[Infographic] The Biggest Green Building Trends

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What’s trending on the green building scene in 2016? If you want to stay ahead of the competition, and be ready for the requests of homeowners this coming year, sustainable and eco-friendly building better be at the top of your list. More and more residential and commercial construction projects are “going green,” bringing you more opportunities to grow your business and send your profits soaring through the solar-paneled rooftops.
Check out this Infographic for all of the latest green building materials and trends your clients will be clamoring for in their remodels and new home construction in 2016. Then keep on reading for more information you need to know to keep your business in “the green” next year.

Net Positive Energy Homes

Zero used to be the hero when it came to green building; Zero Energy Homes that produced enough energy to make up for what they consumed. But in 2016, Zero Energy moves aside as Positive Energy

Homes set the new gold (green) standard for energy efficiency. Positive Energy homes use solar power to produce more energy than they consume, with excess being sold back to the grid, or used to power things like electric vehicles, saunas, yard equipment, and power tools.

Smart appliances are helping consumers get even closer to net-zero energy use. According to the U.S. Energy Information Administration, appliances combined with lighting and electronics use up to 34.6% of a home’s overall energy. Look for Energy Star certified appliances to reduce energy use in the home.

 

Building trends

Water Reuse and Supply

Water efficiency and conservation becomes even more important as some states continue to experience record breaking droughts. Look for water conservation fixtures, rainwater harvesting, greywater reuse, efficient irrigation technologies, and drought resistant landscaping to be big next year.

Drought Resistant Yards

Be prepared to hear the word Xeriscaping even more in 2016 as drought resistant yards become even more popular. Xeriscaping is a creative way of landscaping that focuses on conserving water usage. Water conservation in landscaping starts at the design level, and includes the right soil, local plants that are drought resistant, and limited or no grass areas.

According to Rodale’s Organic Life, well-designed drip systems use at least 30 percent, and in some cases 50 percent, less water than other methods of watering. Drip irrigation systems that slowly deliver water directly to the root zone of plants, without wasting it on nearby areas, will continue to be on trend. Drip irrigation will be in even higher demand in drought states such as California.

Health Conscious Building

Commercial building design, and re-design, will focus on Health Conscious Building as corporations seek to improve the mental and physical well-being of their employees. Health conscious building design may encourage employees to take the stairs, rather than the elevators, or provide other opportunities for exercise. Standing desks and treadmill desks are a health conscious design trend, as is on-site sky gardens and vertical gardens.

Cool Roofs

The roofing industry will continue to get greener with cool roofs and green roofs in both the residential and commercial sectors. Cool roofs absorb less heat and reflect sunlight away with special tiles, and reflective paints. This keeps the entire building cooler and a more constant temperature, reducing energy usage. Green roofs have a layer of vegetation on top, and these rooftop gardens reduce the temperature of the roof and surrounding air through evapotranspiration. Green roofs not only reduce energy usage, they also reduce air pollution and greenhouse gas emissions.

Nanotechnology

Green building starts on the molecular level with exciting new innovations in Nanotechnology. Nano insulation is non-toxic, and the insulating coatings are so thin and clear that they appear to be invisible. Nano insulation is about 30% more efficient than conventional insulation materials.

Nanocoating paints are a great alternative to traditional paints because of their lower carbon footprint to produce and maintain due to their corrosive resistant and self-cleaning properties. Nanocoatings can be painted on to roads, bridges, and buildings. And nanotech solar technologies will allow solar powered cells to be integrated into windows and awnings, not just rooftops.

Sustainable Flooring

Inside a green home, sustainable flooring options can be attractive, eco-friendly, and contribute to the overall health of the home. Innovative flooring options include carpets made not only from recycled carpet fibers, but also from recycled plastic water bottles like the Everstrand Carpet from Mohawk Flooring. Mohawk recycles over 3 billion plastic bottles each year to make their environmentally friendly carpet.

Stunning floor surfaces made from eco-friendly materials such as bamboo, cork, salvaged wood, and recycled materials such as glass, ceramics, stone, and even rubber can be used in bathrooms, kitchens, and all over the home. Low- and no-voc sealants will keep bathrooms and kitchens water-tight, while remaining environmentally friendly.

Recycled Countertops

One of the newest trends for countertops is breathing new life into old materials. Recycled glass, steel, aluminum, and even paper countertops are eco-friendly and compliment the design style of any home. Reclaimed and bamboo wood countertops provide a rustic warmth to kitchens, and can stand up to years of kitchen abuse. Bamboo countertops are not only eco-friendly and sustainable, they also contribute to a healthy home; bamboo is naturally resistant to mold and bacteria.

