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More and more employers are moving away from the traditional guaranteed Workers’ Compensation Insurance plans into loss-sensitive plans. Loss-sensitive plans can help some businesses save money, but for others, a loss-sensitive plan can cost a company more than a guaranteed plan.

How do you know which type of Workers’ Compensation plan will yield the highest return for your business? Here are three tips to help.

Understand the Different Types of Loss-Sensitive Plans Available.

Retrospective Rating Plans

The Insurance Journal defines a retrospective rating plan as a plan “in which the final premium is based on the insured’s actual loss experience during the policy term, subject to a minimum and maximum premium, with the final premium determined by a formula which is guaranteed in the insurance contract.”

With a retrospective rating plan, an employer pays a standard premium - a combination of a basic premium and a loss projection - at the beginning of the policy year. After eighteen months, the insurer uses the employer’s actual losses to calculate a retro premium. If the retro premium is lower than the standard premium, the employer receives a premium from the insurer for the difference. If the retro premium is higher than the standard premium, the employer has to pay an additional premium.

Typically, there is a cap on the additional premium (usually 1.20 times the standard premium) an employer must pay.

Large Deductible Plan

A large-deductible plan is basically a guaranteed WC plan that includes the employer self-insuring part of its compensation losses with a large deductible. With this type of plan, the employer pays a lower premium but is then required to set up an escrow fund and reimburse the insurance company for claims up to a certain dollar amount.

Captives

The Insurance Journal defines captives as “any insurance company that is owned by one or more organizations, and that insures only the owners of the company.” There are typically two types of captives used for WC. One is a single owner, where the company that is insured has complete control over everything, including investments, operations, etc. The other type is a rent-a-captive, which is owned and run by an organization other than the insured, such as a broker, a fronting insurance carrier, etc.

Understand Your Risk Tolerance

The advantage of a guaranteed Workers’ Compensation Insurance plan is that your premiums are very predictable. You can put it into your budget and not worry about it. The cost of loss-sensitive plans can vary significantly. You can include an estimate in your budget, but the actual cost can vary, along with the frequency and timing of payments.

IF your company has a low tolerance for risk, a guaranteed plan may be a better choice. However, if you’ve created an effective safety program, provided all of your employees with appropriate safety training, have a robust return-to-work program, and have minimized workplace injuries, your loss projections should be reasonably accurate. Therefore, you may want to consider taking on more risk with a loss-sensitive plan. You’ve reduced risk within your organization, and a loss-sensitive plan could provide a higher return on your investment.

Consider the Financial Impact of Each Type of Plan

You should understand the impact each type of plan will have on your cash flow and the tax implications of each. A guaranteed cost plan may cost you more; however, it provides consistent payments, and you know how much you’re going to pay. You can put the cost of your premiums into the budget and not worry about it.

However, a loss-sensitive program can offer cash flow advantages because you’re paying for claims as they occur rather than paying an insurance company upfront for expenses that may not occur for months or even years.

Need More Help Lowering Workers’ Compensation Costs?

American Insuring Group is committed to providing the best insurance coverage at the best price. First, we offer blogs for a variety of industries to help improve workplace safety, which will help lower WC costs.

Plus, we are independent agents who specialize in Workers’ Compensation Insurance. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Contractor Insurance is required to protect your assets and your business, whether you’re a one-person independent contractor or the owner of a construction company.

But that doesn’t mean you can’t lower the cost of your insurance premiums.

Here are seven smart ways to you can start saving on contractor Insurance:

Increase Deductibles

A deductible is the amount of money that you will need to pay if you make a claim before the insurance company pays anything. In other words, if you have a $500 deductible and make a $2,000 claim that is covered, the insurance company would pay $1,500 only after you have paid the $500.

Increasing the amount of your deductible will lower the cost of your premiums, freeing up funds that could be used to buy new equipment, give raises, or however you think that money could be best used.

However, before you make that decision, make sure that you have enough money in reserve that you could pay that deductible if you made a claim. Otherwise, you could find yourself without a tool or vehicle that you need to conduct business if it is stolen, damaged, or destroyed. If you can’t pay that deductible, you can’t repair or replace that item.

Pay Upfront

Most insurance companies will discount your rate if you can pay your insurance premium upfront, rather than monthly. So, if you have the cash available, pay your insurance premiums annually.

