Contractors: 5 Tips to Help Grow Your Construction Business

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Construction business owners have a lot to gain from positive growth in the construction industry right now. The projects are out there, and there are profits to be made. Even the smallest, one-man operations can take their construction business to the next level with these five tips.

1. Treat your business like a business

Construction is your business, so be sure you are treating it like one. That means keeping up on necessary licenses, certifications, and bonds. If you aren’t licensed yet, the time is now.

Find out what the license requirements are in your state, and take the necessary steps to obtain one. If you are already licensed, be sure to pay attention to your license expiration date, and renew it on time.

Don’t stop with your license, either. Stay up to date on any trade-specific certification programs, and look into LEED certifications. Green building is a trend that is not going away anytime soon, and LEED certification will help you stand above the competition when you are bidding on the next project.

Contractor license bonds are required in most states, but you should also consider contractor bid, payment, and performance bonds. Being fully bonded will open up the door for bigger and better projects, and give potential clients the peace of mind that you are the best choice for their project.

2. Carry enough credit

A line of credit is an essential tool to help grow your construction business. You have checks to write and payments to make while you are working on your project. Materials need to be purchased; equipment needs to be rented; vendors, employees, and subcontractors need to be paid on time.

Missing or skipping payments to the people and suppliers who help you run your business is not only bad for your reputation, it can also damage your credit. A business line of credit is the solution to this all-too-common contractor problem. If you don’t have a business line of credit, you need to get one. If you have a small line, consider having it expanded. A credit line is good business, and can keep you up and running when you need it.

3. Cover your assets

The quickest way to lose your profits, and your business, is to ignore the risks that face contractors. Understand construction risk management and how it protects your business, and implement contractor insurance to fully protect yourself. The right insurance policies can protect your business assets such as tools, equipment, vehicles, employees, and even the project itself. And if you are a sole proprietor or independent contractor, the right contractor insurance policies can protect your personal assets, as well. Your general liability can even provide identity theft protection at no extra charge! The best part? Being covered doesn’t mean paying huge premiums for your contractor insurance. There are lots of ways to save on your insurance rates to get the coverage you need at a cost your business can afford.

4. Embrace construction technology

Construction technology is revolutionizing the industry, and if you are not taking advantage of mobile devices, project management software, and construction apps, then you are missing out. Technology is making collaboration better, communication easier, and saving you time on the project site. It’s time to go paperless, get mobile, and discover what construction apps you need to get a leg up on the competition.

5. Stop advertising and start marketing

No one picks up the phone book and looks for a contractor anymore. If you want to grow your business, potential new clients need to be able to find you online. You don’t need an advertising budget for your construction business anymore, you need an online marketing strategy. You need a website that works to bring you leads, positive reviews on Google+ or Yelp, and an active social media presence if you want to attract new clients.

Running a business can be tough, but today’s favorable construction industry climate is opening up new opportunities for savvy contractors determined to make it work. A little bit of forward-thinking can sometimes be the secret ingredient that will help your construction business grow to new heights.

The 10 Biggest Problems in Construction Solved

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Are you tired of facing the same problems on your construction projects? If you’re a painting contractor, small remodel business, or a general contractor with years of experience, you know that these issues can be frustrating. But what if there was a way to solve some of the biggest problems in construction? By identifying and addressing common challenges, you can improve the efficiency and profitability of your projects. So, what are some of the biggest problems in construction and how can they be solved?

Here are the answers you’ve been looking for on the ten biggest problems facing construction professionals today.

1. Lack of Skilled Workers

There is a big problem facing the construction industry: not enough skilled workers to fill a growing demand. The younger generation is being pushed toward college, and not vocational trades. The benefits of a career in construction are not being sold to millennials, and much of today’s existing workforce is closing in on retirement.

While industry experts try to tackle this problem on a national level, there are things you can do as a contractor and/or a small business owner to help.

  • Be a Mentor: During summer months, high school students and recent college grads are looking for work. Be willing to introduce your industry to someone who may not have considered construction as a career. Mentorship also works for existing skilled labor; if one of your best workers has showed an interest in the business side of construction, you can mentor an already skilled worker on the ins and outs of construction project management or construction business ownership.
  • Use a Staffing Agency: Construction staffing agencies can have skilled workers ready to work for you when you need them. The agencies take care of pre-screening applicants, which saves you time and gets you qualified workers quickly. Usually a staffing agency will also cover any HR costs with employment, including any workers compensation coverage for those employees.

2. Lack of Communication

When things go wrong on a project, it is almost always due to a communication breakdown along the way. Technology is the answer to your communication problems. Two-thirds of Americans own smartphones, so there is a good chance that almost everyone on your project has one. Using email, text messages, and construction technology apps on a project can get information instantaneously to all people on the project in real time and reduce the slowdowns and speed bumps of a communication breakdown.

