthiness which is an indicator of their ability to pay claims even in catastrophic circumstances. Also make sure to ask your agent for feedback on the carrier’s claims process to gain some inside knowledge from the professionals that work with the carriers on a daily basis.

Select the Right Policies for Your Needs

There are various types of small business insurance. Depending on your industry and how your business operates, you may need some or all of them to be fully protected. It’s also worth noting that possessing certain policies is often mandated by law, so compliance will ensure you can stay open for business and don’t wind up with fines. Business Owners Policy: Also known as a BOP, This policy that will bundle a few types of coverages, such as general liability, property, and business personal property,  in order to fill those holes in your coverage. This is the go-to coverage for small businesses to make sure that a claim won’t force you to close your doors. Depending on your industry, a BOP might not be available, so packaging coverage through a few different carriers will be your way to go.

General Liability: If your company is sued over property damage or some form of bodily injury, it’s your general liability coverage that will usually step in and protect you, your business, and your employees. For example, if someone burns themselves while drinking coffee purchased from your restaurant, or ink cartridges you sell malfunction and break costly equipment, general liability will foot the bill. However, each policy is different, and you’ll have to choose the degree of protection best suited for your exposure.

Professional Liability: Also known as errors and omissions Insurance, this coverage provides professional service companies against claims arising from mistakes (errors) and negligence (omissions). Mistakes and unexpected delays happen, and these can sometimes cost your customers time and money. For example, if you unintentionally give a client bad advice or you can’t fulfill an order, professional liability will cover legal expenses. Further Reading.

Workers’ Comp: Most states require companies to have workers compensation insurance. This policy ensures your employees have their medical needs seen to if they’re injured on the job or become ill as a result of their work.

Commercial Auto: If you have a company vehicle or fleet, picking up commercial auto coverage is an essential. This covers medical bills if people are injured in an accident, damage to vehicles, and property damage caused by your vehicles. However, many small business owners, and even their employees, use personal vehicles for work, not realizing that their personal policy may not provide coverage for work-related accidents. Be sure to check into your personal policy if you’ve been relying on it for protection.

Get a Small Business Insurance Quote

No matter which types of small business insurance you’re looking for, Citizens General is here to help. We focus solely on helping growing companies and understand the importance of finding the right level of protection at the right price. To get more information about which policies may be right for you and obtain a free quote, simply provide us with a few details about your company and we’ll be in touch as soon as possible.

Three Tips to Prevent a Massive Workers Comp Audit

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Audit is a dirty word. For most people, it carries a negative connotation because of the horror stories stories we hear from friends, from work contacts, and in the news media. In insurance, an audit is simply a review of the policy and policy premiums to establish if the risk presented at the start of the policy period is in-line with the actual risk experienced. For a workers compensation insurance policy, an audit is performed to assess the risk of providing insurance coverage for the employees of a company and the risk of injury associated in their profession. The horror typically is experienced when the estimated risk and the actual risk of the insurance coverage doesn’t sync, which can result in huge changes to your insurance premium.

Here are a few practices you can adopt in your business to make sure you don’t get stuck with a massive audit bill.

Make Sure You’re Periodically Reviewing and Reporting Payroll

Depending on how your workers compensation policy is structured, you may be reporting your payroll to your workers compensation carrier every time you run payroll or only at the end of your policy term. If you have your workers compensation policy integrated with a payroll company such as ADP, your payroll is already being reported each time you’re processing paychecks. If your payroll isn’t consistent, or you’re not setup with a payroll company, make your you’re reviewing your payroll at least once a quarter to see if it is in line with your estimated payroll when starting the policy. If it’s not, this is a huge red flag that a correction will be made at audit.

Let’s look at an example. You started a workers compensation policy with an estimated $100,000 payroll for a 12 month period, and are paying a set premium monthly. But your business is growing and you had to hire some more employees. After six months, you realize your payroll for the year is closer to $200,000, $100,000 higher than your beginning estimate. Since you’re making a set payment based on the original payroll estimate, there will be additional premium due to the carrier on the increased payroll. Being proactive and notifying your broker of the increase means that additional premium can be added to each monthly payment rather than as a lump sum at the end of the policy period.

Hiring a new employee is a great time to re-evaluate your business insurance and report changes in payroll to your workers compensation carrier. A new employee invariably means an increase in your employee payroll totals. Keeping your insurance carrier up to date with the latest annual payroll estimates will make sure your end of year totals are in-line with estimates.

Classify Your Employees With The Appropriate Class Code

A class code is a numerical identifier that corresponds to the operations performed by each employee, and each carrier assigns their own rate to each class code. Your workers compensation premium is calculated from the rate of your list of class codes and how much payroll is estimated within each class. Clerical employees, or office staff, are assigned class code 8810 and have a rate with AmGUARD Insurance of .54 in California (the rate will vary by state). To calculate your payroll premium, you would multiply this rate by your estimated payroll for your office staff.

Classifying your employees with the appropriate class code is incredibly important because you will be paying that class codes rate within your workers compensation premium. However if operations of your employees fall outside of that class code, an auditor will assign a different class code to those outside operations and assign the appropriate amount of payroll based on how much work was performed. If that new class code has a higher rate than your original class code, you may be looking at a hefty bill. Also if the different operations are not tracked, an auditor will have to assume the highest rated class code for all work, meaning you may be paying much more than you need to be.

Let’s look an example of this within the construction industry. You’ve hired some employees to perform painting on your residential remodel projects. But they routinely help out with flooring, cabinet installations, and running electrical while their paint is drying. An auditor will likely reclassify your employees class code to general carpentry. A painting class code of 5454 carries a rate around 16.00, whereas a general carpentry class code of 5403 has a rate around 23.50. Since the correct class code was not assigned, that additional policy premium will be coming due at audit.

Not sure if your employees are correctly classified? Review your workers compensation policy with an agent today.

Double Check That Your Subcontractors Have Workers Compensation Insurance

One of the biggest reasons for receiving a massive workers compensation audit bill actually doesn’t concern employees, but rather, subcontractors. Subcontractors differ from employees because these are the key guys (and gals) who have the specific training and know-how for those specialized tasks of your project, yet operate under their own business umbrella. Before you let a subcontractor onto your jobsite, make sure they provide you with a certificate of insurance showing proof of workers compensation. A certificate with workers comp listed is one of the things you should be collected from your subcontractors because it is a requirement from your own workers compensation carrier.

If a subcontractor is hired by your company, and that subcontractor doesn’t have their own workers compensation policy in place for their company, your carrier will automatically assume the risk and provide coverage should a work related injury occur. This scenario is bad for you in two ways: it leaves your policy open to a claim, and it may result in a heavy premium increase. The increase in the risk assumed by the carrier has to be paid for somehow, and that somehow is by increasing your workers compensation premium. In short, collecting a certificate at the start of their work is a lot easier than writing an unexpected check when the work is complete.

If you feel you may be at risk of a huge workers compensation audit, the first thing to do is review. Feel free to contact us to schedule a free consultation where we may help with the review and suggest ways to prevent an audit bill in the future.

 

General Contractors: Things You Should Be Collecting from Your Subcontractors

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If you’ve already started your own construction business, or are interested in starting your own business as a contractor in the near future, chances are you see the benefits of being your own boss. Being able to set your own schedule, decide which projects you want to bid and ultimately work on, and taking home those boss-sized paychecks are just a few of the pros to self-employment. But just because you want to own your own business doesn’t necessarily mean you want the stress of performing every aspect it takes to run that business. That’s a lot of hats, and the average sized head is not big enough to hold all of them.

Enter: Contractors. Or subcontractors, more specifically. Subcontractors differ from employees because these are the key guys (and gals) who have the specific training and know-how for those specialized tasks of your project, yet operate under their own business umbrella. Subcontractors are routinely the solution to providing specialized skilled labor, so you can delegate tasks and focus on the bigger picture. But as you award projects out to your construction subs, there are a few things you’ll need to make sure you are reviewing and collecting from them to stay in compliance with your own contractor insurance policies.

Step 1: Verify your Subcontractor is Properly Licensed

Does your state require contractors and artisans to carry a contractor license? Make sure your subcontractors are adhering to those requirements. Some states, such as California, only require a license of most tradesmen if they are performing projects greater than $500 in value. New Jersey, on the other hand, requires a license anytime a business or individual is engaged in home improvement or construction operations, regardless of the project size.

Double check with your state license board for the requirements of carrying a license. Chances are that if you’re required to have one, they are too. Also review the license board to verify the license is current and active. A sub may provide a license number, but if it’s suspended or expired, that means they aren’t compliant. If you are hiring unlicensed subcontractors, you run the risk of incurring fines from the state and being out of compliance with your insurance, which could be grounds to deny a claim if one should arise.

Step 2: Standard Subcontractor Agreement

Having subs complete a standard work contract is the first step toward bringing them onto your project. This not only good practice, but is often required by your own general liability insurance carrier.

A standard work contract for your subcontractors should outline the scope and length of the project, description of work performed, terms of payment, and what happens in the event of a suit or claim. It also outlines the insurance you require them to carry in order for them to step on the site. If you’re not already in the practice of having your subcontractors sign a standard work contract, it’s never too late to start now.

There are a few things your insurance carrier will typically require you to ask of your subs:

* Limits of insurance coverage equal or greater than your own. This makes sure that they have the adequate amount of coverage for the project so their carrier(s) can cover any loss in the event of a claim.
* A hold-harmless agreement, or an indemnity clause. An indemnity clause protects you against any legal action taken against you from a third party based on the actions of and work performed by the subcontractor. This way you or your insurance carrier doesn’t incur the expense of a claim when it’s someone else’s fault.

Step 3: Receive a Certificate of Insurance

Collecting a certificate of insurance, or COI, from your subcontractors is arguably equally as important as having them sign a contract. This is your “proof” that they have the insurance coverage you require in your contract. Just like the subcontractor contract, your carriers require you collect this COI and keep it on file. Proof is in quotations because, unfortunately, that piece of paper is just a piece of paper at the end of the day, so you should always follow up with the agency listed on the form to verify the insurance.

There are two main insurance policies you should always require your construction subs to list on the certificate: General Liability and Workers Compensation.

Verify your Subcontractor has General Liability insurance
Should a claim arise from the work your sub is performing on the project, you’ll want to make sure they have the insurance to cover the damages. You don’t want a claim to hit your insurance for work you didn’t actually perform. The indemnity in the subcontractor agreement[c] holds you harmless for the work of the subcontractor; making sure they have the insurance to cover a claim is your peace of mind.

Also, make sure their general liability insurance lists you as an additional insured. If the claim does trickle up to you and a homeowner / property manager wants to file a claim on your insurance (since you are top dog on the project), being additional insured means that you can use the subcontractors insurance as coverage instead of your own, further protecting your company from claims. This works to keep your insurance premiums as low as possible by maintaining a clean loss history with your carriers.

Verify your Subcontractor has Workers Compensation insurance
This is similar to verifying your subcontractor carriers general liability because you’ll want to make sure that if the subcontractor is injured on the job, they have their own coverage to pay against those injuries, rather than coming after you. Think your workers comp carrier will deny the claim if a subcontractor without insurance tries to file a claim on your workers comp? He’s a sub, there’s no coverage right? Not so fast….

Workers Compensation policies will cover all individuals hired by your company, whether they are W-2, subcontractors without workers compensation coverage, or that guy you hired for the day. Collecting a certificate showing a comp policy before the sub starts work is your assurance that if something goes awry, they won’t need to look to you to pay the medical bills. Verifying the coverage first is much easier than trying to find insurance at renewal with a claim on your policy.

Whether you’re hiring a subcontractor to paint the sheetrock you just hung on the wall, or to roof that new room addition on a custom home, priority number one will always be to protect you and your company. Refer to your own policies to see if there are any other requirements your carriers are mandating for your subcontractors. And always remember that if you have any questions feel free to reach out to contact us at Citizens, and we’ll be happy to help you navigate hiring subs.Construction Insurance

Workers Compensation For Contractors – What Is It and Who Needs It?

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As a contractor running your own business, figuring out what types of insurance you need for the business is one of the most important ways you can protect your hard work. And this important task, while crucial for minimizing risk, can be confusing and frustrating. This is especially true with Workers Compensation insurance, as not every state requires Workers Compensation, and not every state enforces the requirement for every business owner.