A Return to Steel

Steel is not a new building material, it’s been used to frame buildings since the 1800s. But steel is making a big comeback as a sustainable building material; all steel products can be recycled again and again. According to the Steel Recycling Institute, a 2,000 sq foot two story house can be framed from the steel recycled from six cars. It would take nearly an acre of trees to produce the wood needed to produce a comparable wood frame. And steel isn’t just for framing, either. Recycled steel countertops, furniture, and tiles can be used throughout the home, as well.

Down Sizing

The Tiny-house trend has taken the nation by storm, and one of the reasons people are choosing to build small these days is to reduce their carbon footprint and live more sustainably. Inhabit extols the virtue of a compact space, stating that a smaller home takes less materials to build and requires fewer resources to maintain comfort.

If you aren’t using green building materials and sustainable practices in your construction business, you are missing out on an opportunity to reach an ever growing customer base that includes both residential homes and large commercial practices. Keep an eye on the green trends that are shaping up to be big in 2016, and your construction business (and customers) will thank you for it.

Why Cheap Contractor Insurance Could Actually Cost You BIG

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When you run your own construction business, you need to mind your cash flow. More available cash means more opportunities to reinvest in your company, more emergency funds, and more capital for growth. So you keep an eye on your expenses, and save wherever you can. But skimping on your contractor insurance might be a big mistake. Going for the cheapest or bare-bones insurance coverage could actually cost you more than you ever imagined. Here are the hidden costs of “cheap” insurance.

Low Premiums could come with Big Fees

A broker or insurance carrier may lure you in with promises of rock bottom premium rates, then charge you for every single certificate or additional insured endorsement. These requests could go for as much as $150 a pop. Suddenly, the discount premium you were promised is costing you big. Read the policy and understand exactly what you are getting. The low premium rate may come at a big cost down the road.

You could be Underinsured

What exactly are you getting for your low, low cost insurance premiums? Bare-bones coverage leaves you exposed, and your business at risk. This is a big problem for many business owners; as many as 75% of U.S. small businesses are underinsured. And, if faced with an uncovered loss, most of these business owners will never recover.

Consider this: after a major disaster, 4 out of 10 small business owners are never able to reopen their doors. Will your cheap policy help you recover after a disaster? Read your policy and make sure you understand exactly what coverage you are paying for.

Your Claim Payouts may take too long

As a contractor, time is of the essence. Let’s say you are in an auto accident in your work truck. The truck takes a beating, and needs to go to the shop for repairs. You have to rent a vehicle to transport you and your tools to the job site, and you pay for the rental out of your own pocket so you can get back to work.

The longer it takes for you to get reimbursed for your claim, the more of your business cash flow goes down the drain. You hadn’t anticipated this rental expense as part of your project costs, and now your profits have been minimized. And you are still waiting for the reimbursement check to come.

You may not even be Insured at all

Terrifying but true: you may not even have insurance coverage at all. The U.S. Government Accountability Office has identified more than 144 fake insurers nationwide, leaving more than 200,000 policyholders holding the check for $252 million in unpaid claims.

When you go for the rock bottom price, you may be getting even less than what you’ve paid for: you may be getting no insurance coverage at all. Research your provider before purchasing a policy. Your state’s department of insurance will provide information such as an insurance provider’s status and complaint history.

While you are doing some due diligence, make sure the broker you’re purchasing through is reputable as well. Unfortunately, there have been instances of brokers taking premium payments to fund their own lavish lifestyles, instead of forwarding the funds to the carrier to purchase a policy. These crimes, while rare, leave victims uninsured and exposed to serious liability risks. Every industry may have some bad apples, and that includes the insurance industry, too.

The Devil is in the Details

We know that reading through an exclusion section of an insurance policy doesn’t sound very exciting, but the devil really is in the details sometimes. To keep premiums low and attractive, carriers have sliced and diced coverage, and that may include an exclusion that impacts you.

Are you a painter who routinely sprays the exterior of buildings? Make sure your policy doesn’t contain an overspray exclusion.

Are you a plumber that solders quite a bit of pipe? Your policy would be lacking if it contained a heated device exclusion.

The insurance policy that comes at the rock-bottom premium price may seem like a great deal, but not when your claim gets declined because of a policy exclusion.

How to Save on your Contractor Insurance Rates

What’s a construction business owner to do? You don’t want to overpay for insurance, but you want to protect your business and know that you can count on your provider.

There are ways you can save on your premiums, so you can carry quality insurance coverage and still put cash in your pocket.