3. Unreliable Subcontractors

Many contractors have problems finding reliable subs for their jobs. If you are in a pinch and need to find a sub, check with the materials suppliers and vendors that you work with regularly. They will have the inside scoop, and may have a great recommendation for a sub. You can also ask other subcontractors that you have worked with for a recommendation, too. Always check a sub’s licenses, make sure they carry general liability insurance, and list your company as additional insured on their insurance before you hire them.

4. Scheduling

Scheduling can be tricky for even the most seasoned construction professional. Once again, construction technology is providing a solution for this common problem. Project management apps that you can access from a desktop or your smartphone or tablet allow you to visually map out a project timeline. Many apps allow for a “sticky-note” style virtual board that allows you to easily see what needs to be completed, and gives real-time project status updates.

5. High Insurance Costs

Contractor insurance is part of the cost of doing business, but that doesn’t mean you have to overpay for it. You can get lower rates on your contractor insurance by combining coverage, not letting your coverage lapse, and reviewing your policies each year for changes that may save you money.

6. Changing Minds of Homeowners

Homeowners who want changes in the middle of a project may “forget” about the requests they’ve made when it comes time to pay the bill. In order to protect yourself, your reputation, and your bottom line; be sure that you get a signed change order every single time.

7. Available Cash

You have payments due to subs, employees, vendors, materials suppliers, and equipment renters… but you don’t get paid until the project is complete. And unless you have enough available cash flow, this can be a major problem. Have an open business line of credit to see you through the tough spots between bills due and project’s end, and you won’t have to see your credit (or reputation) suffer.

8. Document Management

Contracts, change orders, materials orders, receipts, invoices, employment applications, certificates of insurance… you probably have enough paper to fill an entire trailer of filing cabinets. It’s time to go paperless. A digital solution can help you stay on track of documents, organized on your projects, and on-time with your payments. At the very least, scan all documents into your computer and digitally file/ organize them. Be sure to backup your computer to a cloud service or hard drive regularly in case you have a hardware issue.

9. The Blame Game

Nothing ever goes smoothly in construction 100% of the time. When there is a bump in the road, fingers start pointing. The general contractor blames the sub, the homeowner blames the general contractor, the project manager blames the owner. When a worst-case scenario actually occurs, skip the blame game and finger pointing and get back on track with a builders risk policy. This type of specialized property insurance covers the project, and all of the principles working on it. Extreme weather, natural disasters, even theft and vandalism can all be situations where a course of construction policy can get you back to work without finger pointing and burnt bridges.

Did the owner change their mind on materials after they were installed? Or decided they didn’t like the work after it was done and are claiming you didn’t fulfill your contract? Carrying a liability policy with Faulty Workmanship Coverage can protect you from coming out of pocket for those new materials. The right coverage eliminates the Blame Game, keeping your clients happy and your bottom-line covered.

10. Ever-changing Regulations

Federal, state, county, and even city regulations are constantly being changed and updated. How are you supposed to stay on top of everything? Follow blogs and industry publications to get the latest updates on changing regulations that affect your business. Sign up for newsletters, and have new blog posts automatically emailed to you. Prevent inbox clutter by having these industry-specific emails sent to a specific folder in your inbox. Then, set aside 10-15 minutes each day when you can catch-up on everything you need to know to stay compliant.

How To Reduce Workplace Injuries On The Construction Site

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The construction industry is high risk; ask the men and women who ply their trades and skills every day in environments filled with hazards. Moving equipment, hazardous chemicals, electrical equipment, working from extreme heights — it all can lead to accidents or injuries.

Construction Safety Week shines a spotlight on the importance of reducing and avoiding accidents and injuries for the men and women who work in this high-risk industry. In honor of Construction Safety Week, we’ve assembled some expert advice and tips on how you can reduce injuries in the workplace.

Have a Safety Program

If you’re an employer in California, you must have an Injury and Illness Prevention Program (IIPP) in place. A Cochrane study found that regulation alone isn’t necessarily effective in reducing non-fatal and fatal injuries in construction workers, but additional strategies such as safety campaigns and drug-free workplace programs do have an effect in reducing injuries in the long-term.

Increase the impact of your IIPP by incorporating regular safety campaigns/ events and a drug-free workplace policy.

Implement Drug Testing Programs

The US Department of Labor has reported that 65% of on-the-job-accidents and 38%- 50% of all workers’ compensation claims are the result of alcohol and drug abuse in the workplace. Drug testing programs provide a powerful deterrent to drug use on the job.

A survey of human resource professionals stated that companies with high workers’ compensation incidence rates reported a 57% improvement in workers’ compensation claims after implementing drug testing programs.

Incorporate a drug free workplace program with your workplace safety plan to reduce unnecessary risks and reduce injuries on the work site.

Wear Personal Protective Equipment

Personal Protective Equipment (PPE) is essential for many jobs on a construction site. Hard hats protect heads from falling or flying objects, safety boots protect toes and feet from being run over or from falling objects, protective eyewear protects eyes from chemicals and flying objects, and so on.

Stay up to date on OSHA requirements for PPE and ensure your employees are trained and encouraged to wear the proper equipment for the jobs they do.

Inspect (and Respect) Tools

Hand tools and power tools can be hazardous on a work site. Be sure to inspect and maintain these tools before use. According to CA State Fund, here are some things to check for when using these tools:

  • Hand Tools
  • Proper fitting handles without splits, cracks, or tape holding the handle together.
  • Metal parts with wear and tear, which can prevent the tool from working properly.
  • Power Tools
  • Frayed or damaged plugs can be an electrical hazard
  • Wet or slick areas when using power tools can cause electrocution Use Ground Fault Circuit Interrupters (GFCI)

Keep a Clean House

Housekeeping can go a long way in keeping the worksite safer for everyone. According to CCOHS (Canadian Centre for Occupational Health and Safety), poor housekeeping can be a cause of accidents, such as:

  • tripping over loose objects on floors, stairs and platforms
  • being hit by falling objects
  • slipping on greasy, wet or dirty surfaces
  • striking against projecting, poorly stacked items or misplaced material
  • cutting, puncturing, or tearing the skin of hands or other parts of the body on projecting nails, wire or steel strapping

To avoid these accidents, implement a clean as you go policy for the workplace. Take responsibility for keeping your work area clean and hazards removed or covered whenever possible.

Have a Plan

No matter how much you train your employees and create a culture of safety, accidents can and will happen. That’s why it’s so important to have an emergency plan in place in the event of an accident or injury on the construction site.

  • Train all workers and employees on basic first aid and CPR
  • Have contact information available for emergency services and management
  • Place first aid kits in readily available locations

Every worker should know how to act and what to do in the event of an accident.

Construction Safety Week may be held each year, but safety on the construction site should be emphasized every day. One in five work related fatalities every year occur in the construction industry. By making construction safety a priority, you can keep yourself and your workers safe on the work site and reduce the risk of accidents and injuries.

How to Get Your Certificate of Liability Insurance in 3 Easy Steps

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When you work with a client or another third-party, you may be asked for proof of insurance. Potential clients may ask you for proof of insurance for a number of reasons, but generally they want to know what risks you’re insured for, what policies you’re insured with, and that you that have the proper coverage they’re looking for.

What is a Certificate of Insurance?

A certificate of insurance is a summary of your coverage issued by your insurance carrier (or carriers). It is an information summary page showing you have been insured and for which lines of coverage. The document will name you (the insured), the insurance company (or companies, if you have different policies with different carriers) issuing the policy, the type of policy, and the effective period . The certificate won’t list all of your liability coverage and any exceptions in detail, it’s merely intended to provide an overview. A certificate of insurance is the best way to provide proof of insurance and demonstrate that you have the coverage they’re looking for.

Why do you need a Certificate of Insurance?

You may need to provide proof of insurance for a variety of situations, including:

  • When signing a contract with a new client or contractor.
  • When signing a lease for property or equipment.
  • When verifying coverage for a homeowner

This goes in line with the idea that your certificate is your summary of coverage. In order to win the bid or be allowed on the jobsite, you need to show that you’re properly insured should anything bad happen during the project. It also gives peace of mind to individuals that not only can they trust your work, but if something unusual does happen, they won’t be in the poor house making up for it.

This three-step guide can help you get your certificate of insurance to whoever is requesting it promptly.

Step #1: Know the Minimum Requirements

Before requesting a certificate of insurance from your insurance provider, it’s important to understand the motivation behind the request. Certain third-parties may require that you have a certain amount of coverage before they can offer you a job. For example, a business may need you to have a liability policy limit of $1,000,000 before signing a contract with you to remodel a large commercial building. Get the minimum requirements in writing so that you know what you need for the job.

Step #2: Know What Your Liability Insurance Covers

If you’re concerned about whether or not you meet the minimum insurance requirements set by the third-party in question, review your policies or contact your insurance agent. You’ll want to make sure you have all of the coverage you need, and that your policy limits meet the requirements. If you don’t have the required coverage, you’ll have to decide if it’s worth expanding your insurance for the job. If you do decide to purchase more coverage, the first step is to contact your insurance agent to discuss your options.

Step #3: Request Your Certificate of Insurance

Once you understand the minimum requirements and are sure you meet them, here’s how to get a certificate of insurance. Contact your insurance agent and provide the individual or company needing to be listed as certificate holder, as well as their address, insurance requirements, and any contact information. Your agent will be able to review the information, make sure you meet the coverage requirements. If everything checks out, you should be able to get the certificate fairly quickly. At Citizens General, we can issue your certificate the same day if you get your request in before 2PM PST. The easiest way to submit you request is through our certificate request page.

To dive a little deeper, you’ll need to provide your insurance company with certain information about yourself (the insured) so they can confirm your coverage and the third-party (the certificate holder).

  • Your contact information
  • Your policy number
  • The certificate holder’s name
  • The certificate holder’s contact information, including their address, fax, and/or email
  • The information of any other individuals or companies that need to be listed on the certificate
  • The job site and project information
  • A copy of the insurance requirements or contract, if available

At some point, you’ll need to provide a client or another third-party with proof of insurance. When that happens, a certificate of insurance is the best way for you to prove that you’re insured and have the coverage you say you do. At Citizens, we make sure you can get your certificate of insurance quickly and easily, so you can get to work with no delay.

Why a Lapse in Construction Insurance is Bad Business

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A smart business owner or independent contractor is always watching his bottom line.

You may be a newly established small business, or an industry expert with many years of experience. Either way, construction insurance coverage is equally important to businesses of all sizes.

Insurance coverage lapses can happen for a lot of reasons

  • Late payments
  • Intentional cancellation
  • To lower costs during a slow season

But before you consider letting one or more of your policies lapse, there is something you should know.

A lapse in insurance coverage can have big consequences for your business.

To put it simply, a lapse of coverage can be bad news.

Let’s look at the ways it can cost you big if you let go of one of your construction insurance policies.

Accidents Can Still Happen

Here is a common myth about your general liability coverage: “My policy will cover claims from work I’ve completed for up to 3 or 10 years.”

This is a misconception that could cost you big.

If a third-party experiences injury, or property damage, as a result of your work, your insurance will only cover it if it has occurred during the policy period. A claim may still be filed after the policy period, but if the injury or damage didn’t occur while the policy is in force, you’re stuck with the bill.

When an accident happens the day after you’ve let your coverage lapse, you will be the one paying the price.

Lapses Don’t Really Save You Money

So you let some coverage lapse during the slow season, and now business has picked up and you are ready to protect it again.

But this time, it may not be so easy.

When you show a history of lapses in coverage, it can become difficult to find someone who will write you a new policy at the same rate as before. The agents and underwriters who review your file begin to see your company as a risk.

You may find yourself with fewer options, and much higher premiums.

As a matter of fact, a lapse in your construction insurance can cost you much more in the long term. Commonly, cancelling coverage doesn’t get you a refund in your fees. Getting insured the next time could be difficult and cost you even more in premiums since you forego any continued policy discounts. You even run a risk of not being able to get coverage at all. And someone could still get injured and bring a lawsuit your way.

The best way to watch your bottom line and put more cash into your business is to lower your rates on your contractor’s insurance, not to let it lapse.

How to Combat a Lapse in Coverage

Let’s face it, things happen. Payments get missed. Renewal dates pass us by. It’s a fact of life.

But that doesn’t necessarily mean you’re left out to dry.

The best way to reduce expose is to ask for the carrier to remove the “prior work exclusion” endorsement. If you’ve done work during a period of lapse, or even if you’re switching between carriers, this is the best way to make sure that prior work is still covered.

What is Contractor Pollution Liability Insurance?

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How often do you hear about a major corporation in hot water because of an environmental mishap? It happens all of the time, usually played out for all the world to see with national news coverage. But a pollution event doesn’t have to be as big as a giant oil spill into the ocean to have devastating effects on a business.

Sometimes, something as small as site runoff after a heavy rain could be just as damaging to a company’s profits and reputation.

Which is why pollution coverage is quickly becoming a can’t-miss policy for almost every contractor in the construction industry. Think you don’t need this coverage for your business?

You may want to keep reading…

Because what you don’t know about contractor pollution insurance could cost you.

What is Contractor Pollution Liability Insurance?

Let’s take a closer look at this policy. Contractor pollution liability insurance (CPL) provides coverage for third-party injury, property damage, defense, and clean-up as a result of pollution conditions which arise on behalf of your contracting operations.

The CPL policy (also known as environmental liability) protects contractors against pollution conditions caused by their work, as well as work performed by subcontractors on their behalf.

“Isn’t third-party stuff covered by my general liability policy?”

If you’re like many contractors, you may assume that your general liability policy covers pretty much every third-party injury or property damage claim that may come your way. But general liability policies typically contain a pollution exclusion which excludes bodily injury or property damage arising from the release of a pollutant.

Almost as importantly, your general liability policy doesn’t cover the costs of clean-up or remediation, which could be the most costly part of a pollution event.

What is a Pollutant?