Sound like things are getting more complicated by the second? Fear not. We’ll break it down here and explain just who needs Workers Comp in the construction industry, and who can most likely skip it. If you’re in a hurry you can skip right to point and get our Workers Comp cheat sheet to give you the answer.

If you’re the type who wants all the gritty details, read on…

What is Workers Compensation?

Workers Compensation is a type of insurance policy that provides benefits to an employee or their dependents for work related injuries, disability or disease sustained by that employee. In plain English: if someone who works for you gets hurt on the job, or because of the job you hired them to do, Workers Comp covers the costs associated with that, so your business doesn’t foot the bill.

A Workers Comp policy is purchased and maintained by the employer for the benefit of the employee. Workers Compensation laws were established in the early 1900’s to address the conflicts between employees and employers along the issues of workplace injury and illness. Before these types of laws were adopted, employees used to have to sue their employers to recover any lost wages due to absence or compensation toward medical bills. Thankfully that’s no longer the case.

What does Workers Comp Cover?

Typically, Workers Compensation insurance will provide payment for medical bills related to diagnosis and treatment of a workplace injury or illness. Coverage may also extend to rehabilitation and recovery treatments. It also provides disability payments to the injured employee while they are unable to work. Lastly, Workers Comp can be used to cover injury or illness that is the result of multiple years of job operations or workplace conditions.

Are all Job Related Injuries Covered?

Most job related injuries in the construction industry will be covered by Workers Comp, but not all. Injuries stemming from intoxication, violation of company policy, self-infliction, or injuries sustained while not at work are almost always excluded from coverage under the policy. Almost all injuries that might not be eligible for coverage can be mitigated by creating and adhering to a workplace safety program and code of conduct.

So now that we know the basics of a Workers Compensation policy, does everyone need to carry it?

Who is Required to Carry Workers Comp Coverage?

Compensation laws have come along way since their early days, with nearly every state requiring employers to carry coverage if they have employees. We use the term “nearly” since insurance is governed by the state, rather than the federal government. Therefore, state laws encompassing Workers Comp vary by state.

It gets even a little more complicated in certain states, as requirements for Workers Comp are different depending on the industry in which you’re operating. Texas, for example, only requires private employers to carry a Workers Comp policy when employees will be working on public projects, whereas California requires all roofing contractors to carry Workers Compensation, regardless of whether or not they have an employee.

Though each state has their own guidelines, here’s a basic series of questions you can ask yourself to see if you may need a workers compensation policy:

 

Workers Comp Cheat Sheet Infographic

You’ll want to review your state’s requirements, but a basic rule of thumb is if you have an employee, you should probably carry a comp policy. Still confused, or have a unique situation you’d like to discuss? Give us a call or send us an email and we’ll be happy to help you work it out.

Top 25 Construction Blogs & Publications to Follow

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It’s never been easier to find the information you need to do your job and grow your construction business. Information is everywhere: on your laptop, tablet, and even the phone in your pocket. In fact, there’s so much information available that the biggest problem we face now is finding trustworthy and reliable sources to give us the right info at the right time.

Last year we helped you cut through the noise by curating a list of the Top 20 Construction Blogs and Publications You Should Follow in 2016.

This year our top 20 list is back, bigger, and better than ever.

We’ve added a few new names and updated our wildly successful post to help you find the right information you need to get your job done. Whether you’re looking for legal advice, tips for working with government contracts, or even access to the science behind construction technology — we’ve rounded up the best construction blogs on the planet.

So check out our list of the best contractor resources to keep you informed for the rest of 2017 and into 2018, too.

The 25 Best Construction Industry Blogs and Publications

1. AEC Business

AEC Business is a blog that will appeal to business owners, R&D managers, and construction business developers alike. Written by Aarni Heiskanen, an architect turned architectural R&D manager, internet entrepreneur, and certified management consultant, AEC Business is a valuable resource for any construction professional. Innovative ideas, products, tools, and success stories are at your fingertips to help you increase your company’s success. AEC Business features blog posts and podcasts, has a simple, clean, and stunning layout, and is not to be missed.

Recommended Reading:

  • How Drones are Speeding Up Construction
  • Bringing Your Construction Site Up to Code

2. Science Daily: Construction

If you get excited about the future of engineering and construction technology, then you may want to check out construction and engineering feed from Science Daily. SD is your source for the latest research news and results from scientific studies. There are over 200,000 research articles covering a variety of topics like science, health, technology, and the environment. If you love the science behind the art of construction, you’re gonna love Science Daily.

Recommended Reading:

  • Tough, Self Healing Rubber Developed
  • How to Pave Over Our Big (Cigarette) Butt Problem

3. ConAppGuru

“Construction Technologist” Robert McKinney brings you ConAppGuru, the ultimate resource for construction technology. McKinney reviews the best construction apps, hardware, and strategies to get your company up to speed on the latest technology. Whether you are a one-man operation, owner of a large construction firm, tech fan, or completely clueless about construction technology, McKinney’s blog has something for you.

Recommended Reading:

  • To Drone or Not to Drone for 2017
  • Five Productivity Apps for Construction Teams

4. Contractor Hub

Part industry blog and part contractor directory, Contractor Hub offers tools, resources, and information that any contractor would find useful. The Contractor Hub blog covers a wide range of topics including business, insurance, marketing and sales, technology, and trade news. Contractor Hub excels in offering modern-day advice for marketing your construction business online; look for helpful SEO tips and information about social media marketing.

Recommended Reading:

  • How to Optimize Your Contractor Website for Local Search
  • Bringing Skilled Workers Back to the Construction Industry

5. Construction Informer

Construction Informer provides a range of content from interviews to infographics, how to articles and more. Duane Craig has been covering the construction industry for 10 years at Construction Informer. The information provided by Craig is in-depth, up-to-date, and relevant. A can’t-miss blog for anyone in the trades.

Recommended Reading:

  • 5 Ways Equipment Financing is Empowering Small Construction Businesses
  • Define Your Best Construction Customer and Sell to the Right Ones

6. Constructonomics

Leaders in construction, real estate, and architecture will all find something to love about Constructonomics, a “construction industry blog that digs below bedrock.” A variety of writers provide industry insights that cover everything from painting tips, how to collect from clients who won’t pay, construction agreements and safety. Don’t miss this incredible resource.