  • Increase your deductibles to lower your premiums.
  • Pay your premiums up front.
  • Combine multiple policies with the same provider.
  • Maintain consistent coverage.

(Psst: We’ve got even more tips on how get lower rates on your contractor insurance, so read our blog post for more details on this topic.)

A smart construction business owner knows the difference between a good deal and a too-good-to-be-true deal. Don’t put your business on the line in order to save a few bucks on your contractor insurance policies. Sometimes, you get what you pay for, and the rock-bottom price could end up costing you much more in the long run.

Builders Risk: What Profitable Contractors Know

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Sometimes the difference between a contractor who can successfully grow a profitable company and one whose business flounders is a little bit of know-how. A savvy contractor knows how to handle the risks associated with a project, and how to protect himself with the right insurance policies. Profitable contractors know a thing or two about builders risk insurance, and how to get the most out of their policy.

Builders Risk is Better for Bids

Who is responsible for the policy, the owner or general contractor? Without knowing who will be supplying the insurance coverage, it’s almost impossible to provide an accurate bid. If the contractor is supplying the coverage, is he also paying the premiums, retaining the deductibles, and handling claims?

An experienced contractor knows that these important discussions need to happen in pre-bid meetings, and clarifications need to be provided in bid documents in order to remove uncertainty from the bid process.

“Master” the Owner-provided Policy

In the event that an owner is providing the policy, a contractor who wants to protect his business assets will need to take some additional steps, such as obtaining a copy of the owner’s policy.

You want to make sure you, and any of your subcontractors, are named insureds on their course of construction policy. Review the deductible amounts, and always make sure that the policy is in effect before you or any of your subs set foot on the project site.

Some contractors prefer to secure “master” policies to protect themselves from losses due to an owner-provided policy. By carrying a master policy, you are able to offer a ready-made builders risk policy to owners.

If the owner refuses and chooses to get their own policy, you can use your policy to fill in the gaps of the owner-provided policy if necessary.

Don’t forget to consider Soft Costs

A course of construction policy protects your project from the unintended consequences of unforeseen events. But did you know that it can also protect you from some not-so-obvious losses, such as business interruption losses and soft costs?

Delays in construction might cost you overtime wages to employees, additional interest on project-related financing, or added rental fees for equipment that is not being used during repairs. These “soft costs” can be insured, but they are not always included in a standard policy. Adding a soft cost endorsement to your policy to provide extra protection to your business.

Remember: One size does not fit all

Different projects will require different course of construction coverage. Don’t fall into the trap of thinking that one policy is a good fit for every project you take on. A renovation project, for example, should have builders risk coverage for both the replacement cost of coverage of the existing structure and the new construction. For new construction, your policy should cover site preparations, excavations, foundations, underground pipes, scaffolding, construction forms, and temporary structures that would be expensive to replace if something unexpected occurred.

The key to running a successful, profitable construction company is protecting yourself from the risk of big losses from unforeseeable events. Many contractors may utilize builders risk insurance to protect themselves, but the most successful contractors will know how to take this coverage and maximize it to fully protect the business they’ve worked so hard to build.

Builders Risk Insurance Quotes

5 Risks Savvy Contractors Know to Avoid (and You Should Too)

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5 Risks Savvy Contractors Know to Avoid (and You Should Too)

Risk. If you work in the construction industry, it’s a word you know well.

Everything you do in your work as a contractor has an inherent risk factor, from your bid to completion of the project.

In construction, risk is the probability of a loss occurring. You may think your general liability policy is enough to safely protect you, but you may be surprised where additional losses might pop up.

Savvy contractors know all the major risks, and how to avoid them.

Risk #1: Theft or Vandalism

You need your tools, equipment, materials, and supplies to get the job done.

No matter how carefully you maintain your tools, or how cautious you are about securing equipment and materials, it is almost impossible to protect these assets 100%.

Maybe one of your employees accidentally takes a tool home with him, and it never returns to the site.

Whether it is accidental or intentional, theft happens.

And so does vandalism.

Replacing tools and equipment that have been stolen or damaged can eat away at your profits on a project.

Risk #2: Other People

One of the biggest safety risks on your project may not even be one of your guys.

Interference from people outside of your immediate sphere of influence is tough to predict.

How many times has a homeowner’s neighbor come over to check out the new remodel project?

You know the type…

Nosey Ned pretends to take the dog out for a walk so he has an excuse to wander to the project site. He likes to tell you all about the upgrades he has made in his own home, give you some advice on how to do your job right, and then…

He trips over an extension cord connected to a power tool and falls down.

Now, Nosey Ned has lawyered up and expects you to pay for his curiosity and clumsiness. Third-party lawsuits can cost you big-time. Even if you aren’t found liable in court, the cost of a lawyer and all of the fees could be huge.

Risk #3: Data Loss

Welcome to the age of construction technology.

The conveniences of smartphones, tablets, and software programs to your business can mean increased convenience and profitability for your business. You use accounting software, an app for finding bids, a system for tracking leads, and even a project management program that you access on your tablet.

The computer equipment, data systems, and information storage you use daily makes you more efficient and more profitable.

What would it cost you if something happened to your computer equipment and data? Aside from the simple cost of replacing these valuable (and usually pricey) tools, data breaches and stolen equipment leave your accounts, and your client’s personal information, vulnerable.

Risk #4: Stormy Weather

Rain. Hail. Winds. Unexpected and severe weather can happen in an instant.

High winds can uproot trees, sending them crashing through your remodel project. Lightning can strike. Hail the size of golf balls can pelt down and damage materials and supplies. Severe rains can turn to floods.

It can be hard to think about the potential risk of a flash flood when the sun is shining, or to imagine the damage that high winds can bring on a mild, spring day.

But unexpected weather extremes, and even natural disasters, can happen without warning.

If one of these events happened and caused serious damage to your project, materials, and supplies, you could be facing the repair and replacement costs out of your own pocket.

Risk #5: Yesterday’s Project

As a contractor, you face a unique risk that not many other professionals have to worry about. Even after you have completed a project, it still continues to present a risk for you and your business.

If a project you completed months, or even years, ago injures someone because of a construction defect, you could be left holding the bill.

How to be savvy about protecting your business from construction risks:

If any of the above scenarios sounds like it could bring a huge loss to your business or personal assets, don’t panic.

You can protect yourself from all of these risks.

Here’s how contractors in-the-know avoid them:

  • Protect your tools and equipment on the way to a jobsite with tools and equipment coverage.
  • Protect your business from lawsuits and legal fees with general liability coverage.
  • Protect your computer equipment and data with inland marine coverage.
  • Protect your project, materials, and supplies from unexpected weather and disasters with builders risk coverage.
  • Make sure there are no lapses in your insurance coverage. Many policies write in a “prior work” exclusion, so if you are switching carriers to save money, it may cost you in the end.

The most successful contractors didn’t get that way by worrying all day. They plan proactively to protect their business from risks. Calculate risk, have a great plan for managing that risk, and cover yourself where you can.

Builders Risk Insurance Quotes

What Kind of Insurance Do You Need for Your Landscaping Business

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Lawn care and landscaping contractors have special considerations when it comes to running a business. Your clients count on you to keep their homes, offices, and city streets looking pristine, and that means you provide a service on their turf. Running a business that provides a service exclusively on your client’s property means you are in the unique position of having a higher risk for accidental property damage.
Your landscaping tools and equipment are not located on a specific job site with a safety fence around it to keep the public out. In most cases you are out and about with the public all around you as you work. The specialty equipment needed for your landscaping or lawn care business brings with it an added risk for injuries to your employees or third-parties.

To protect your business, you will need insurance custom-tailored for landscaping professionals. Here are some of the landscaping insurance options you should consider for your business.

General Liability—Landscaping Insurance Must

Landscaping and lawn care businesses have their own unique risks to property and person. One of your employees accidentally destroys a sprinkler system. Another damages a residential fence. A person is injured by debris from a piece of your equipment that malfunctions. Each of these incidents could lead to a lawsuit that could cost you your entire business.

With general liability insurance, your policy could cover the cost of repairs, legal fees, and any damages that have to be paid. Even a frivolous claim could cost your business millions if a judge decides it has some legs. General liability insurance is there to protect you from just that.

Workers’ Comp

Your employees handle potentially dangerous equipment in hazardous circumstances daily; it is part of the job when you run a landscaping business. Even something as small as a bee sting, or repetitive motion from mowing and other yard maintenance tasks could lead to an injury on the job.

Workers’ compensation insurance protects your landscaping business by providing medical treatment, and payment for lost time or disability to your employees in the event of an injury. With an adequate policy, your business can financially cover the unexpected medical expenses, court costs, or settlements that could arise from an accident.

Workers’ comp replaces legal liability with no-fault insurance, simultaneously protecting your business and providing for your employees. While laws vary from state to state, most states require that you carry workers’ compensation if you have W2 employees.

Inland Marine

Inland Marine insurance (aka tools and equipment insurance) may not sound like something one would add to their landscaping insurance coverage, but don’t let the name confuse you. Inland Marine is designed to compensate businesses if their goods are lost or damaged during transit.

Landscaping businesses and lawn care professionals regularly transport equipment, tools, and supplies as they service their clients. Inland Marine protects your mowers, sheers, weed eaters, and other valuable tools of the trade against accidental loss, theft, or vandalism while they’re in transit from one job to the next. Inland Marine even covers digital information and data, including lead-tracking data, accounting software, and other electronic assets.

You need your tools and equipment to service your customers and grow your business. If your equipment is stolen, lost, or damaged, Inland Marine insurance is your means to replace it.

Commercial Auto Insurance

Your personal auto policy does not cover any vehicles you use for your landscaping business purposes. You’ll need commercial auto insurance to protect you from devastatingly expensive property damage, medical expenses, and legal costs in the event of an auto accident. Your commercial auto policy (also called fleet insurance) can even supplement the personal policies of your employees if they use their own vehicles while doing your business.

Commercial Umbrella

What if you had an accident, say in your work truck, and after all was said and done, the settlement on the accident was $600k. Now let’s pretend your insurance limit on claims is only $500k. You would be responsible to pay the extra $100k. Would you be prepared to sell off your business assets to pay for it?

When you want extra peace-of-mind, Umbrella Liability is a cost-effective way to expand your landscaping insurance coverage. Umbrella Liability allows you to raise the limits of your General Liability policy, kicking in to cover the additional amount past your General Liability limits.

Don’t underestimate the random accidents that happen in business. Contact Citizens General to find out which policies are right for your landscaping business, and protect the assets you need to do your job.

Course of Construction: Protecting Your Project While It’s in Progress

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A new construction project is a daunting endeavor. Whether you’re a first time home builder, an established general contractor, or a large commercial developer, the decision to tackle a large scale project is a huge risk. There are so many things to think about regarding permits, budgets, materials, construction timelines, payroll, etc. and the list goes on.

The last thing you want is something happening to the project before it’s complete. What if your materials are stolen? What if (heaven forbid) a fire breaks out and ruins the new framing that was just completed? That’s where a course of construction policy can protect your investment.

What is a Course of Construction Policy?

A course of construction policy, also known as a builders risk policy, is given away in the name: it protects your project while it’s in the course of construction. From the first moment you start to lay the foundation, to the interior finish work wrapping up the project, this insurance has your back for those worst case scenarios.

What Does a Course of Construction Policy Actually Cover?

This type of policy ensures that you won’t have to come out of pocket to replace those materials that are to become a part of the finished home or commercial building. This includes foundation materials, rough lumber, finishing trim, and everything in between. Coverage is also extended to material in storage waiting to be put to use and material in transit.

Do These Policies Only Cover New Construction Projects?

While most policies are written to cover new construction, builders risk can also be written to cover existing projects and/or residential and commercial additions. Coverage can even be extended to the existing structure so if something happens in the new section and spreads to the existing section, you’re covered.

Construction Insurance

Landscaping Business Risks You Need to Know About

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There are many reasons that you may have started a landscaping business: you love working outdoors, you have a knack for keeping things green, or you’ve always dreamed of building a business on your own and working for yourself.
Whatever the reasons you started your business, there is one thing that can quickly stop it in its tracks: an inability to spot risks. Once you are a business owner, every risk can mean a big financial loss, a lawsuit, or even bankruptcy.

If you want your landscaping business to be a success, you will need to learn how to see a risk coming from a mile away, and know the right way to protect everything you’ve worked so hard to grow. Here are some of the risks unique to landscapers, and ways you can hedge against them.

Weather Risks

When you work outdoors, the weather can make or break your business. Weather conditions can slow, delay, or even stop your work altogether.

  • Extreme weather such as heavy rains, winds, and floods can damage materials.
  • Heavy hail can destroy delicate plants.
  • High winds can uproot trees and bushes.

Carrying adequate landscaping insurance is the only way to protect yourself against mother nature. When extreme weather threatens your materials, you can protect yourself against the high costs of replacing them.

Injury on the Job

You couldn’t run your business without customers who want your service, or without the help of a few good employees on your side. Unfortunately, the more people involved on site, the more risks you take of an injury occurring.

Employee Injuries

The equipment you need to get the job done is heavy, sharp, and dangerous. One moment of distraction from an employee can mean loss of blood, limb, or even life. And that’s not all…

  • Hot weather conditions can lead to heatstroke and dehydration.
  • Heavy materials improperly lifted can lead to back injuries.
  • Insects can bite and sting.
  • Chemicals can be accidentally ingested, inhaled, or get into delicate eye tissue.

Any full-time, part-time, or seasonal employees should always receive proper training on the safest way to perform their jobs. This includes the right way to use equipment, lift and move materials, use dangerous chemicals, and the proper protective gear and clothing. But even the best safety training is not a foolproof way to protect against risk. If you have even one employee, then your landscaping insurance policies should include a workers’ comp policy, as well.

Third-party Injuries

The same equipment, materials, and chemicals that you use in your landscaping business can pose an injury risk to homeowners and other third-parties, too.

  • Sharp tools and dangerous equipment can pose a safety threat to curious children.
  • Chemicals can lead to illness or injury.
  • Uneven ground can pose a risk for tripping and falling
  • Certain plants may be toxic to children or animals.

You can safeguard homeowners and other third-party people to some extent while performing your job. Keep equipment and tools securely locked up and secured when not in use. Tape off areas where holes are being dug. Choose non-toxic materials if children or animals will be using the outdoor space. Talk to homeowners about any chemicals you plan to use, and how they can best avoid coming into contact with these chemicals.

To fully protect your business from the possibility of a lawsuit from a third-party injury, be sure that your general liability insurance is maintained and updated regularly. That way, in the unfortunate event that someone is injured as a result of your business, you won’t have to pay out of pocket for costly court fees, attorney fees, or expensive judgements against you.

Equipment Loss and Damage

Without your tools and equipment, you wouldn’t have a business to run. Plants couldn’t go in, hedges and trees couldn’t be trimmed, lawns couldn’t be cared for. Without your tools, you would be seriously up a creek without a paddle. What are some of the risks that could impact your most important business assets?

  • Employees can damage or misuse equipment.
  • Equipment can be stolen from an unsecure trailer, truck bed, or toolbox.

Your tools and equipment can be lost or stolen when being transported to the next job site. Even the best intentioned, well-meaning employees can misplace or damage a tool. You can protect your equipment by marking each piece well with the name and phone number of your business; having a check-in/ check-out system for equipment; and properly securing all tools in locking boxes. Lastly, your landscaping insurance will provide the final safety net for your most important assets. A tools and equipment policy (also called inland marine) will be there to protect you from loss and damage of the very things you need to get the job done.

Auto Accidents

When your office is the great outdoors, you put a lot of miles on your truck getting from one jobsite to another. Every time you hop in your vehicle, you put a lot on the line. An estimated 15,000 motor vehicle crashes happen every single day. And no matter how good a driver you are, you can’t always protect yourself from the many distracted (or just plain bad) drivers out on the road with you.

  • Someone else could get injured in an accident while you are driving.
  • An employee could get injured in an accident while driving your truck.
  • An employee could get injured driving their own vehicle while doing work for you.
  • Your work truck could get stolen.
  • The trailers, equipment, and tools you use could get damaged in an accident.

You may think that you are protected from road risks with your personal auto insurance, but the plain truth is that a personal policy won’t protect your business vehicles. Only a commercial auto policy can protect the trucks, vans, or other vehicles that you use for work purposes, protect your employees while driving them, and protect your employees in their own cars if they are driving for your business.

Not running your Business like a Business

When you are just starting out your landscaping business, there can be a steep learning curve and a couple of shortcuts involved. But when you are running a business, some shortcuts just shouldn’t be taken. Even if you just have a single mower, a free pack of business cards, and one truck, your business should be treated like one.

  • Written contracts may protect you from misunderstandings, liabilities, and lawsuits.
  • Landscaping insurance policies protect you from major losses from lawsuits, theft, accidents, and injuries.
  • Business licenses and permits protect you from fines, and get you more jobs.

Play by the rules, and always treat your business like one.

Most of the risks that your business faces can be covered with the right contractor insurance coverage. Just one incident, injury, or lawsuit could be so costly that it could put you out of business permanently. Protecting your landscaping business with the right insurance and a little know-how can help your business continue to bloom.

5 Secrets to Building a Profitable Landscaping Business

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You can drive your landscaping business to new heights and greater profits. Even if you are a very small-scale operation, these five things can help you succeed. The key to making your landscaping business profitable is to start thinking like a bigger operation.
Here are five ways to increase your profits this year:

1. Encourage Employee Growth

Whether you have one employee or a dozen, nurturing them and helping them grow will benefit you in the long run. When you encourage the professional and educational growth of your employees, you make the people invested in your business more valuable.