Combine Insurance Policies

Every contractor should have Commercial General Liability (CGL) Insurance, which covers your business for injury or property damage caused by the operation of your business or on your business premises. Chances are good, that isn’t the only insurance you will need to protect your business.

You may need property insurance to protect your buildings and its contents, auto insurance to protect your vehicles, or any number of other types of insurance. Many insurance companies will give you a discount if you purchase more than one type of insurance with them.

Lower Commercial Auto Insurance

If you hire drivers with bad driving records, you will pay more for your commercial auto insurance; it’s that simple. Before hiring anyone who will drive one of your commercial vehicles, check their driving records and only hire those with excellent driving records.

Another way to save on auto insurance is to evaluate new vehicle purchases. The more a vehicle is worth, the more your insurance premiums will be. So, when you are comparing the price of vehicles, don’t forget to factor in the cost of insurance to cover it. You may find a less-expensive model will meet your needs and save you a ton of money in the long run.

Identify and Minimize Your Risks

The fewer claims you make, the lower your premiums will be. Identify any potential hazards and create a plan to prevent those risks, and you should be able to reduce the number of claims.

For example, there is always the risk of your tools or equipment being stolen, so if you can minimize the risk of theft – such as installing security cameras, locks, or tracking devices – you will lower the chances of those items being stolen, which means fewer claims. Fewer claims can reduce the cost of your premiums and minimize any deductibles you have to pay.

Create a Safer Worksite

We would be remiss if we didn’t include this one. A safer worksite means fewer employee injuries, which means lower Workers’ Compensation costs. A safer worksite also means fewer third-party injuries, which could result in expensive lawsuits; thereby, increasing your CGL costs.

OSHA offers a variety of resources to improve worksite safety, and you’ll also find many tips to create a safer worksite on this blog.

Work with an Independent Insurance Agent

Independent Insurance agents – like the experienced agents at American Insuring Group – can compare several different insurance companies to ensure that you get the right coverage and the best price on all your business insurance needs, including contractor insurance. By comparison, a captive (single-company) agent can only sell policies from a single insurance carrier.

Ready to start saving? Give one of our independent agents a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

Vocational rehabilitation (VR) is one of the benefits of Workers’ Compensation Insurance. It can benefit both the injured employee and their employer by getting the employee back to work more quickly, thereby reducing the costs associated with Workers’ Compensation claims.

However, this benefit needs to be closely monitored to ensure that it continues to benefit the injured employee. If VR is no longer benefiting them, it could be costing your business.

What Is Vocational Rehabilitation?

Vocational rehabilitation as a WC benefit is designed to help injured employees return to work. Vocational rehabilitation services can vary depending on what the injured employee needs.

According to the National Rehabilitation Information Center (NARIC), some of the services a rehabilitating consultant (QRC) may provide include the following:

• vocational assessment and evaluation
• training
• upgrading of general skills
• refresher courses
• on-the-job training
• career counseling
• employment searches
• consulting with the employer for job accommodations or modifications.

Who Can Benefit From Vocational Rehabilitation?

Typically, VR is a WC benefit reserved for injured employees who have been out of work for an extended time. The process begins with a consultation with a QRC who can make recommendations regarding whether VR could be a benefit for the injured employee or not.

The QRC considers several factors before making a recommendation, including whether or not the injured employee will be able to return to the job they had before the injury, whether or not the injured employee is expected to be able to find gainful employment with the employer he or she was with when injured, and whether or not the injured employee is able to find gainful employment through VR services based on the treating physician’s opinion.

How Can Vocational Rehabilitation Be Monitored?

If vocational rehabilitation is approved, the claim handler must monitor the regular reports issued by the QRC. Those reports will include what services are being provided and how well the employee is recovering.

When reviewing those reports, the handler should consider several things. Are the employees’ physical limitations (new or ongoing) interfering with the completion of the rehabilitation plan? The employee could have a setback or could incur a new injury or disability that could stop him from completing the VR program.

Is the injured employee fully engaging in the VR? If the employee is not cooperating, such as missing appointments or not keeping in touch with his or her employer and/or QRC, he or she is not fully engaged in the program and probably won’t benefit from it.

Should the goals of the VR be changed? Perhaps the injured employee is not progressing as expected. Perhaps they’ve had a setback. If this occurs, it may be necessary to adjust the VR goals.  