Recommended Reading:

  • Common Construction Industry Myths – Debunked
  • Seven Things to do When an Owner Doesn’t Pay

7. Construction Contract Advisor

You don’t need to specialize in construction contract law, that’s what you have the Construction Contract Advisor blog for. Written by the law firm Lamson Dugan and Murray, LLP in Omaha, Nebraska, this blog is a must read for contractors who want to stay in-the-know on all aspects of construction law.

Recommended Reading:

  • Don’t Get Caught Holding the Bag: Hold the State Liable when a GC Fails to Pay
  • Workplace Safety- The Unpreventable Employee Misconduct Defense

8. Marshall Leslie

Marshall Leslie is the owner of Toronto based consulting firm M. Leslie Inc., and an industry resource you’ll definitely want to check out. Leslie’s blog offers up observations on the North American construction industry, economic news, sustainable building trends, and is a great resource for green building and policy updates as well. Leslie posts often, and if you follow him on Twitter you won’t miss a single one.

Recommended Reading:

  • NAHB Forecasts Housing Will Continue Gradual Climb to Higher Ground in 2017
  • Modern Slavery: the Dark Side of Construction

9. Construction Marketing Association

The Construction Marketing Association (CMA) blog may belong to the CMA, but you will find much more than just construction marketing resources and support here. A wide range of topics and categories include construction equipment, safety, home remodeling, power tools, and events. But that’s not to say you don’t also get a fair amount of extremely valuable marketing information, as well. Whether you are looking for tips to improve your proposal success or improve your website’s lead capturing ability, the CMA blog has it all.

Recommended Reading:

  • How to Launch a Link Building Campaign for Your Construction Firm
  • Relationship Marketing and Developing Loyal Customers

10. BrightView

The only specialized niche blog to make our list, BrightView (formerly Valleycrest Takes On) is a blog by commercial landscaping company BrightView that focuses on water management issues. With an increasing demand for green building, sustainable design, and water conservation in the construction industry, landscaping business pros are not the only ones who can benefit from the targeted information provided by this blog. BrightView posts still offer personality, tips on sustainability, and fascinating case studies that demonstrate real costs savings.

Recommended Reading:

  • The How and Why of Regenerative Landscapes
  • Smart Alternatives for Water Thirsty Turf

11. Contractor Talk

Come to Contractor Talk for the member-written blogs and articles, but stay for the forums. This site is specifically tailored for the contractor community, with valuable business and trade knowledge right from the mouths and minds of fellow contractors. Contractor Talk lets its members write and share their own blog posts, review products and tools, and track and share their latest projects. It’s an excellent resource for contractors by contractors.

Recommended Reading:

  • 7 Hard Knock Truths to Building a Successful Contracting Business
  • The Coming Jobs War

12. Best Practices Construction Law

You don’t have to be an expert at construction law when you’ve got access to the Best Practices Construction Law blog written by construction and litigation attorney Matthew Devries. Devries breaks down topics like risk assessment, claims management, contract drafting guidelines, legal trends, and alternative dispute resolutions in a comprehensive and easy-to-understand manner.

Recommended Reading:

  • What I Learned from My Kids about Delay Claims
  • Top 14 Most Common Scheduling Mistakes by Contractors

13. Build Blog

A sharply designed blog written by Seattle based BUILD LLC, the Build Blog captivates with breathtaking photos and discussions of modern design. BUILD is a design-build firm creating modern architecture for their Pacific Northwest clients. Stay ahead of the latest trends in modern design and sustainability, and impress your clients with your design savvy by following the Build Blog, which just celebrated its 10 year anniversary.

Recommended Reading:

  • How Much Energy is Saved by Reusing a Foundation?
  • The Down and Dirty of Sustainable Design

14. Planting Acorns

Founder and President of Birmingham, AL Stewart Perry Company Merrill Stewart is the voice behind Planting Acorns. Stewart’s blog is about “helping you find seeds of potential where others only see a blank space.”

Merrill’s first person account of the commercial construction industry, and updates on current Stewart Perry projects, is warm, easily read (Merrill is fond of the bullet point), and even inspirational at times.

Recommended Reading:

  • How to Cancel with Class
  • Tilt Wall vs Masonry Construction

15. Federal Construction Contracting Blog

When you work on government projects you need a more specific kind of construction advice. The Federal Construction Contracting Blog offers just that – news and information pertaining to government contracts and considerations for military and civil works construction. Look for webinars that will really expand your knowledge and skill set. The FCCB may not be for all contractors, but if you think your business is ready to take on government projects then it’s practically required reading.

Recommended Reading:

  • Key Considerations in Small Business Teaming
  • Legal Landscape Special Edition: SBA Rolls Out Major Small Business Changes

16. Building Design + Construction

Specializing in non-residential construction, BD+C magazine focuses on the architects, engineers, contractors, and owner/ developers working on projects such as airports, government buildings, commercial offices, retail, and multi-family residences.

Recommended Reading

  • 4 Ways to Prepare for a Negotiation
  • Good Design Can Combat Open-office Issues

17. Construction Dive

Want the latest industry news in an easy to read, quickly digestible format? Construction Dive has you covered. The ConstructDive editorial team keeps up on the latest news and provides thoughtful analysis with in-depth feature articles for residential and commercial contractors. Dive into the site yourself, or sign up for a daily newsletter to deliver the top stories right to you.

Recommended Reading:

  • What Contractors Need to Know about OSHA’s New Silica Rule
  • The Coming Crackdown: Why Penalties for Construction Owners are on the Rise

18. Construction Business Owner

Construction Business Owner magazine is built for contractors looking for the latest business management information, full of practical knowledge on accounting, equipment management, finance, industry statistics, contractor insurance, regulatory issues, human resources, bidding strategies, technology, and jobsite safety.

Recommended Reading:

  • How to Mitigate the Abuse of Construction’s Drug of Choice
  • Controlling the Cost of Safety

19. Professional Remodeler

Professional Remodeler magazine is created for general remodeling contractors, as well as residential and commercial professionals. The target audience, however, is the small to medium business remodeling contractor who has been in the industry for a few years. Pro Remodel is focused on delivering business management information as well as resources on products, trends, news, design, sales, and marketing.