If you don’t handle toxic waste, you may think you’re in the clear. But in insurance terms, a pollutant is defined as:

Pollutant
“An irritant or contaminant, whether in solid, liquid, or gaseous form, including — when they can be regarded as an irritant or contaminant — smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.”

Paint fumes. Mold. Asbestos. Welding fumes. Bacteria. You may be surprised how often a contractor runs the risk of releasing contaminants while performing their work.

“It Happened to Me.” Real Life Examples of CPL Claims

Check out these real life claims examples to see how contractors were impacted by pollution events they never saw coming.

Drywall contractor: When a drywall contractor was hanging new drywall for a new construction project, he didn’t realize his employee accidentally drilled through a small water pipe. All it takes is 36 hours for mold to grow once water leaks, and substantial mold grew between the walls before anyone noticed. That one small accident by the drywall contractor’s employee, one hole in a small pipe, led to a big claim. He was held responsible for third-party injury claims from mold exposure, in addition to the costs of cleanup.

Electrical contractor: An electrical contractor was using a hole saw to cut through a ceiling while installing new electrical lines in a historic building. Unfortunately, he disturbed and released asbestos-containing insulation material with his saw. The contractor was responsible for the costs of cleanup throughout the entire building.

General contractor: A general contractor completed construction of a new school, but two years later received news that a faulty window system was letting water into the building. Mold was discovered, and faulty installation was determined to be part of the issue. The subcontractor who installed the windows was no longer in business, so the general contractor and the window manufacturer were both held responsible. In this situation, the general contractor did not have pollution coverage and had to pay over $900,000 for the incident.

HVAC contractor: When an HVAC contractor installed a new system in an office building, he didn’t realize the ducts had been improperly sealed. Once office employees began to get sick, it was discovered that the improperly sealed ducts had let condensation build up, and legionella bacteria had been sent airborne throughout the office. The employees brought a lawsuit against the contractor and property owner.

Plumbing contractor: A plumbing contractor installed a lawn sprinkler system without adequate vacuum breakers on the discharge side of the water supply valves. The result was back-siphonage of stagnant lawn water contaminating the drinking water supply. When several people drank the water and contracted dysentery, the plumbing contractor was faced with a lawsuit which included the costs of investigating the issue.

In the examples above, pollution coverage protected almost every contractor from the high costs of investigations, bodily injury, pollutant clean-ups, and lawsuits. Unfortunately for the contractor who didn’t have coverage, the out-of-pocket costs of one single incident totaled almost a million dollars.

Who Needs Contractor Pollution Liability?

All construction operations have the potential for triggering an environmental incident. Which is why environmental liability coverage is available to any type of contractor performing operations or conducting work, from general contractors to specialty trades.

Some contractors may face higher than average risks for pollution events, however, such as mold, asbestos, silica, and other contaminants.

Contractors who perform work in some of the following areas are strongly encouraged to learn more about CPL coverage:

  • Abatement and remediation
  • Above/below ground storage tanks
  • Demolition
  • Electrical, HVAC and mechanical
  • General contractors
  • Grading, site, and excavation
  • Industrial and pipeline
  • Maintenance
  • Roofing
  • Sewer, waste and utility
  • Street and road

What Else Do I Need to Know about Pollution Coverage?

Pollution liability coverage can be offered on a project basis or as a blanket program. A project policy will provide coverage for operations performed during the construction period, and can include “tail” coverage for an extended reporting period.

A blanket program will cover all defined operations which take place during the policy term.

No one plans on releasing a pollutant such as mold, bacteria, or asbestos while performing their construction operations. But if you do run across a mishap, the cost could be huge. Investigations as to the cause of mystery illnesses, medical expenses, lawsuits, cleanup of the area, and even reputational damage could cost you more than financial losses. It could be devastating to your business reputation, as well.

Don’t let a single mishap lead to the ruin of your contractor business. Protect yourself with pollution liability coverage, instead.

Contractor Bonds 101: How Bonds Help Grow Your Business

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Contractor bonds are a must-have if you want to do business in the construction industry. And if you think you only need a bond for a major public project, you are mistaken. Whether you specialize in the private or public sector, contractor bonds are an important part of building a sturdy business.

Surety Bonds: The Basics

A surety bond is an agreement that you will fulfill your contractual duties. If you fail to perform your duties as contracted, then the surety company who issues the bond will compensate the project owner so they can find another contractor, and don’t suffer financial losses.

The Benefits of being Bonded

When you are bonded, you demonstrate to potential customers that you are a contractor with a track record of doing things right and fulfilling your obligations. You can promise your customers that you guarantee to do your job correctly all day, but a bond is guarantee that backs up your promise.

Certain bonds are required by the state if you want to do business, and others may be required for a certain project. Whether they are required or not, all bonds make you a more desirable candidate to homeowners and project owners.