When is it Time to Terminate Vocational Rehabilitation?

If, while reviewing these reports, it appears that the injured employee is no longer benefiting from VR services, termination of those services should be considered. The individual asking for the termination of VR services has to prove that those services are no longer benefiting the injured employee.

Typically, grounds for terminating those services include the following:

• Death of the injured employee
• The Workers’ Compensation case is settled
• The injured employee is no longer participating in the services
• The injured employee returns to work with a minimal or no wage loss

Vocational Rehabilitation can often help an injured employee return to work more quickly, benefiting both employee and employer. However, Vocation Rehabilitation that is not monitored can end up costing employers big time.

That’s why it’s imperative that someone continues to monitor the injured employee’s status and level of cooperation and take steps to terminate VR services if evidence shows that the injured employee will no longer benefit from those services.

Here's How to Save Even More on Workers’ Compensation Insurance!

The independent agents at American Insuring Group specialize in Workers’ Compensation Insurance. We have the experience and the knowledge to help you lower your WC costs. Our independence allow us to shop and compare insurance providers and policies to get you the right protection at the best price.

Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

We provide worker's compensation insurance solutions in Philadelphia, Berks County, Lancaster, Harrisburg, Allentown, Pittsburgh, Erie, PA and beyond. 

Want to know how to lower your Contractor Insurance costs? It’s simple: reduce the number of claims. You already know the construction industry is filled with its share of potential hazards, and this is particularly true for roofers.

Roofing work was rated the fourth most dangerous job - behind logging workers, fishing workers, and pilots – in 2019. The roofing profession has a 48.6 fatality rate – the number of deaths per 100,000 full-time workers calculated by the Bureau of Labor Statistics, with more than 100 fatalities per year (most a result of a fall).

Here are seven tips to ensure the safety of your roofers and reduce insurance costs:

Plan, Provide, and Train

OSHA recommends that employers plan, provide, and train to help ensure the safety of employees. Plan ahead to get the job done safely. Provide appropriate equipment so that employees can work safely. Train workers to recognize hazards and the proper use of equipment, ladders, scaffolds, and fall protection systems.  

Consider Weather Conditions

Moisture, ice, and wet leaves can make a roof extremely slippery, and a strong gust of wind can cause a worker to lose his or her balance. Avoid working on roofs in bad weather, especially on surfaces such as slate, tile, metal, and some single-ply membranes, which can be particularly slippery when wet.

Use Ladders Properly

Ladders are an essential tool for any roofer. Ladders should be inspected for visible defects regularly and after any occurrence that could have caused damage. Ladders should only be used on stable and level surfaces. If that isn’t possible, secure the ladder to keep it from moving. Areas at the top and bottom of the ladder should be kept clear.

Roofers should be trained to maintain three points of contact (two hands and a foot or two feet and a hand) at all times when going up or down a ladder. Workers should also not carry anything that could cause them to lose their balance.

Check to make sure that ladders are fully open before using them. If using non-self-supporting ladders, such as extension ladders, OSHA recommends setting the ladder “at an angle so the horizontal distance between the top support and the foot of the ladder is approximately one-quarter the working length of the ladder (a 1:4 ratio).”

Provide Fall Protection

It comes as no surprise that falls are the leading cause of work-related injuries and fatalities among roofers. Employees should attend regular training on fall safety.

OSHA requires that employees who are exposed to a fall of six feet or more to a lower level be provided with fall protection. Fall protection can come in many forms, including personal fall arrest systems (PFAS), fall restraint systems, guide-rail systems, warning line systems, safety net systems, safety monitoring systems, and covers.

Provide Safe Scaffolding

Ensure that any scaffolds used are designed and constructed by a qualified person. Employees are most likely to fall when climbing on or off a scaffold, so it’s important to provide safe access. It’s also important that scaffolds are fully planked or decked between the front uprights and guardrail supports.

Consider Electrical Safety

The biggest electrocution risk for roofers is contact with overhead powerlines, but contact with electrical conduit buried in old roofing can also cause electrocution. Workers should be protected from electrocution by de-energizing the circuits, grounding, or guarding it with insulation.

Train Employees on Hazardous Materials

Employees must be trained on how to read and understand safety data sheets, container labeling, and other forms of warning and how to protect themselves from hazards, such as asbestos, lead, silica, and hazardous chemicals.