Recommended Reading:

  • A Subtle Change in the Residential Construction Industry
  • Are Free Estimates in Your Best Interest?

20. Professional Builder

Established in 1936, Professional Builder has been a trusted resource for the construction industry for generations. Professional Builder delivers excellent resources to builders ranging from industry news, product information, business development, and more. Every year, Pro Builder highlights a home builder paving the way for the rest of the industry and awards them with the Builder of the Year title.

Recommended Reading:

  • The Pros and Cons of Group Purchasing
  • Consequences of Complexity in the Building Process

21. Contractor Magazine

Another industry publication with a distinguished history is Contractor Magazine, which has been helping contractors build their business since 1954. Industry news, in-depth articles, videos, and resources for plumbers, welders, piping contractors and more.

Recommended Reading:

  • How to Get Started in BIM
  • Lien Waivers: What am I Really Waiving?

22. Construction Executive

More than 50,000 construction business owners rely on Construction Executive for news about the business issues impacting the construction industry. Construction owners and top managers can find reliable information on workforce development, safety and liability, technological advancements, legislative action, insurance, estimating, and project management.

Recommended Reading:

  • Is Your Jobsite Smart Enough?
  • Rebranding Construction to Attract a Talented Workforce

23. For Construction Pros

The ultimate resource for contractors, For Construction Pros is your destination for this and six other digital publications, including:

  • Equipment Today
  • Rental
  • Pavement
  • Concrete Contractor
  • Asphalt Contractor
  • Sustainable Construction

A one-stop shop for information across the construction and equipment industry.

Recommended Reading:

  • How to Communicate Concrete’s Sustainability Message
  • Construction Cost-reduction Playbook: What’s in Yours?

24. ENR Engineering News-Record

ENR is the one of the world’s leading engineering and construction news magazine, and has been providing contractors, project managers, owner/ developers, engineers, and architects with industry news, analysis, data and opinions since 1911. ENR compiles and publishes an extensive amount of data on labor costs and construction materials, in-depth industry economic analysis reports, and the rankings of the largest construction and engineering firms by revenue.

Recommended Reading:

  • Winning Hearts and Minds for Digital Transformation
  • ENR Risk Survey: The Clients and Clauses That Companies Avoid

25. Equipment World

Where can you get the latest news and information on work trucks, excavators, dozers, and more? Equipment World, of course. The review section accomplishes something almost impossible: unbiased, contractor-based reviews of heavy equipment from owners who rate their performance, serviceability, and machine comforts, as well as dealer service and support.

Recommended Reading:

  • Construction is Driven by People, Not Machines
  • Intelligent Traction: How modern articulated dump trucks traverse hills, extreme slope with a full load

There you have it! Our updated list of the best construction blogs, publications, and resources in the industry. Because in a world where information is everywhere, it helps to know who to trust and where to go for the info you need to succeed in the trades.

contractor insurance quotes

Contractor Insurance Checklist

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Contractor insurance can cover just about every aspect of your trade, protecting you, your business, and your assets from unexpected (and costly) events. From an unintended auto accident to an unhappy customer or an injured employee, contractor insurance defends against the risks that could permanently put you out of business.

Because every accident, incident, and act of nature is an opportunity for a lawsuit or monetary loss that could bring down everything you have worked so hard to build.

Contractor Insurance Checklist for General and Subcontractors

Whether you’re a general contractor, subcontractor, or construction business owner, your investment is at risk. One single accident or incident could cost you everything.

Luckily, you can easily defend your construction business with the right insurance coverage. So you can keep blazing ahead, building your future.

Use this checklist to find the contractor insurance policies that you simply can’t afford to ignore.

General Liability

In today’s litigious society, any small accident or incident could result in a lawsuit. Which is why general liability insurance should be the foundational policy of any contractor insurance coverage.

General liability protects you from third-party lawsuits in the event someone has experienced injury, bodily damage, or property damage as a result of your business.

The legal costs for litigation averages anywhere from $3,000 to $150,000, according to a 2005 SBA report.

A general liability policy for your business can cover the costs of a lawsuit that could cost your business in legal fees, lawyer’s fees, settlements, judgements, and even the high price of business interruption. When you have general liability coverage, your out of pocket expenses are typically the cost of your deductible — far less than the cost of litigation.

Inland Marine

The equipment you invest in doesn’t stay in one spot. Protect your mobile tools and equipment with inland marine insurance.

As you move your tools and mobile equipment from one project site to the next, the risk for damage or loss increases. Luckily, inland marine coverage goes where your equipment goes. Like the power tools you take to the construction site.

Workers’ Compensation

Do you use subcontractors to get the job done or do you have employees? Even a single, part-time worker could mean you need workers’ compensation insurance.

The construction industry is a high-risk one. Your employees are more at risk for illness or injury than the barista who made your coffee this morning. A slip, fall, or other accident could mean lost wages and costly medical bills for your employees.

Workers’ comp protects your employees from the high costs of medical treatment and lost wages in the event they’re injured or become ill while performing their job. Providing workers’ comp insurance is not only the right thing to do for your employees, in most states it is also required by law.

Commercial Auto

A contractor’s vehicle has many roles to fill. It’s a satellite office, a break room, a tool shed, and an equipment transporter. Your work truck (or van or suv) may even pull double-duty as your personal vehicle during the weekend; towing your family boat, picking up groceries, or taking the little league team out for ice cream after the game.

But don’t expect your personal auto coverage to work as hard as your truck does.

If you’re involved in an accident or have an auto claim while using your vehicle for business purposes, your personal auto coverage generally won’t cover it.

You’ll typically need commercial auto if you want to cover:

  • Autos used primarily for business purposes
  • Autos that are registered or leased to your business
  • Autos that your employees are driving

Don’t rely on personal auto insurance to protect your work autos from the risks of the road; commercial auto insurance is an important policy for contractors who spend more time out in the field than sitting in an office.

Commercial Property

Do you own or rent the building your construction business uses for your day-to-day operations? Either way, commercial property insurance is your key to defending it.

