When you ride the Tube (aka the subway) in London, you’ll probably hear “mind the gap!” as you board your train.

“Mind the gap” is a warning to rail passengers to be careful when crossing the gap between the station platform and the train door. If you don’t “mind the gap,” you could fall between the train and the platform and cause serious injury.

“Mind the gap” is also good advice when discussing insurance for contractors! There are lots of moving parts with every construction project – from multiple subcontractors to heavy equipment and power tools. Each of those parts pose different types of risk, and if you don’t have the right insurance to protect you from those risks, you’ll have gaps in coverage that could cause serious injury to your bottom line.

Here are 3 coverages that often create insurance gaps for uninformed contractors:

#1 - Aggregate Coverage

There are two types of aggregate endorsements a contractor can purchase: a per policy and a per project aggregate. A per policy aggregate sets the total amount an insurer will pay for all of your claims during your policy’s term whether you have ten projects or 100 projects during that time.

A per project aggregate ensures that you have equal coverage on a per project or per location basis, which could significantly increase the amount the policy could pay.

Some insurance companies automatically add a per project endorsement to a contractors’ commercial liability policy, but some don’t. If you don’t clarify this from the start, you may not be comparing apples to apples thinking one insurance quote is a real deal when in fact it could leave you with a gap in your insurance. 

#2 - Professional Liability Coverage

There are two basic types of liability coverage contractors may need- general liability and professional liability. Commercial General Liability (CGL) insurance usually covers liability claims for property damage and bodily injury. It helps cover legal fees in the event of a lawsuit against your company and is required by most banks and clients.

However, not every insurance claim is the result of an accident or injury. As projects continue to get more complicated and the line between the design firm and contractor become more blurred, contractors may find unexpected gaps in their liability coverage. A contractor who finds himself in a lawsuit claiming negligence, misrepresentation, defective materials, or faulty recommendations may not be covered by CGL.

Professional liability coverage (aka errors and omissions) goes beyond standard liability and covers liability for professional services such as engineering, design, and construction management operations.

#3 - Subcontractor Coverage

Many contractors work with subcontractors. If you’re one of them, you need to ensure that you have two documents from every subcontractor you work with upfront to protect your business from damage caused by those third parties: a certificate of insurance that lists you as an “additional insured” and a signed “hold harmless” agreement.

You will need to list all subcontractors that you work with and document third-party certificates with your insurance carrier, and if that carrier finds a subcontractor that is not insured, you could end up paying a much higher rate, open you up to workers’ compensation costs, and force you to take responsibility for claims that aren’t your fault.

Avoid the Gaps – Get the Right Construction and Contractor Insurance!

An insurance company that specializes in contractor and construction insurance– like American Insuring Group –we’ll work to eliminate the gaps in your coverage. We know what questions to ask you and what gaps “to mind.” 

So, give us a call at (800) 947-1270 or (610) 775-3848 or check us out online. Our experienced independent agents will not only help you mind the gaps but also help ensure you get the best prices because we search, compare and analyze policies and pricing among many competing providers.

Call or click today to start saving!

A few weeks ago we began discussing the Occupational Safety and Health Administration’s (OSHA) Fatal Four. These are four safety hazards that account for the majority of all construction worker deaths.

Understanding how to recognize and prevent these hazards can save lives, improve employee morale, and help reduce your contractor insurance costs 

Again, the Fatal Four include the following hazards (statistics are from 2016).

• Falls accounted for 38.7% of deaths
• Being struck by an object accounted for 9.4%
• Electrocutions accounted for 8.3%
• Caught-in/between accounted for 7.3%

We covered caught-in/between hazardsand electrical hazardsin previous blogs. Today our focus is on the second highest cause of fatalities (9.4%) among construction workers – struck-by hazards.

What are Struck-By Hazards?

There are a lot of moving parts at a construction site and many hazards that can cause struck-by injuries. When a worker comes into forcible contact with an object that is flying, falling, swinging, or rolling, a struck-by injury can occur.

The four most common causes of struck-by hazards in the construction industry are flying objects, falling objects, swinging objects, and rolling objects.

Prevention:

Your first line of defense against this type of injury is being aware of your surroundings and using hard hats and personal protective equipment (PPE).

Hard hats should be worn on job sites at all times. They should be properly adjusted to sit firmly and securely on the head, and they should be inspected regularly for cracks, gouges, dents, and other damage. Exposure to sunlight and cleaning solvents can damage or weaken a hard hat, so they should be cleaned with mild soap and stored out of direct sunlight. 

If a hard hat is damaged or worn out, replace it immediately. It’s much cheaper to replace a hard hat than it is an employee.

Employees should also be equipped with additional PPE where appropriate. PPE that can protect against struck-by injuries may include safety glasses, face shields, and steel-toed boots. All PPE should meet American National Standards Institute standards, and all should be inspected regularly and replaced when damaged or worn out.

Here are preventative measures for each of the most common types of struck-by hazards.

Stuck-by Hazard 1: Flying Objects

Nail gun discharge accidents are the most common cause of flying-object injuries. However, thrown debris or tools, a tip flying off a saw blade, or any other object that is flying around the work site can also cause injuries.

Prevention:

Employees should stay clear of the line of sight when a nail gun is being used. And because nail guns create enough force to penetrate plywood and sheetrock, employees should also be aware if a nail gun is being used in an adjacent room. Check out “Nail gun Safety and Workers Compensation” for more information about nail gun safety.

Additional safety measures include regular inspection of all power tools, the use of protective guards, and wearing safety glasses, face shields, or goggles when working with power tools.

Stuck-by Hazard 2: Falling Objects

This type of injury can be caused by falling tools or materials falling off edges or suspended from a crane.

Prevention:

Areas, where work is being performed overhead, should be cordoned off, so employees avoid those areas. Employees who are working overhead should use toeboards, screens, debris nets, and catch platforms to keep tools and materials from falling 

Employees should also be aware of suspended loads and never walk or position themselves under those loads.

Stuck-by Hazard 3: Swinging Objects

Sometimes materials that are being mechanically lifted can begin to sway and can strike a nearby worker.

Prevention:

Employees should be aware when a load is being moved and avoid the swing radius of that load. Workers should also make sure they aren’t in a blind-spot of the heavy equipment operator.

Stuck-by Hazard 4: Rolling Objects

Moving vehicles or heavy equipment usually causes this type of injury, but it can also be caused by objects that roll, move, or slide into an employee.

Prevention:     

First, heavy equipment operators should be adequately trained in how to operate the machinery safely. