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Contractors' tools and equipment are a significant investment and vital for their operations. Contractor insurance provides financial protection against these essential assets' theft, damage, or loss. Without coverage, replacing or repairing expensive equipment could severely impact a contractor's finances.

Insuring High-Value Equipment

Contractors' equipment insurance typically covers various tools, machinery, and equipment used in construction and contracting work. The most expensive of these are mobile equipment and machinery that include:

• Bulldozers
• Excavators
• Backhoes
• Loaders
• Graders
• Forklifts
• Cranes
• Skid steers
• Pavers
• Compressors

Coverage might extend to equipment that is:

• Owned by the contractor
• Rented or leased from others
• Borrowed from others
• Newly purchased (usually with a grace period for reporting)

Replacement Cost vs. Actual Cash Value

Replacement cost and actual cash value are two distinct methods for determining the amount of compensation in contractors' insurance claims. They apply to various types of equipment and property covered under contractors' insurance policies.

Replacement Cost (RC): RC coverage provides compensation for the full cost of repairing or replacing damaged property with new items of similar kind and quality without deducting depreciation. For contractors, this means that if equipment or tools are damaged or stolen, the insurance will pay to replace them with new items of similar quality.

Actual Cash Value (ACV): ACV coverage pays the depreciated value of the damaged or lost property at the time of the loss. The insurance payout will be based on the current market value of the equipment, considering its age, wear and tear, and depreciation. The compensation will typically be lower than replacement cost coverage.

RC typically provides higher payouts than ACV, but due to the more comprehensive coverage, RC policies usually have higher premiums than ACV policies. On the other hand, ACV usually results in lower insurance premiums, which may be suitable for older equipment with significant depreciation.

Portable Tools Coverage

Portable tools include power tools (drills, saws, and generators), welding equipment, hand tools, and pumps. The policy might also cover specialized equipment like scaffolding, temporary structures, testing, and surveying equipment. Employee tools, computer equipment on the job site, and spare parts are typically insured.

Contractors’ equipment insurance covers many risks for portable tools and the more expensive equipment and machinery. Here are some of the most common risks:

Physical Damage

• Fire and explosion
• Theft and vandalism
• Accidental damage
• Collision with other equipment or objects
• Overturning of equipment

Natural Disasters

• Flood damage
• Earthquake damage
• Wind and storm damage
• Lightning strikes

Transit-Related Risks

• Damage during transportation between job sites
• Accidents while equipment is in transit

Job Site Risks

• Equipment breakdown
• Damage from falling objects
• Damage caused by inexperienced operators

Additional Coverages

• Debris removal expenses after a covered loss
• Rental reimbursement for temporary replacement equipment
• Coverage for newly acquired equipment (usually with a time limit)
• Limited coverage for employee tools and work clothing

Contact Us Today to Save on Equipment and Tools Coverage for Contractors

Do you have more questions? Contact American Insuring Group for the best rates for contractor insurance for construction firms. As independent brokers, we shop the market to find you the best deal on quality insurance!

Call us today at (610) 775-3848 or click here to start saving!

One of the most effective ways to lower Contractors Insurance costs is to reduce the number of claims. But unfortunately, construction sites are filled with hazards that cause injuries. In 2020, there were 165,300 injuries in construction, according to the U.S. Bureau of Labor Statistics (BLS), and the highest number of fatal work injuries (1,008) in any industry. 

One of the biggest causes of injuries in the construction industry is heavy equipment – boom lifts, backhoe loaders, bulldozers, etc. - which are, of course, an essential part of just about any worksite. According to OSHA, “Approximately 75% of struck-by fatalities involve heavy equipment such as trucks or cranes.” OSHA also reports that “being struck by vehicles, heavy equipment, and other objects is the top cause of injuries and the second cause of death for construction workers.” 

Heavy equipment accidents, such as the following, can cause lacerations, crushed or broken bones, spinal cord damage, internal damage, and more:

• Being pinned and/or crushed under heavy equipment
• Falling off heavy equipment
• Being struck by heavy equipment
• Rollover accidents
• Being run over or backed over by heavy equipment
• Being caught between two pieces of heavy equipment

Heavy Equipment Safety Tips

When you work with or around heavy equipment every day, it’s easy to become complacent, but everyone – operators and ground workers - should be alert wherever heavy equipment is used. Most construction site accidents can be avoided with these tips:

Owners/Managers Safety Tips

• Only allow trained (and, where required, certified) equipment operators
• Provide safety training
• Provide an operating manual to the operator
• Provide spotters where needed
• Install rollover protection on equipment
• Ensure good communication, such as standardized hand signals
• Maintain equipment
• Provide Personal Protective Equipment (PPE) where needed
• Provide proper lighting when appropriate

Operators Safety Tips

• Be familiar with the equipment
• Do not make sudden or sharp turns or swings
• Honk at intersections
• Wear seat belts
• Wear appropriate Personal Protective Equipment (PPE
• Do not jump on or off of the equipment
• Understand the company’s policy on the right-of-way
• Inspect equipment before using
• Inspect the ground conditions, looking for holes, uneven surfaces, obstructions, etc.
• Work in well-lit areas
• Avoid working parallel to slopes or embankments
• Do not overload vehicles
• Only ride in approved seats
• Stay alert

Ground Worker Safety Tips

• Wear high-visibility clothing
• Do not stay in equipment blind spots
• Avoid working near heavy equipment
• Ensure that the operator sees you before approaching them

 Crane Safety Tips

The Construction Center of Excellence reports that approximately 82 deaths occur every year due to crane accidents at construction sites and offers these safety tips specific to cranes, such as mobile, overhead, gantry, and jib cranes:

• Know load limitations and the weight of the load to be lifted.
• Evaluate the center of gravity of the load when attaching the rigging.
• Ensure rigging and cribbing is adequate to support the crane and the load.
• Understand the reach and travel limits of the crane before moving the load to avoid extra handling, sudden stops, and uncontrolled load swings.
• Ensure the crane is able to move the load without tipping.
• Inspect ground conditions, outriggers, and weather before lifting a load.

5 Backup Safety Tips

The Construction Center of Excellence reports that “one out of four accidents occur because of bad backing-up techniques and procedures.” The report also states that backing-up accidents account for 500 deaths and 1,500 injuries annually. (2014 study)” Here are backup safety tips.

• Inspect your vehicle and identify potential overhead or underground hazards
• Identify blind spots
• Work with a spotter when appropriate
• Watch your speed
• Identify overhead and underneath obstructions (powerlines, trees, trenches)

Lower Contractor's Insurance Costs the Quick and Easy Way

Want to learn more about how to lower the cost of your Contractors Insurance? Call American Insuring Group at (800) 947-1270 or (610) 775-3848 or connect with us online. We specialize in Contractors Insurance and understand the unique challenges and needs of the industry.

We'll compare competing insurance providers to find you the coverage you need at a great price!

As a busy contractor, it may be tempting to simply renew your Contractors' Insurance without reviewing it first. However, failure to review your insurance can result in paying more than you have to or being underinsured. Taking a few minutes to review your current policy, evaluate your current needs, and discuss it with a trusted insurance agent can make all the difference. 

While every business faces certain risks – employee injuries, property damage, etc., it could be argued that contractors face many challenges unique to the industry. For example, the construction industry is currently facing rising material costs, supply chain issues, a shortage of skilled laborers, increased risk of cybersecurity exposures, and more. 

Furthermore, according to the U.S. Bureau of Labor Statistics, 4,764 U.S. workers suffered fatal work injuries in 2020. The private construction industry accounted for 21.2% of those deaths. The construction industry fared better in non-fatal injuries but still experienced 174,000 injuries out of 2.7 million total non-fatal workplace injuries reported by the private sector. 

The right insurance will help protect you financially from those risks, but to ensure you have the right insurance for your business, you need to take the time to review your policies before renewing them. 

The best time to start the renewal process is three to four months before your current policy's expiration date. This gives you time to review your policy, gather information, determine if there are any changes in your insurance needs, and compare the cost of your coverage. 

7 Insurance Review Tips:

• Identify any changes to your business, such as…
  • Did you increase or decrease the number of employees?
  • Have you added, replaced, or sold any vehicles or equipment?
  • Did you add or change your location?
  • Has your business structure altered in any way?
  • Has your payroll changed?
  • Has the classification code for any of your employees changed?
    
    
• Review your current policy. Is all the information correct – payroll, classification codes, experience modifier, etc.?
  
  
• Run a loss run report. Loss Run Reports list the date of each loss and claim, a brief description of each claim, the amount paid to the insured, and whether or not the claim is closed. This information is used to determine how risky a business is to insure, which can affect the premium you pay or even if an insurance company will issue or renew a policy for your business. In addition, you can use the information to lower your insurance costs and even improve other areas of your business.
  
  
• Research industry trends. Factors such as litigation, a recession, or the availability of materials can affect your risks and coverages. Knowing what challenges you may face can help ensure you have the right insurance coverage.
  
  
• Work with an insurance agent who specializes in Contractors' Insurance. American Insuring Group specializes in insurance for small to medium-sized construction companies. We start by taking a close look at your business and then recommend the proper types of coverage to protect you, your business, your employees, and your assets.
  
  
• Ask about discounts and how you can lower your premiums. Some insurance carriers offer a discount for the following:
  • Combining policies
  • Paying your premium upfront (rather than monthly payments)
  • Paying by electronic funds transfer
  • Allowing them to access your driving data via an electronic logging device (ELD)
  • Installing certain safety features (burglar alarms, sprinklers, etc.)
    
    
• Compare the cost of your coverage with several insurance companies. The good news is that, unlike many agencies that sell only one insurance brand, American Insuring Group is a Trusted Choice independent insurance agency. That means we are free to offer not just one but more than 25 competing brands of insurance to ensure you pay the lowest rate for your insurance coverage.

 Who to Call for the Best Rate on Contractors' Insurance

Whether it's general contracting insurance, construction insurance, contractor workers comp, carpentry, HVAC, handyman, or any other type of insurance, American Insuring Group has you covered!

Contact us today at (800) 947-1270 or (610) 775-3848, or connect with us online and start saving on Contractors' Insurance costs today!

People often refer to Contractor Insurance as a safety net, but I ask you to stop and think about this accurate but often-overused analogy. In a circus, a safety net is used below performers who are walking across a tight rope or acrobats flying through the air high above. If they fall, the safety net could save their lives. Likewise, the right Insurance can protect the life of your business.

Risks in Contractor Industry

Every business is open to risk, and the construction industry is more so than many other industries. According to a report published by the Center for Construction Research Training, in 2019, 79,660 nonfatal injuries were reported in the construction industry. Furthermore, "… it was consistently higher than all industries combined… Construction injuries were also more severe, as they typically caused more missed workdays than injuries in all industries."

And these injuries were not confined to larger construction companies. That same report states, "the injury rate among construction establishments with 11 to 49 employees was five times the rate for establishments with 1,000 or more employees."

These injuries are costing companies billions of dollars every year. The National Safety Council (NSC) reports, "The total cost of work injuries in 2019 was $171.0 billion. This figure includes wage and productivity losses of $53.9 billion, medical expenses of $35.5 billion, and administrative expenses of $59.7 billion." Individually, that translates to $1,100 per worker, $1.2 million per death, and $42,000 per medically consulted injury. Do you have enough money to cover those kinds of costs without jeopardizing your business? Probably not!

Another risk all businesses face is lawsuits. According to a Small Business Administration (SBA) study, 36 to 53% of small businesses were involved in lawsuits, and when a case goes to trial, it costs companies $3,000 to $150,000 to resolve. So how would a lawsuit affect your bottom line?

Then there is theft. Construction equipment theft results in $300 million to $1 billion in losses each year (and that's an old statistic). Studies show that construction equipment is an easy target for thieves because:

• Equipment is often left at unsecured sites when not in use
• Many sites are located in remote locations
• Equipment is easily accessible
• There are no standardized PINs or serial numbers, making equipment challenging to track.

Could you easily replace a $75,000 bulldozer without affecting your business? Probably not!

Here is a brief description of various types of insurance that can help protect your employees, your assets, and your business.

How Insurance Protects Your Employees

Without employees, you could not get the job done, so it's a good idea to take care of your employees and consider them an asset. In Pennsylvania (and most other states), all employers are required to carry Workers' Compensation Insurance, which covers lost wages, medical expenses, disability expenses, and funeral costs for employees who are injured on the job.

Failure to carry Workers' Compensation coverage for your employees can lead to a $2,500 fine and up to one year in imprisonment for each day the employer fails to maintain WC coverage. Felony convictions can result in a $15,000 fine and up to seven years imprisonment for each day the employer intentionally violated this requirement. Furthermore, you may be responsible for paying all benefits awarded by a Workers' Compensation judge.

How Insurance Protects Your Assets

• Inland Marine Insurance helps cover damages that occur while a building is under construction.
• Commercial Property Insurance protects your physical assets from fire, storms, theft, etc.
• Commercial Vehicle Insurance protects against bodily injuries and property damage if one of your vehicles is involved in an accident.
• Builders Risk Insurance helps replace materials, tools, and lost, damaged, or stolen equipment.

How Insurance Protects Your Business

• General Liability Insurance protects your business from liabilities, such as bodily injury and property damage claims.
• Professional Liability Insurance protects your business if a client sues you for design errors or omissions.
• Pollution Liability Insurance protects your business if you're held liable for a pollution incident on a worksite.
• Cyber Insurance helps protect your business from data breaches.

How to Get the Right Contractors Insurance for Your Business

The best way to get the right Insurance for your business is to work with one of the independent agents at American Insuring Group who specialize in Contractors Insurance. They understand your unique risks and know the right questions to ask.

Plus, as independent agents, they will compare the cost of your coverage among competing insurance companies to ensure you pay the lowest price on your premiums. So give us a call at (800) 947-1270 or (610) 775-3848, or connect with us online.

Whenever the Bureau of Labor Statistics (BLS) releases its list of the deadliest jobs in America, some type of construction work is on that list.

According to the BLS, there were 991 fatal work injuries in construction in 2016. They listed first-line supervisors of construction trades and extraction workers as the ninth deadliest job with 134 fatal injuries and a fatal injury rate of 18 per 100,000 workers.

Roofers were number four (behind only aircraft pilots, fishers, and logging workers) with 101 fatal injuries and a fatal injury rate of 48.6 fatal injuries per 100,000 workers.

It's Wise to be Properly Insured 

No one would argue that construction is a dangerous job, and one of the elements that make it dangerous is the use of heavy equipment. According to the Center for Construction and Research Training (CPWR), vehicles and heavy mobile equipment caused 7,681 deaths from 1992 to 2010 with about 404 deaths annually.

Plus, even when vehicles and equipment are involved in an accident, they are often not listed as the cause of death. Given these facts, it's clear that having the proper contractor insurance is key for those in the construction industry. 

Types of Dangerous Heavy Equipment

Cranes have been the most dangerous heavy equipment machinery used in the construction industry for the past two decades. CPWR found that from 1992 through 2006, 632 of all the construction fatalities reported were caused by cranes. In 2008, crane collapses caused 25 deaths and 59 injuries, contact with overhead power lines resulted in ten fatalities and eight injuries. Contact with crane load caused six deaths and ten injuries.

But cranes aren’t the only dangerous type of heavy equipment. Here is a list of the top five most dangerous construction equipment:

1. Cranes
2. Bulldozers
3. Dump trucks
4. Backhoes
5. Excavators

Heavy Equipment Safety

Yes, experience does go a long way to ensure the safety of heavy equipment operators and those working around them. The danger comes when someone who has been working on the job for a long time is lured into a false sense of security and lets their guard down.

Distractions Can Cause Accidents

Today, one of the most common dangers may be simple distractions – both external and internal - that can affect veteran and novice heavy equipment operators alike, and many of these distractions can be avoided.

Before cell phones became so ubiquitous, many heavy equipment operators listened to radios. This was distracting enough (and could keep the operator from hearing if something is wrong with the machinery or someone is shouting at them), but cell phones have taken that distraction to a whole new level. 

Today’s cell phones allow operators to listen to music, text, watch videos, play games, check social media, search for information online and make phone calls. Some operators use earbuds to block out external noises. All of this can lead to distraction and danger.

The Occupational Safety and Health Administration (OSHA) has addressed the use of cell phones in cranes. OSHA states; “The [crane or derrick] operator must not engage in any practice or activity that diverts his/her attention while actually engaged in operating the equipment, such as the use of cellular phones (other than when used for signal communications).”

While OSHA doesn’t address this with other types of heavy equipment, it’s a smart safety measure to employ across the board to both operators and those working around heavy equipment.

Do You Have a Safety Policy? 

The best way to avoid distractions of any kind and keep your workers safe is to have a safety policy in place that forbids the use of cell phones while operating or working around heavy equipment, educate workers on that policy, and address any issues as soon as they arise.

Protect Your Business with the Right Type of Insurance

Unfortunately, accidents still happen, but the right insurance can help protect you and your employees if an injury does occur. Workers Compensation Insurance, which is often a state mandate, can provide wage replacement and medical benefits to employees injured on the job.

Commercial Liability Insurance can help protect your business from lawsuits. Various types of insurance can be combined to create a custom Contractor Insurance policy as well. 

To learn more about these and other types of commercial insurance, call American Insuring Group at (800) 947-1270 or (610) 775-3848 or contact us online.

 

Have you ever arrived at one of your construction sites eager to start the day only to find that a piece of heavy equipment is missing, and a $250,000 lump is forming in your throat?

Theft of building materials, tools, or heavy equipment can set a project back and cost you thousands of dollars, not to mention raising your commercial vehicle insurance rates.

But it isn’t just about the cost of replacing the stolen equipment; it’s also the associated costs of theft such as lost productivity, rental fees, project overrun penalties, and higher insurance premiums.

Construction Equipment Theft Trends 

Insurance Services Office, Inc. (ISO) reports indicate that theft accounts for more than fifty percent of heavy equipment loss and is increasing up to 20 percent each year. Experts estimate that losses (including associated costs) from construction site theft is $1 billion or more each year.

How To Protect Your Construction Site From Theft 

While those statistics are frightening, there are steps you can take to make your site less attractive to would-be thieves, to make it more difficult for them, and to help reduce theft on your job sites:

Develop and enforce a theft prevention policy
First, you need to assess the job site. Some safety measures apply to any job site, while others are more site-specific. For example, some job sites – such highway projects that move every day - are more difficult to secure than others. All of your managers, employees, and subcontractors should be aware of the consequences of theft and specifically your prevention policy.

Secure your job site 
For some job sites, fencing is your first line of defense. Ideally, fences should be made of a see-through material (so thieves are visible from the outside), at least eight feet high, with barbed wire or razor tape at the top. Since gates tend to be the most vulnerable part of fencing, have only one entrance whenever possible and use high-security padlock that uses a key rather than a combination, which is easily shared with thieves. Keep track of who is assigned a key and where those keys are at all times. Post “Warning: No Trespassing” signs along the perimeter of your worksite. Lighting – which is low-cost, flexible, and can be used with other security devices – around the perimeter directed at the job site is also a key deterrent.

Secure your equipment
Lock up all tools and building materials in storage boxes and cargo trailers with tamper-resistant locks and chains. Securing heavy equipment can be as simple as removing batteries or lowering blades and buckets. You can also add additional security measures such as locks that immobilize controls or keep the wheels from moving, alarms, and fuel and ignition cut-off switches.

Unlikely to Recover Stolen Equipment 

Even with all these measures, determined thieves sometimes find a way especially when you have no choice but to store your equipment in an unprotected and remote location. According to the International Risk Management Institute (IRMI), as little as 10 to 15 percent of equipment stolen from work sites is ever recovered. Again, that statistic is frightening, but there are steps you can take to improve the chances of recovering your property.

How to Improve Your Chances of Recovering Stolen Equipment

Keep detailed records of your equipment
Starting in 2000, equipment manufacturers began using a standard worldwide 17-digit product identification number (PIN) system. Engrave this number on all of your equipment so that police can easily identify it if it is recovered. Keep track of all equipment on the worksite including photos, make, model, and PINs.

Register your construction equipment
Register your equipment with a company like the National Equipment Register or the Heavy Equipment Registration to help law enforcement identify and recover your equipment.

Get Protected - Get the Right Insurance
The final theft protection available to you is the right insurance. Commercial general liability (CGL) insurance usually only covers your equipment in the event of damage, not theft. Builders risk insurance is designed to protect your equipment in the event of losses caused by theft and other perils that can occur, and inland marine insurance, also known as tools and equipment insurance, is designed to protect property in transit.

Contact Us for the Best Insurance to Protect Your Construction Equipment

American Insuring Group specializes in all types of commercial insurance and can help determine the best insurance to protect your equipment. Give us a call at (800)947-1270 or (610)775-3848 or contact us online.  Our independent agents are free to shop the insurance market of competing providers, matching up your needs with their policies to find the best fit at the right price. Don't delay, call today to get protected and start saving!