Ways to encourage employee growth:

  • Career development assistance
  • Encouraging certifications or skilled trade programs
  • Providing on-the-job training

Why should you invest in the growth of your employees? To keep the best ones with you. Maybe one of your employees wants to go to school part time to learn more about business, and another wants to join a landscaping certification program. You have two options:

You can worry that these employees will eventually leave you to work for the competition or start their own businesses, and refuse to work around their schedules.

Or…

You can show them you’ve got their back by accommodating their programs and school schedules, and offering financial support or incentives.

In one of these situations, you will end up with an employee who feels invested in your company’s success, and has the new skills and education to help your business grow and succeed.

Which one do you think will result in more profits in the long run?

2. Measure Everything

Do you track productivity on the job? Measure your ratios of leads to closed sales? Track referrals and repeat customers? The more metrics you can track and measure in your landscaping business, the more opportunities you have to increase profits.

What are some of the metrics you should measure and track?

  • Sales – Track your ratio of leads that become closed sales
  • Clients – Customer surveys are a great way to gauge customer satisfaction. Client turnover can also be measured, as well as services sold to each client.
  • Production – Non-billable hours where you pay your employees but aren’t making any profits, overtime, and other metrics that impact your costs should be tracked and measured.
  • Balance Sheets – Keeping track of the average outstanding accounts receivables (money owed) is important, and can also be an indicator of client satisfaction.
  • Cash flow – Profits and cash flow are not always the same thing. Keep track of the operating cash flow you have monthly or even weekly. After you make all of the payments for inventory, labor, and investments, and collect from all of your clients, how much cash is your business bringing in?

3. Practice Risk Management

Risk management protects your business from losses, but did you know that you can use this practice to increase profits, as well?

When you practice good risk management, you will help your business continue to operate with better cash flow and stability. When your financial reports reflect this effort, it is easier to get credit and investors to help you grow.

“The rewards of risk management are all linked together: good cash flow leads to stability, which leads to good credit, which leads to longevity.” – Small Business Association

Using risk management practices, which can include protecting your landscaping business with the right contractor insurance policies, will protect your business from loss and help you grow.

4. Invest in Website Development, SEO, and Social Media

You may have built your business up through word-of-mouth and referrals, but if you are going to experience true growth and profitability, you will need to invest in your web presence. And it’s not enough these days to throw up a brochure-style templated website and think leads will come your way, either.

Creating your website is just the beginning.

Your website, as well as your social media accounts, need to be optimized for search engines. This ongoing practice is known as SEO. Customers are searching online for your services, but if you don’t have a great website that is optimized and regularly updated, they probably won’t find you. This task is an important part of building your business, and an investment worth making if you want to stay competitive today.

5. Run Lean

Running lean doesn’t refer to your current exercise program. Lean methodologies are a systematic method of identifying and reducing waste within your business.

It’s all about efficiency.

When you run lean, you create more value for your customers with fewer resources.

Here are some areas that you may be able to lean-out in your business:

  • Transportation – is there unnecessary movement of parts or materials between processes?
  • Waiting – are there people waiting for a work cycle to be completed?
  • Overproduction – are you producing more, or faster, than the customer is demanding?
  • Inventory – do you have materials and equipment that are not needed or used?

Lean methodologies, tracking key metrics, investing in your web presence, practicing risk management, and helping your employees grow with your company may sound like a business plan for a major corporation, but they apply to the success of your small business, too.

Think big, and you can see big profits in your future.

7 Secret Habits of Successful Contractors

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The most successful contractors didn’t get that way by accident. They know how to use the tools and information available to them to make the best decisions for their projects and business.
Want to know how they maximize efficiency and confidently steer their business to better projects and improved profits?

Read on…

Here are seven habits of successful contractors you can use to help propel your company toward greater success.

1. They are Early Adopters of Technology

Construction may be an age-old art form, but the most savvy contractors know that adopting modern technology is crucial to success.

Today, mobile devices such as smartphones and tablets allow contractors to stay connected and communicate instantly.

Project management software is easy to use, and business management software helps you with timecards and accounting.

Construction apps are revolutionizing the way contractors work with improved bidding, communication, collaboration, and even faster calculations… right in the palm of your hand.

Amazing trends like 3D printing continue to change the construction game. Technology can make you more efficient, productive, and eliminate unnecessary errors. Embrace technology and watch your business soar.

2. They Know Their Personal Assets are On the Line

Savvy contractors know that a judgement against their business can affect their personal assets.

If your business is fined with a judgement that exceeds your business’ available funds, your personal assets are fair game. Failing to implement good risk management processes can impact far more than your business.

3. They Always Read the Fine Print

Contractual risk can occur if you don’t read and understand what is in your contract.