Compare Insurance - Here's How We Can Help You Save!

Another way to save on Contractor Insurance is to work with an independent agent – like those at American Insuring Group – who will compare the cost and quality of insurance coverage among several different competing insurance companies.

If you want to be confident that you’re getting the best price and coverage on Contractor Insurance, give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online!

As a contractor or restaurant owner, you’re probably looking for ways to cut costs and improve your bottom line. A Business Owners Policy – or BOP – is a flexible and affordable way to save on Commercial Insurance, but it isn’t right for every business.

An experienced insurance agent – like the independent agents at American Insuring Group – can help you determine if it’s right for your business.

Here’s what you need to know.

What Is a Business Owners Policy (BOP)?

A BOP combines Commercial General Liability (CGL) Insurance and Property Insurance – two types of insurance most business owners need to protect their business - at a discount.

Commercial General Liability Insurance, which may be required by a client or landlord, typically covers lawsuits that result in bodily injury or property damage that is caused by slip-and-fall accidents, third-party property damage, product liability, advertising injuries, and copyright infringement.

The expense of a lawsuit can have a devastating impact on a small business. According to a U.S. Chamber of Commerce report, legal issues are costing small US businesses more than $100 billion every year. Because small businesses are more likely to settle rather than get tied up in litigation, they are often the target of frivolous lawsuits, which is costing about $35.6 billion in settlements each year.

CGL does not cover employee injuries, which are typically covered by Workers’ Compensation Insurance.

Property Insurance covers damage to your building and its contents due to a covered cause of loss, such as a fire, explosion, storm, theft, or vandalism. Most Property Insurance policies do not cover earthquakes and floods; however, some policies cover a loss of income or an increase in expenses that result from property damage that is covered.  

For example, if a fire in your oven causes you to shut-down for a few days until repairs can be made, Property Insurance may include Business Interruption Insurance to cover the income you would lose by shutting down.

Another example is a fire in a contractor’s office that destroys files or materials required to conduct business.

Do I Qualify For a Business Owners Policy

Although they can save businesses money, BOPs are not right for every business, and not every business will qualify for a BOP. Typically, low-risk small businesses that meet the following criteria will qualify for a BOP:

• A small workspace
• Less than $1 million in revenue per year
• Fewer than 100 employees
• A low-risk industry
• A less than 12 months of Business Interruption Insurance requirement

As a contractor, you may think that your business is not a low-risk industry. Heavy construction, along with mid-sized and large construction businesses, may not qualify for a BOP, which is more appropriate for small contractors or subcontractors. However, it’s always a good idea to ask your insurance agent if this would be a good addition to your overall contractors insurance.

Is a BOP Right For My Business?

BOPs typically have a cap on policy limits – the maximum amount the policy will pay in the event of a claim. Make sure your CGL limit is enough to cover the cost of a potential lawsuit and make sure your Property Insurance limit would cover the value of your property.

If a BOP provides enough protection for your business, it could save you money.

What Doesn’t a BOP Cover?

The basic coverage of a BOP may not cover certain circumstances. For example, contractors may discover that equipment that is transported or stored on a job site may not be covered under CGL; that is what Inland Marine Insurance is designed for.

A restaurant owner who serves alcohol may find that a BOP may not cover a lawsuit that arises from an intoxicated person served at your restaurant; that’s what Liquor Liability Insurance for your restaurant covers.  

How Else Can I Save on Contractor or Restaurant Insurance?

To save even more on your business insurance costs, work with an independent insurance agent like those at American Insuring Group who 1) specialize in contractor and restaurant insurance, and 2) can compare the price and quality of your coverage among several competing insurance companies.

American Insuring Group has you covered. Give one of our experienced independent agents a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

We serve the greater Philadelphia, Reading, Pittsburgh, Lehigh Valley, Harrisburg, Lancaster, Erie, PA region and beyond.

Do you think that Commercial Property Insurance has you covered? Let’s go back to June 2019 for a moment.

Do you remember the fire and series of explosions at Philadelphia Energy Solutions? It released 5,239 pounds of deadly chemicals into the air and took more than 24 hours to extinguish. CNBC reported that it sent shock waves for miles and rained debris on nearby neighborhoods, and that “the blast was so powerful that a 38,000-pound barrel was launched 2,100 feet across the Schuylkill River, where it landed on the opposite bank.”