  • If you rent, commercial property can protect the stuff that’s inside your building, such as equipment, furniture, materials, and supplies.
  • If you own, commercial property can protect the building itself as well as the stuff that’s inside it.

No one ever plans for a fire, busted pipe, storm damage, theft, or vandalism. But with commercial property, you won’t have to pay the price for damage or loss to the place and things you need to operate.

Tip: Running your construction business from home? Even home-based businesses need a little extra property coverage. A standard homeowners insurance policy won’t always fully cover the business tools and equipment that you’ve got at home. Ask your insurance professional about a rider to your homeowners policy to protect your business investments.

Builders Risk

This one’s for the general contractors. A builders risk insurance policy protects your investment in a project during the course of construction, which is why it’s also referred to as a course of construction policy.

If a fire broke out on a residential project and destroyed the work you had already completed, as well as some valuable tools kept onsite and materials you’d already purchased, builders risk would be there to help you recoup your loss.

Builders risk policies are typically project specific and written on a 3-month, 6-month, or 12-month term. The coverage remains with the project until construction is completed.

Tip: There are any number of parties with an “insurance interest” in a project – including subcontractors, engineers, or anyone else who could lose out on labor, materials, supplies, and potential profits if there was a loss during construction. Builders risk policies are generally obtained by a project owner, developer, or general contractor who will list anyone with an insurable interest as a “named insured.”

General contractors should consider this policy as part of their contractor insurance checklist, but subcontractors should remember that they’ll want to be included as a named insured on any builders risk policy taken out by a general contractor or project owner.

Umbrella Coverage

Extra coverage is often overlooked but an umbrella policy could be one of the most important contractor insurance policies available. Umbrella insurance is there to protect you in the event of a claim that exceeds your policy limits.

Imagine the worst case scenario. An accident leads to severe third-party injuries and a lawsuit. The final result is a million dollar claim for court costs, judgements, and medical bills against your general liability policy. Your policy limit is only $500,000. Which means you’re left footing the bill for the other half a million.

Umbrella insurance can be applied when a covered claim exceeds the limits of an eligible underlying policy, like a general liability policy.

In the example above, your general liability policy would cover the million dollar claim up to its limit – $500,000 — and then your umbrella insurance would kick in to cover the remaining half a million dollars.

And all you’ll be responsible for is the cost of your policy deductibles.

How many of the above business insurance policies do you currently carry?

Chances are, you may have just discovered some holes in your contractor insurance defense plan. When you’ve worked hard to build up your construction business you want to protect it completely. Compare this checklist to your current insurance protection. If you’re missing any of the policies listed above it may be time to fortify your defenses so you can keep building your business without worry.

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7 Ways Contractors Can Save On Commercial Auto Rates

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But just because your construction business needs to have commercial auto insurance, doesn’t mean you have to overpay for good coverage.

Here are seven ways you can save on your insurance rates, and put some extra cash back into your business where it belongs.

1. Hire Solid Drivers

Will your employees be driving your truck, vans, or other business vehicles? Then you want to be smart in your hiring practices and look for people with clean, solid driving records (You can check a would-be employee’s driving record through the DMV).

Drivers with spotty records will come with higher premiums, and some carriers will even decline to cover the driver should they operate one of the vehicles.

But drivers with clean records can save you money. And give special notice to potential employees who are authorized to operate commercial vehicles; drivers with a commercial license can get you even lower rates.

2. Choose a Higher Deductible

One easy way to lower your monthly premiums is to raise your deductibles. The extra money that you save on premiums each month will often make up for the larger deductible amount in the event you need to file a claim.

3. Install GPS on Fleet Vehicles

Many insurance companies will offer you a lower rate on commercial auto when your fleet vehicles have GPS systems installed. GPS systems tend to reduce the amount of claims due to vehicle theft, reckless driving, and misuse of vehicles. When employees know a GPS system is on the company vehicle they are using, improved driving behavior often follows. Fewer claims due to GPS means lower rates for your fleet.

4. Evaluate New Purchases

Think twice before paying top dollar for that new work truck or fleet vehicle. The higher the value of an automobile, the higher the premium will be. To get the true price of that new work truck, look at the price of the vehicle plus the price of its annual premium.

5. Update your Policy

Have you retired vehicles or lost employees this year? Don’t forget to update your commercial auto policy so you aren’t paying to cover vehicles not in use, or the drivers no longer operating them. Keeping your policy updated means you only pay premiums for the vehicles and employees that you need to cover, and can likely put a few extra bucks back into your business.

And while you are updating your policy, ask your insurance provider what kind of discount you can get for combining other policies with your commercial auto. Citizens General offers a 10% discount off both your general liability and your auto policies if you combine both.

6. Don’t let your Policy Lapse

When times get tough or work slows down, it can be tempting to try cutting corners. But letting your auto coverage lapse during off-season or slow times can actually cost you more money.

Insurance companies often provide rate discounts for continuous coverage. And when you let your policy lapse, your rates can often be higher when you decide to pick it back up again.

And don’t forget the high price you pay if your work vehicle or employee isn’t covered in the case of an accident. With an estimated five-million accidents occurring every year in the U.S., your work truck is at risk every single time you pull out of your driveway.

7. Pay your Premium Upfront

Construction can be a cyclical-business, with busy seasons that are more profitable and slower seasons where money is tight. Want to make this a money saving advantage? Most insurance providers will allow you to pay your annual premiums upfront, and will give you a reduced rate as an incentive, which can be up to 10% off. When business is booming and cash is flowing in, pay off your premiums for the year and you won’t have to worry about making monthly payments in the slower seasons.

Your work vehicles work hard for you. Skimping or skipping on insurance coverage for them is not an option. But you can insure your trucks, vans, and other fleet vehicles and still save money. Don’t overpay for your coverage, and put some cash back into your business instead.

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7 Lessons Your Business Can Learn From Safety Month

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During Safety Month, the National Safety Council highlighted key ways a business owner can prevent or limit the risk of injuries in the workplace. By understanding different ways to prevent workplace injuries, a company can focus on growth and development for long-term goals. Here are seven lessons your company can take away from this year’s Safety Month campaign.