Failing to understand the terms of your contract will not save you from litigation. Successful contractors work with attorneys to draft contracts and waivers that will hold up in court, and they back these up with the right business insurance policies.

4. They Use Insurance and Surety Bonds Wisely

There are a number of risks to a construction business that can be minimized with the right insurance coverage and surety bonds.

They protect their business assets, personal assets, tools and equipment, employees, and vehicles with coverage policies that can shield them from lawsuits, accidents, and disasters.

The contractors who are well protected and well bonded are the ones who consistently win bids.

5. They Outline Safety Policies, Processes, and Procedures

Safety is a huge risk that all contractors and subcontractor must face daily. Your employees are at risk from working conditions, materials, supplies, and even tools and equipment while on the project.

If your employee is harmed while on the job, they will come to you for help with medical expenses. You could also face legal action and fees if you have failed to provide a safe working environment. Workers’ comp insurance, specific safety processes, and agreed on procedures help successful contractors avoid these sad safety scenarios.

6. They Expect the Unexpected

Despite preparation and planning, disasters do strike. And they’re rarely foreseeable.

The most successful companies have a plan in place for when they do. Fires, floods, earthquakes, vandalism, and theft can happen on any project you are working on.

Plans for natural disasters are just as important as workplace injury plans. Successful contractors know what the plan is for these situations, who to contact, and what process to follow.

Course of construction coverage keeps projects on pace in just these situations, and keeps contractors from paying out of pocket to replace materials lost or damaged.

7. They are Proactive

A successful contractor does not wait for a risk to happen before acting on it. Risk management involves walking a fine line between losing bids, or losing your personal and business assets.

You cannot avoid all risk, and you cannot work every possible risk situation into a contract. You can define the risks you are likely to encounter in your business, prepare a plan to mitigate them, and choose the right policies to protect yourself as best you can.

Risk management is the one thing that sets a struggling contractor apart from the truly exceptional and successful.

How Does Course of Construction Protect Remodeling Contractors?

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You are halfway through completion on a renovation to a residential home. Gale force winds send giant trees crashing down, torrential rains flood the area, and hail strikes the earth with the force of a hammer. In the morning, the damage is done. Your remodel has experienced extensive damage and your materials left on site are ruined.
Worst-case scenario, a situation like this one will cost you.

You will have to pay your employees to clear debris from the site, and to repair damage done by the wind, hail, and water. Once you have cleaned up the mess, you will need to replace the raw materials that were damaged. The profit margin for this project dwindles further and further as you repair and replace.

One unforeseen storm, unexpected and out of season, has caused this project to be a complete loss for you.

You can’t walk away.

You have a contract and performance bond that assures you will complete it.

Now imagine a happier scenario:

The morning after the storm, as you stand in the midst of the damage in ankle deep water surveying the ruins of your project, you pick up the phone.

Dialing your insurance company, you call in a claim.

The damage is covered under your Course of Construction policy. The costs of clearing debris, replacing materials, and getting back on track with your project will not come from your pocket.

You calmly explain to the homeowners that, despite being a bit behind schedule, the project will continue to move towards completion. The claim is processed quickly and you get back to work on your project.

For remodeling contractors, course of construction insurance can save the day.

When remodels and renovations are your specialty, you know that anything can and will go wrong. Vandalism, theft, natural disasters, and accidents that happen to your project while you are working on it can either ruin your chance of profitability on your remodel, or they can be a small bump in the road.

Course of Construction (also known as Builders Risk) policies reduce your financial risk in one of these unforeseen circumstances.

Builders Risk protects you from worst-case scenarios such as:

  • Fire
  • Wind
  • Burglary and Theft
  • Lightning
  • Hail
  • Explosion
  • Vandalism
  • Flood
  • Earthquake

What about materials not stored at the project location? Builders Risk will cover your materials when they are in transit or even in storage at a different location. You are protected in the case there is a fire at your storage facility, or if materials are stolen on their way to the site.

Watch out though!

While materials are covered under a builders risk or course of construction policy, your tools and equipment are not. Check out our page on tools and equipment insurance (inland marine) to find out how you can protect the tools of your trade.

Your coverage also extends to your client’s existing structure, and not just their new addition or renovation. When you bid on the job, you can offer your client the peace of mind that, should something unexpected occur that causes damage, their house is protected by your plan during the construction phase.

Beginning a remodel project without Course of Construction coverage is putting your project and profitability at risk.

You can manage this risk by protecting your profits and your business from the worst-case scenarios by carrying Builders Risk insurance policy.

Construction Insurance