It was determined that the likely cause of the fire was a faulty pipe. Surprisingly, there were no serious injuries or fatalities. Five workers reported minor injuries, and experts do not believe there will be any health impact from the release of chemicals.

This is a prime example of why businesses need both Commercial Property Insurance and Business Liability Insurance. One covers your property, and one covers lawsuits.

In the Philadelphia Energy Solution incident, Commercial Property Insurance would help Philadelphia Energy repair or replace its refining complex. If the explosion was determined to be Philadelphia Energy’s fault, Business Liability Insurance would help cover any damage the explosion caused nearby neighbors or if the deadly chemicals were to have any negative effects on anyone.

According to the Insurance Journal, four out of ten businesses are likely to experience a property or general liability claim in the next ten years, and the average cost of a customer slip and fall claim is $20,000. Reputational harm claims cost an average of $50,000, and if a lawsuit is involved can average more than $75,000 for legal fees, settlements, and judgments. About 35% of all general liability claims result in a lawsuit.

What is Commercial Property Insurance?

Commercial Property Insurance helps repair or replace your physical assets, such as the building, furniture, computers, inventory, etc. if they are damaged by fire, hail, lightning, windstorms, vandalism, and explosions.  Typically, earthquakes and floods are not covered unless they are added to your policy.

The cost of Commercial Property Insurance is determined by the value of your assets, your location, the construction of your building, your industry, and how close the nearest fire hydrant and fire station are.

What is Business Liability Insurance?

There are many types of Business (Commercial) Liability Insurance that cover different liability risks. Business Liability Insurance protects your business from liability claims against your business by a third party, such as customers, suppliers, vendors, and employees.

Types of Liability Insurance

General Liability Insurance helps cover third-party lawsuits, like customers, suppliers, and vendors, but not your employees. It typically helps cover third-party personal injuries, property damage, and advertising injury. For example, if a customer were to be injured after slipping and falling at your business, they could file a lawsuit against you. General Liability Insurance would help cover the costs of that lawsuit.

Workers’ Compensation Insurance is required for most employers in Pennsylvania. It helps pay for medical costs and lost wages if an employee is injured on the job. It also reduces the risk of an employer being sued by an injured employee.

Professional Liability Insurance (A.k.a. Errors and Omissions Insurance) helps protect businesses against negligence and other claims made against them.

Product Liability Insurance helps cover lawsuits filed due to damages caused by a business’s products.

An experienced insurance agent can help you determine the types of business liability insurance that is right for your business.

Here's How to Save on Commercial Property Insurance and Business Liability Insurance

Here are two ways to save on the cost of Commercial Property and Business Liability Insurance:

• Bundle the two policies into a Business Owners Policy.
• Work with an independent agent, like the agents at American Insuring Company, who can compare the cost of your coverage with several different companies.

Want to learn more about lowering your Commercial Insurance Costs? Give one of our independent agents a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Return-to-work (RTW) programs help employers by helping retain experienced workers, reduce turnover, and control Workers’ Compensation Insurance costs. RTW programs help injured employees by promoting physical and mental healing, retaining social connections, providing financial security, and helping them retain skills. RTW programs even help improve productivity and morale among co-workers. 

Studies show that injured employees who are out of work for more than six months have less than a 50% chance of returning to work and 80-90% of injured workers would rather get back to work than collect disability.

What is a Return-to-Work Program?

The goal of RTW programs is to get an injured employee working again as quickly as possible while they are still recuperating. That may mean providing the injured employee with temporary, modified, or transitional duties to get them back to work more quickly.

Unless you are a doctor, you probably don’t know how long it typically takes an injured employee to heal from an injury – whether it’s a simple sprain or a more serious injury. To develop an effective RTW, it is important to have some expectations as to recovery times. The good news is that someone has already figured that out for you.

Evidence-Based Medicine (EBM) Injury Guideline

An EBM injury guideline tool can help reduce uncertainty by providing recovery timeframe estimates, including the average and median amount of time it takes an injury to heal. It is based on the type of work an employee does – sedentary, light, medium, heavy, or very heavy work.

The two most well-known tools are the ODG guidelines from the Work Loss Data Institute (WLDI) and the MDGuidelines from the Reed Group.

The ODG (official disability guidelines) was released in 1995 as an “evidence-based disability duration (return-to-work) guideline,” by the WLDI. In 2017, WLDI became part of MCG Health.

MDGuidelines are researched and evaluated by an academic-based research team. According to the Reed Group, “MDGuidelines empower employers, insurers and providers to successfully improve health and financial outcomes.” It links several data sources – OSHA, CDC, the National Hospital Discharge Survey, and the worldwide ICD-9 coding system.

An Example

If an employee suffers from a partial rotator cuff tear, and they have a sedentary or light job, it should take a minimum of zero days and a maximum of four days for that person’s body to physically heal enough for them to go back to their full duties at work. However, if that same employee has a heavy or very heavy job, it should take a minimum of 21 days and a maximum of 85 days to recover and be ready to go back to their full work duties.

If you utilize an RTW program, that means that even an employee in a heavy or very heavy job with this type of injury should be back to work within four days – not doing their original work duties but doing sedentary or light duty.

What might surprise you is that more than 50% of people aren’t back to work within the maximum amount of time (85 days) required for physical healing of a partial rotator cuff tear. Understanding recovery time and instituting an RTW program will lead to benefits for your injured employee, his or her coworkers, and your bottom line.

Want to Save Even More on Workers’ Compensation Costs?

Give the experienced independent agents at American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or connect with us online. Our independence means we're free to shop competing providers to get you the best deal. We’ll show you how to save on all of your worker's comp insurance needs in Philadelphia, PA and far beyond.

For many contractors, talking about Contractor Insurance is probably the equivalent of a root canal, but it doesn’t have to be that way. Finding an insurance agent who specializes in contractor’s insurance – like the American Insuring Group – takes a lot of the guesswork out of purchasing insurance.

However, it’s always wise to have a basic understanding, so you know what questions to ask and understand what your agent is recommending. Here is what you need to know about Contractor Insurance:

Who Needs Contractor Insurance?

Obviously, contractors need contractor insurance. That includes general, concrete, excavation, masonry, sheet metal, and paving contractors. But Contractor Insurance goes beyond protecting contractors. 

Here is a list of occupations/businesses that can benefit from Contractor Insurance:

• Appliance Repair Technicians
• Carpenters
• Debris removal
• Electricians
• Handymen
• Interior construction
• Locksmiths
• Painters
• Plumbers
• Property preservation
• Roofers
• Snow and ice removal
• Stucco and plastering

What Type of Insurance do Contractors Need?

Many factors go into the type of insurance policies you need, including whether or not you have employees and what outside parties you may be involved with (i.e., lenders, municipalities, etc.) require.

Here are the most common types of Contractors Insurance that help protect your business from injuries (employees, vendors, etc.), damage, lawsuits, and more.

Commercial General Liability (CGL)

Every contractor should have CGL because the construction industry comes with many risks.  CGL covers basic construction risks, such as lawsuits against your company, along with third-party injuries (visitors to your worksite) and property damage.

For example, if a visitor trips over a wire or slips and falls on a wet surface at your place of business or a worksite, you could be blamed for the injury. CGL typically covers attorney fees, judgments against your business, settlements, medical bills, and funeral expenses.

Another example where CGL can come in handy is f your ladder falls on a customer’s TV and damages it. CGL can help pay for the cost to repair or replace the TV. It can also help cover costs if that customer files a lawsuit against you.

Commercial Automobile Insurance

If you or an employee is driving a company-owned vehicle and is in an accident or causes damage, commercial auto insurance can help cover the cost of property damage, medical bills, lawsuits, and other expenses that can result from an accident.

If you drive a construction vehicle, transport tools or equipment, or have employees run errands for you, you should have Commercial Auto Insurance

Builder’s Risk Insurance

Builder’s Risk Insurance (Aka Course of Construction Insurance) can pay for damage resulting from fire, vandalism, or theft of tools, materials, and property while a structure is under construction.

Commercial Property Insurance

Commercial Property Insurance helps pay for repairs or replacement of your building, along with furniture, supplies, etc. if it is lost, stolen, or damaged.

Inland Marine Insurance

Commercial Property Insurance does not protect your property if it is not at the location listed on the policy. This is where Inland Marine Insurance comes in. It covers products, tools, and equipment while in transit or stored off-site (like a job site).

Workers’ Compensation (WC)

In Pennsylvania, most employers are required to carry Workers’ Compensation Insurance for their employees. If an employee is injured while working, WC can help pay for medical costs and lost wages.