#1: Prevent Falls at Work

The National Safety Council pointed out that a key risk to the health of employees is the possibility of falling. An employee may fall for a variety of reasons, such as tripping over objects or slipping on a wet floor.

The best way to prevent injuries at work is focusing on limiting the risk of falls. When the floors are wet, a business should always put out signs to warn employees. It is particularly important when weather conditions cause the water on the floors. Employees should also be aware of potential hazards, like cords or objects, that cause falls by tripping.

Raise awareness about the risks and point out hazards with signs and proper training.

#2: Reduce Worker Fatigue for a Safer Workplace

Fatigue, or feeling tired, also play a role in workplace accidents and injuries. When your employees are tired, they cannot concentrate on their activities or tasks. For individuals working with heavy machinery, chemicals or other harmful objects, fatigue may result in serious injuries.

Limit the risk to your employees by requiring breaks within a set period of time. For example, require a break for a meal every four hours and short breaks every hour to keep your employees sharp and ready for the next task.

While you cannot change an employee’s habits and behaviors outside of work, you can ensure that they understand the importance of proper rest to maintain their health and limit the risks associated with fatigue.

#3: Prepare for Shooters

Active shooters, or individuals attacking your company, are a concern for any business. Since a shooter does not always have specific reasons for choosing a business and may attack your company for convenience or similar factors, you must prepare your employees for the possibility of an active shooter situation if you want to keep them safe.

Ensure that every employee knows the proper protocol for your company. Set up a clear series of actions for employees and management to follow when a shooter enters your business. While the details depend on the situation, employees should be aware of every exit in the building. You also want to ensure that your employees know to leave the building when it is possible or to close and lock doors when they are in a safe location and cannot reach an exit. Provide training in relation to active shooters and the appropriate steps based on the business and building.

#4: Focus on Ergonomics at Work

Not all workplace injuries occur in warehouses, manufacturing facilities, or construction sites. Even office workers are at risk from work-related injuries.

A common complication for employees working at a desk or in an office setting is lower back pain or injuries from their activities at work. When employees sit for several hours, you want to provide ergonomic chairs and tools to limit the risk of injuries from their environment.

Ergonomics allow your employees to keep up with tasks without taking risks with their health. Encourage employees to get up and stretch or move around regularly through their day.

#5: Consistent Safety Training is Critical

Safety training is essential for every business. The training you offer depends on the risks to your employees, but you want to provide training early in their career as well as continued training over time. Ideally, your employees should go through updated safety training every few years to ensure that they stay up-to-date with the latest ways to limit the risks of their job.

#6: Don’t Neglect Risk Management

While training is essential for safety and you can take measures to reduce the risks to your employees, you also need to recognize that every business has unique risks and potential challenges.

Clarify the risks to your employees by identifying the possible injuries or concerns that may arise. Some risks, like falling, occur in any business. Other risks, like injuries from mishandling chemicals or tools, apply to specific types of companies and businesses. Identify the unique factors that may contribute to workplace injuries and clarify the possible concerns to develop an effective safety training program.

No business is too small or too new to have a good risk management plan in place.

#7: Personalize Safety Plans

The most effective safety plans are personalized for your particular industry and specific business operations. Your safety plan should focus on the specific risks to your business and your employees. By focusing on a specific plan of action, your employees understand the steps to take when facing a dangerous situation. They have the tools to manage the situation without severe injuries or complications with personal health.

Safety Month is a good time to evaluate the risks to your employees and take steps to eliminate or limit potential problems. Business owners must take measures to avoid workplace injuries and ensure that employees have clear solutions when an injury occurs or when they face a situation that may result in injuries.

Eliminating safety hazards in your workplace can ensure your employees are kept safe and you don’t have any worker’s compensation insurance claims. If you need a quote on workers compensation, we can help.

Preventing Falls During Construction

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Falls are the leading cause of construction death. Don’t think a fall can happen to you? Every year more than 200 construction workers are killed and another 1,000 are seriously injured by a fall. Falls happen every day and they can be deadly.

Preventing falls is one of the National Safety Council’s four areas of focus during 2017’s National Safety Month, but fall prevention is critical for construction professionals every day.

The Money Saving Benefits of Preventing Falls

Fall prevention saves lives; but it can also save money for your construction business, too. Fall prevention standards are among OSHA’s top 10 most frequently cited standards, which means costly safety fines for those cited. Jobsite accidents can also drive up insurance costs or worse — lead to expensive lawsuits and medical bills for firms without adequate insurance protection.

Investing in safety training and equipment is a small expense compared to the potential for fines, increased insurance costs, loss of time, and potential litigations that can happen after an accident.

How to Prevent Construction Falls

OSHA recommends three steps to prevent construction-related falls:

Plan Ahead

Plan ahead to get the job done safely. Know what job needs to be done, how it will be done, and what safety equipment will be needed to complete the task. Take a page from some of the largest construction firms around with the best safety records: have a daily crew meetings in which supervisors go over the daily work plan and job-specific safety training for those potentially exposed to falls.

Provide the Right Equipment

The biggest fall risk in construction is to workers who are 6 feet or more above lower levels. These workers can be protected with the right safety equipment for the job. Beamers, retractables, rope-grabs, beam straps, butterfly anchors, concrete plunger anchors and retractable lanyards can all be useful tools that can save lives when used correctly. Employers should also provide the right equipment for the job, including the right kinds of ladders and scaffolds.

Train Everyone

Safety equipment saves lives… when it’s used correctly. Every worker should be trained on recognizing hazards on the job, the proper use of safety equipment, and identifying failures in equipment. Even a tiny tear in the webbing lanyard of a harness can lower its failure point up to 40%. Just providing safety equipment isn’t enough; it’s critical to be sure that equipment is maintained, is working properly, and is used correctly.

Protecting Yourself from Falls

Construction owners, managers, and supervisors have a big responsibility for fall prevention on the construction site. But contractors and workers should also take responsibility for jobsite safety. A Kimberly-Clark professional survey found that discomfort was the leading reason that workers were reluctant to wear PPE (personal protective equipment). The second most common reason was the belief that PPE wasn’t necessary for the task; workers had performed a task for years and never been injured. The third most common reason for not wearing safety equipment was that it was unattractive or ill-fitting.