Types of Contractor Bonds

Here are the bonds that will help you grow your business, and the individual benefits you get from each.

License Bonds

Contractor license bonds provide a guarantee to the state that you will follow the law and not violate the rules and regulations of your contractors license. Most states require you to carry a license bond if you want to do any kind of business.

Bid Bonds

Contractor bid bonds provide a guarantee to a project owner that you will honor your bid if they select you for the project. Contractor bids bonds can help limit the bidders on a project to only the most responsible and qualified, which benefits both the project owner and the contractors who want the project.

Performance bonds

Contractor performance bonds provide a guarantee that you will complete the project according to the contract. You guarantee to follow the plans and finish the job. If you fail to perform as contracted, the project owner can file a claim and replace you with another contractor who will. When you carry a performance bond, homeowners and project owners know they can count on you to do what the contract says.

Payment bonds

Contractor payment bonds provide a guarantee that you will pay your material suppliers, subcontractors, and laborers. A payment bond protects the project owner from facing liens on the property, or having to foot the bill for unpaid labor and materials.

A payment bond makes subcontractors and suppliers more likely to work with you, knowing there is a guarantee that they will get paid on time. The benefits of a payment bond also protect your reputation in the industry if the unthinkable happens and you can’t make the payments you owe.

Don’t limit yourself to a state-required license bond. When you are fully bonded, you are ready to take on any project. You stand above the un-bonded competition, and get to bid on the best projects. Vendors, suppliers, and subcontractors are more than willing to work with you, and best of all, you have a guarantee that backs up your promise of excellence. Contractor bonds are a simple tool that can take your construction business to the next level.

Does Your Builders Risk Insurance Cover Your Subs?

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When you’re working on a project, you want to make sure it’s protected from a wide range of risks, from fires, theft, and even… subcontractors. After all, an unexpected event could come from anywhere and anyone. Which is why you made sure to get a builders risk policy in the first place.

What Builders Risk Insurance Does (and Doesn’t) Cover

Builders Risk Insurance covers damage to property under construction in the event of an accident, such as:

  • Fire
  • Flood
  • Theft
  • Vandalism
  • Explosions

This policy is designed to cover a single construction project, so coverage is typically offered on a short-term basis, ranging from 3 months to 12 months depending on the length of your project. It doesn’t cover pre-existing properties.

It does protect property under construction and the tools and equipment associated with that construction. In other words, a Builders Risk policy won’t cover a home you’re repairing, but it will cover one you’re building.

Because damages to construction sites can be expensive, it’s important to make sure that everyone who is financially invested in the project is covered on your builders risk policy- including your subcontractors.

How A Construction Contract Protects Your Subs

“Read your contract.” In the construction world and the insurance world, this is kind of the golden rule.

Builders risk insurance is designed to meet the insurance requirements specified in the contract for the project in question. The construction contract will specify which parties should be included in the builders risk insurance policy by listing them as “insureds” or “additional named insureds”. However, which parties are listed as insureds can vary from project to project.

Make sure the insurance requirements for your project include your subcontractors before you obtain your policy.

Keep in mind that your insurance company may not agree to cover all of the parties listed in the contract. Typical exclusions include:

  • Architects
  • Engineers
  • Material Suppliers

Because not all insurance underwriters will include all parties named in your construction contract, it’s important to understand your policy coverage before you commit to it.

Review Your Builders Risk Policy

If you already have builders risk insurance or are looking to purchase, the best way to make sure your subcontractors are covered is to review your insurance policy. No two policies are identical, so what events your policy covers and who the insureds are may vary from company to company and project to project.

A builders risk policy is typically purchased either by the general contractor or the owner/developer associated with the project. The insured parties listed in the policy should include:

  • The project owner
  • The general contractor(s)
  • The subcontractors

The project bid and contract should make clear who is responsible for obtaining the policy, and who will pay the deductibles. It’s important to make sure that all of the insureds above are listed in the policy so that everyone with an interest in the project is covered.

What To Do If Your Subs Aren’t Covered

Your builders risk policy should cover your subcontractors, and any policy worth its weight will. But what should you do if you read through your contract and policy and discover your subs aren’t listed? Make sure you contact your insurance company or underwriter and ask to have your subcontractors added as additional insureds.

It’s important that all parties with an interest in a construction project are covered by your builders risk insurance. All construction projects are unique and will have their own individual coverage needs, however. This means that no builders risk policy will be exactly like another. It’s important to read through your construction contract and your policy to make sure that you’re getting the appropriate coverage.

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Top 20 Construction Blogs & Publications to Follow

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As we near the end of the year, it helps to have a list of excellent resources for finding information quick .To save you some time, we combed through all the clutter and put together this handy list of the best contractor blogs and online publications we could find covering a broad range of topics so you can save this page and keep it all right in one place.