Providing WC insurance to your employees also helps protect you against an injured employee suing your company. In most cases, injured employees are prohibited from suing their employers if WC is provided.

Professional Liability Insurance

Professional Liability Insurance (A.k.a., Errors and Omissions Insurance) covers legal expenses if you are sued for things like unsatisfactory, late, or incomplete work.

👉 Contact Us to Save on Contractors Insurance!

The cost of contractor’s insurance can vary significantly depending on your coverage and your deductible. Other factors that determine the cost of your premiums include what services you provide, your revenue, your location, and the number of employees.

• You may lower costs by bundling liability coverages into a package called a Business Owner’s Policy (BOP).
• You may lower costs by creating a safer work environment that results in fewer injuries and fewer claims.

• You may lower costs by working with an independent agent – like those at American Insuring Group – who can compare the cost of your coverage with several companies to ensure you’re paying the lowest premiums for the coverage.

Have more questions about saving on Contractors Insurance costs? The independent agents at American Insuring Group specialize in Contractors Insurance and can help you get the best price on the coverage you need, whether you're in Philadelphia, Pittsburgh, Erie, Berks County, or anywhere in PA or surrounding states.

Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online!

Every business comes with its share of risk, and a contracting business is no different. If anything, contractors face more than the average risk. Fortunately, there are things you can do to minimize or even eliminate many of those risks. Plus, Contractors Insurance acts as a safety net when, despite your best efforts, something does go wrong.

Your first step is to identify potential risks, so here are three of the top risks that contractors need to be aware of and tips to minimize those risks:

1. Injuries

Construction worksites are full of potential hazards, making construction one of the most dangerous occupations. According to the Occupational Safety and Health Administration (OSHA), approximately 20% of private-industry worker fatalities are in construction.

However, it isn’t just workers who pose a risk. Non-employees, such as vendors and clients, are often unfamiliar with safety rules, and can also be injured on construction worksites.

Minimize Risk of Injury

OSHA has identified the four biggest construction hazards – called the Fatal Four - as falls, electrocution, caught-in, and struck-by. These four hazards were the leading causes of death in 90% of all construction fatalities.

To minimize the risk of injury, develop and enforce a safety program, and all employees should receive proper safety training.

2. Equipment Damage or Loss

Tools and equipment are one of a contractor’s most vital assets. From something as small as a hammer to as big as a backhoe, you need them to get the job done. If a hammer is damaged, lost, or stolen, it can be quickly, easily, and fairly inexpensively replaced with a quick trip to Loews or Home Depot.

Unfortunately, the same can not be said for larger equipment such as excavators, bulldozers, tower cranes, dump trucks, etc. These items are just as vital to get jobs done but not as easy – or inexpensive to replace. If one of these items is damaged or stolen, it can put a serious crimp in your schedule… and your bottom line.

Minimize Risk of Theft

More than 11,000 pieces of heavy equipment were reported stolen in 2016, according to Construction Business Owner. Thankfully, there are things you can do to minimize the risk of theft, such as enforcing a theft-prevention policy, securing your job site with fencing, locking up all of your tools, and securing heavy equipment.

Minimize Risk of Damage

Employees should be well-trained in the proper use of heavy equipment and how to use them safely. It’s also essential that you take the time to read the equipment’s owner’s manual and adhere to factory recommendations. There should be a preventative maintenance program in place, and all equipment should be inspected before use – every time.

3. Faulty Work

You can be held liable for construction defects in completed projects or those that are not up to code. And a client can seek reimbursement if you have not complied with local, state, and federal building regulations. This not only hurts your bottom line but can also harm your business’s reputation.

Minimize the Risk of Faulty Work

To minimize this risk, review the contract’s terms and policy coverage, implement a quality control program, and understand and comply with building codes and regulations.

Insurance: Your Safety Net

Sometimes, despite your best efforts, a piece of expensive equipment is damaged, or a smart thief gets through your anti-theft measures. Repairing or Replacing that equipment can cost your business tens of thousands of dollars. The right insurance can help cover those costs.

Commercial Property Insurance

Your commercial property policy typically covers tools and equipment that are lost or damaged. It may also cover your lost income if you are unable to continue work without the damaged equipment. However, Commercial Property Insurance typically does not cover equipment that is mobile, in a vehicle, or stored at a job site.

Builders’ Risk Insurance (Aka Inland Marine or Course of Construction coverage)

Builders’ Risk Insurance typically protects structures, materials, and equipment that are in transit, onsite, or in a temporary location. Some policies also cover additional costs such as lost sales if construction is delayed.

License and Permit Bond

A License and Permit Bond guarantees that a business will operate in accordance with local, state, and federal laws and regulations. If there is a mistake, this bond will cover damages your client claims.  However, unlike other insurance policies, you are responsible for paying back anything your provider pays for the claim.

Protect Yourself with the Right Contractors' Insurance

Understanding these three risks, minimizing them, and having the right insurance is vital for a healthy bottom line and the success of any contracting business.

Because the American Insuring Group specializes in contractors’ insurance, we can help you with all three. Plus, as independent agents, we can ensure that you get the best price by comparing quotes and coverages from multiple insurance companies. So don't delay. Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

As an employer, you may look at Workers’ Compensation (WC) Insurance as a necessary evil, but the truth is Workers’ Compensation Insurance provides many benefits to employers as well as employees.

It is required by law for the majority of employers in Pennsylvania, and savvy employers understand the value of having Workers’ Compensation Insurance.

What is Workers’ Compensation Insurance?

The Pennsylvania Department of Labor and Industry defines Workers’ Compensation as “mandatory, employer-financed, no-fault insurance” that compensates employees who suffer a work-related injury for medical treatment and lost wages. The goals of WC are to 1) create safer workplaces, 2) promptly treat and compensate injured employees, and 3) reduce litigation costs.

In Pennsylvania, any employer with at least one employee who could be injured or develop a work-related disease is required to provide Workers’ Compensation for its employees, with very few exceptions such as federal workers, longshoremen, railroad workers, domestic workers, and some agricultural workers.

Here are 4 Benefits of Workers’ Compensation Insurance for Employers:

Regulatory Compliance

If an employee suffers a compensable work-related injury and the employer does not have Workers’ Compensation Insurance, the employer will be required to reimburse the state for not only direct costs of the injury, but also interest, penalties, attorney fees, and fees under the Workers’ Compensation Act.

An uninsured employer can also face the risk of civil litigation by the injured employee and the risk of criminal charges by the state.

Financial Benefits

By complying with the commonwealth’s Workers’ Compensation Insurance requirements, a business avoids the reimbursement costs stated above. Workers’ Compensation Insurance also protects employers from direct lawsuits by injured employees, eliminating the risk of costly legal fees and potential settlement.

Prevent Lawsuits

The Pennsylvania Workers’ Compensation Act does not allow employees to bring lawsuits against employers for work-place injuries if the employer provides Workers’ Compensation benefits.

Any form of litigation can have negative effects on a business. It can drain your company’s finances, time, energy, and resources. Litigation can also affect your relationship with your employees, customers, vendors, investors, etc.  A lawsuit can tarnish your company’s reputation and has been known to lower a company’s value and sales, and even force companies out of business.

Protection for a Vital Asset – Employees

Workplace injuries have far-reaching effects on employers’ costs, including lost productivity, retraining costs, and more. A safer work environment and fewer injuries are better for everyone – employer and employee alike.

Workplace injuries can cause negative physical and psychological effects on employees – both in and out of the workplace.  A serious injury can change an employee’s life forever, creating chronic pain, limited abilities, depression, and anxiety. One study found that anxiety affected more than 50% of injured workers and more than 25% experienced depression.

Fewer injuries mean lower Workers’ Compensation costs. That saving has become a great incentive for smart employers to create safer workplaces for their employees. To save on WC costs, many employers have developed safety programs and provide safety training.

Another Workers’ Compensation cost-saving measure employers often implement is a return-to-work (RTW) program. The goal of such a program is to get an injured employee back to work as quickly as possible, even if that means working part-time or having lighter duties. An RTW program benefits employees by improving morale, helping them retain social connections and skills, and providing financial security.

How to Save on Workers’ Compensation

Since Workers’ Compensation is required by law for most employers in Pennsylvania, you might as well embrace these benefits. However, that doesn’t mean you should pay more than necessary.

Give the experienced independent agents at American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or connect with us online. We’ll help you save on Workers’ Compensation costs by carefully comparing policies from multiple providers to ensure you get the right policy at the best price!