Not wearing or using safety equipment because it’s uncomfortable, unattractive, or because you’ve never needed it before can put you at risk for a fatal fall.

A fall may cost your boss in fines, citations, or increased insurance costs — but it could cost you your life.

OSHA Tips to Prevent Falls for Workers

Fall protection guidelines for workers, to keep you safe from the most common causes of falls:

Prevent falls from roofs

  • Wear a harness and always stay connected
  • Make sure your harness fits
  • Use guardrails or lifelines Inspect all fall protection equipment before use
  • Guard or cover all holes, openings, and skylights

Prevent falls from ladders

  • Choose the right ladder for the job
  • Maintain three points of contact
  • Secure the ladder
  • Always face the ladder

 

Prevent falls from scaffolds

  • Use fully planked scaffolds
  • Ensure proper access to scaffold
  • Plumb and level
  • Complete ALL guardrails
  • Ensure stable footing – inspect before use (by competent person)

Prevent general falls

  • Understand your company’s written fall prevention plan
  • Participate in fall prevention training
  • Use fall-protection equipment, if required for the job
  • Be sure the equipment is right for the task, in good condition, and fits properly
  • Inspect fall protection equipment and devices before each use
  • Make sure that floor holes, open shafts, and riser penetrations are protected by sturdy guardrails or covers
  • Get specialized training before working on scaffolds, lifts, or ladders
  • When using scaffolds, make sure there is proper access, full planking, stable footing, and guard railing
  • Keep your feet firmly on the platform on a boom lift, and tie-off at all times.
  • Chose the correct ladder for the task, read the instructions, and be sure that the ladder is in good condition.
  • Check for surrounding hazards, stable footing, and the proper angle.
  • Identify skylights, and make sure they are properly protected.
  • Contact your supervisor if you see fall hazards or have any questions about fall prevention. Do not work until unsafe conditions have been corrected.

Create a Culture of Safety

Small to medium-sized construction firms may struggle with investing the time and money into safety programs, but the initial investment can pay off in the long run. When you create a safety-conscious culture at your company, you can prevent accidents, lower overall business costs, and save lives.

Make Safety a Priority

A survey commissioned by the International Safety Equipment Association of safety influencers in the heavy construction industry found the main reason workers chose not to wear personal protective equipment was because their employers don’t require or enforce usage. Your workers will prioritize what you prioritize.

Make Safety a Habit

Have daily crew meetings and briefs where job-specific safety measures are discussed. Make safety issues part of every meeting. Integrate safety awareness and practices throughout all aspects of the project.

Make a Top Down Commitment

An upper management commitment to safety as a top priority can be one of the most effective elements in any safety program. Safety concerns should come from upper management to lower management, safety directors to supervisors. The best way to create a culture of safety at your company is to be sure that everyone is committed to worker safety at every level in the organization.

What is Course of Construction Insurance?

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What is Course of Construction Insurance?

What is course of construction insurance?

By   Citizens General  Course of Construction Insurance

A construction crew wraps up work on a residential building late Friday afternoon. Unbeknownst to the general contractor, an oily rag was left in a bucket in the garage. The next day, the hot summer sun causes temperatures to rise, and the rag bursts into flames.

The project and all materials are destroyed.

Can you imagine the hit your bottom line would take if you had to do the whole job again on your company’s dime?

Course of Construction Insurance exists to insure buildings or projects under construction against the costs of repair or replacements in the event of an accident just like the one mentioned above.

Course of Construction Insurance (COC), also known as Builder’s Risk Insurance, is designed to protect owners and contractors from the devastating impact of fires, floods, vandalism, theft, and other unwelcome accidents to a construction project.

Who Benefits From A Course Of Construction Policy?

COC provides both owners/developers and general contractors peace of mind.

Owners are assured their contractors will have the funds to rebuild in the event of a loss, and contractors are assured they will have the costs available to start over in such an event.

Since course of construction insurance covers a number of parties, it can be obtained by the owner, contractor, engineer, or project manager. The party responsible for obtaining COC may be specified in the construction contract itself. The owner and/ or general contractor typically obtains the policy, and are covered as “named insureds” who are protected from paying for losses out of their own pockets.

Subcontractors are included on a COC policy as “unnamed insureds,” receiving the same coverage benefits regardless of whether the policy was taken out by an owner or contractor.

Both named and unnamed insureds on a COC policy are protected from legal suits if they happen to be the party responsible for the loss, as an insurer cannot bring action against someone covered by the same insurance policy.

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What is Covered with a COC Policy?

If vandals break into your construction project and cause damage to the property and the supplies that were there, you won’t have to pay out of pocket to replace your materials.

A COC/ Builder’s Risk policy covers the project property, including the materials and supplies necessary to complete the project.

In the wake of damage left behind by a flood or earthquake, COC will cover expenses incurred to remove site debris and any potential demolition needed to repair damaged areas of the structure.

The full value of a completed project covered in the policy could also include extra work fees for architects and engineers, the costs of barricades and additional site structures such as temporary buildings, and even soft costs such as legal fees or premiums.

Risks Covered by COC

Course of construction is a policy that truly protects against unforeseen accidents. The typical risks covered include:

  • Fire
  • Lightning
  • Explosion
  • Impact by aircraft or vehicles
  • Riot, vandalism and malicious acts
  • Windstorm, hail and rain
  • Burglary and theft
  • Collapse
  • Subsidence

Risks that are typically excluded from these types of policies may include mechanical breakdown due to negligent operation; loss due to faulty design, material or workmanship; wear and tear; or inherent vice: a problem or quality incidental to the property itself which brings about its own loss or destruction.

While it protects many parties from many risks, Course of Construction Insurance is not a catchall.

It does not cover a contractor’s tools and equipment, be they owned, leased, or loaned. Some policies also exclude soft costs, i.e. the labor costs to redo the work.

COC also doesn’t cover motor vehicles. Combining coverage for Tools and Equipment and Commercial Auto with your COC policy is a better way to protect your assets as well as the construction project from unforeseeable, costly events.

You can’t control the weather, you never know when a vandal will strike, and the actions of your subcontractors could always lead to a loss; that’s why contractor’s reduce their risks with a policy for Builder’s Risk.