There’s a little something for everyone in here. So in no particular order, we present to you the Top 20 Construction Blogs and Publications you should follow.

Best Construction Industry Blogs

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:

  • Internet of Things for the Build Environment
  • Bringing Your Construction Site Up to Code

2. 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:

  • Five Productivity Apps for Construction Teams
  • CRM Platforms for Small Construction Teams

3. Contractor Hub

Contractors and construction pros will find a wealth of information about building, marketing, and running their businesses over at the Contractor Blog at Contractor Hub. In addition to their blog, Contractor Hub also offers a free contractor directory where you can list your business as well as online tools that can help you use social media for lead generation, blog for business, create a business plan, and even a profit and loss tool.

Recommended Reading:

  • How to Negotiate the Best Discounts on Construction Materials
  • SEO Best Practices for Your Contractor Website

4. 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:

  • Is it Better to Lease or Buy Your Construction Equipment?
  • Relationship Marketing and Developing Loyal Customers

5. Construction Contract Advisor

You don’t need to specialize in construction contract law, that’s what you have the Construction Contract Advisor blog for. Craig Martin, a partner in the law firm of Lamson Dugan and Murray, LLP in Omaha, Nebraska, writes this must read resource for contractors which covers all aspects of construction law.
Recommended Reading:

  • The Importance of Providing Notice to a Surety
  • Workplace Safety- The Unpreventable Employee Misconduct Defense

6. 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:

  • U.S. Home Improvement Spending will Increase in 2016
  • Modern Slavery: the Dark Side of Construction

7. Valleycrest Takes On

The only specialized niche blog to make our list, Valleycrest Takes On is a blog by commercial landscaping company Valleycrest 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. Multiple contributors from the company gives Valleycrest Takes On posts personality, and fascinating case studies demonstrate real costs savings.
Recommended Reading:

  • Water Conservation in the Cloud
  • California’s Drought Outlook

8. 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:

  • How Do You Handle Rejection
  • The Coming Jobs War

9. 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.
Recommended Reading:

  • Construction Cost Cheat Sheet
  • The Down and Dirty of Sustainable Design

10. 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:

  • Pros and Cons of Three Concrete Structure Methods
  • Tilt Wall vs Masonry Construction

 

construction insurance

 

Best Construction Industry Publications

 

11. 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:

  • How is data changing the nature of design?
  • Good design can combat open-office issues

 

12. 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:

  • Hottest Housing Markets Dominated by FL, Pacific NW
  • The Coming Crackdown: Why Penalties for Construction Owners are on the Rise

 

13. 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:

  • Better Brand Building
  • Controlling the Cost of Safety

 

14. 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:

  • 10 Ideas to Change Your Remodeling Business
  • Are Free Estimates in Your Best Interest?

 

15. 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:

  • Boomers and Millennials Compete for Condominiums
  • Consequences of Complexity in the Building Process

 

16. 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:

  • Monthly Plumbing Quiz: Health and Safety
  • Lien Waivers: what am I really waiving?

 

17. 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:

  • Now is the time to Dig Into the Hotel Industry
  • Rebranding Construction to Attract a Talented Workforce

 

18. 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:

  • Technology is at Contractors’ Fingertips, Literally
  • New Technique Could Make Cement Manufacturing Carbon-Neutral

 

19. 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:

  • Who Bears the Blame in Federal Contract Disputes?
  • ENR Risk Survey: The Clients and Clauses That Companies Avoid

 

20. 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, serviceablity, and machine comforts, as well as dealer service and support.
Recommended Reading:

  • A heavy hauler’s guide for managing load distribution: Keeping things in balance
  • Intelligent Traction: How modern articulated dump trucks traverse hills, extreme slope with a full load

 

These great resources will keep you up to date on everything you need to know to get ahead of the game, so don’t miss a single one.Construction Insurance

Does Your Contractor Insurance Cover Construction Defects?

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It would be nice to think that you’ll never have to deal with a construction defect or faulty workmanship claim. After all, you strive for perfection on every project and have rigorous standards in place to prevent these sorts of issues from occurring. If a construction defect claim does come knocking on your door, it may be a good idea to have some sort of contractor insurance policy in place as a safety net… but which one?

Which of your Contractor Insurance Policies Covers Construction Defects?

Your construction insurance coverage is generally meant to protect you from the truly unexpected events you could encounter: fires, theft, auto accidents, injuries, or even a setback for the project you’re working on. But a construction defect usually falls outside of this realm of “unexpected” event.

A construction defect is typically a result of failure of design or construction which may lead to injury or damage. Some construction defects may have serious repercussions, while others may present no increased risk of injury. The latter are considered “passive” losses, which could lead to a loss of use, extra expenses, or decreased value for the property owner. Either way, the losses an owner faces could come back to you.

If you are hoping to safeguard your contractor business against the risks of a construction defect, here are a few of the policies which may (or may not) cover you:

Builders Risk

Builders risk coverage protects a project under construction against losses from theft, fire, vandalism, or wind. Builders risk is often written on an “all-risk” basis, meaning all perils are covered unless they are specifically excluded in the policy. Which means construction defects or faulty workmanship may possibly be covered in your policy.

Check out the pros and cons below to find out if it is.

Pros:

Some builders risk policies may include specific coverage for resulting damage due to faulty workmanship, construction defect, or design error. Carefully read your builders risk policy to see if it covers construction defects, or ask your insurance provider if this coverage is included.

Cons:

Not all builders risk policies cover faulty workmanship or construction defects. Yours may contain a faulty workmanship exclusion, which would prevent coverage for these claims. Read your policy to see if faulty workmanship is excluded.

Builders risk coverage is typically written on a project specific basis; it begins when materials are delivered for the project, and ends when the work is complete and the finished project has been turned over to the owner. If your builders risk policy does include coverage for construction defects, the coverage period is generally only for the amount of time it takes to complete the project. Any defects which arise after the policy period has ended generally won’t be covered.

Product Liability

Product liability coverage protects manufacturers or sellers from third-party injuries or property damage claims. Typical coverage includes manufacturing or production flaws, faulty design, or inadequate warnings or instructions.

Pros:

If you manufacture and install a particular building supply, such as custom windows, product liability is meant to protect you from claims arising from defective products. If you are a retailer who offers installation services, you may also benefit from this coverage.

Cons:

Not all contractors can benefit from product liability insurance. The coverage is specifically meant to cover manufacturers and businesses which sell products. If you don’t manufacture the product itself, then this particular policy won’t be the answer to your defect coverage issue. If you install the windows manufactured by someone else, for example, product liability covers the manufacturing party but not you.

Contractors Professional Liability

A relatively new coverage which is intended to protect contractors involved with design-build work, Contractors Professional Liability protects against construction defects arising from design errors or omissions. Like a standard professional liability policy, it covers lawsuits due to errors, oversights, or professional negligence.

Pros:

Contractors who engage in design-build work face more risks for professional liability exposure. Contractors professional liability coverage can be written on a project-specific basis, just like builders risk; on a claims-made basis to cover any claims made during the policy period; or on an annual basis to cover all of your design-build operations.

Cons:

The benefits of a contractors professional liability policy typically make this policy a smart addition to a contractor insurance package when you perform design-build operations. General contractors or subcontractors who don’t perform design-builds may have never even heard of this coverage and aren’t likely to carry it.

General Liability

General liability protects contractors from third-party claims for bodily injury or property damage, and many contractors assume that this coverage includes faulty workmanship and other construction defects. (This assumption may or may not be correct, so keep reading.)

Pros:

General liability insurance often includes coverage for “completed operations,” which includes liability arising from your work or product once operations have been finished.

Cons:

Most general liability policies actually include multiple exclusions which specifically prevent coverage for faulty workmanship. The subject of defect coverage within your general liability coverage is actually a pretty heated one in the insurance industry.

The overall purpose of a general liability policy is to cover you for damages due to bodily injury or property damage caused by an occurrence. And there is widespread industry disagreeance about whether or not a construction defect actually counts as a covered occurrence. Many courts in various states have come to different conclusions about whether a defect is or is not an occurrence, as well as resulting damage to other work or third party property.

You may be surprised to find that faulty workmanship has traditionally not been covered by a contractor general liability policy.

But there’s one more contractor insurance solution to be considered for protection against defects.

Faulty Workmanship Endorsement

Citizens General offers a Faulty Workmanship Endorsement which can be added to a contractor general liability policy. This endorsement removes uncertainty over whether construction defects and faulty workmanship are covered under your general liability policy or not.

Pros:

The Faulty Workmanship Endorsement provides up to $10,000 of coverage for you against claims arising out of faulty workmanship, materials, or products. With the endorsement, you don’t have to worry whether or not your defect claim is covered by a standard general liability policy; you’ll have peace-of-mind knowing you’re covered.

Cons:

There are no drawbacks to adding this endorsement to your general liability policy. The affordable endorsement offers you protection against a risk that you are very likely to face as you perform your work, no matter how much you strive for perfection on every job. If you want a safety net against construction defect claims, the Faulty Workmanship Endorsement is the answer. This endorsement is so affordable, you’d be downright careless not to include it to your contractor insurance coverage.

No one wants to think their work could be considered “faulty” or “defective.” But if you do happen to have an incident where something you’ve designed, built, manufactured, or installed led to an injury or property damage, the right contractor insurance policies and endorsements can offer you a safety net to protect you. Mistakes can happen. When they do, your insurance is there to ensure you won’t be left paying the price.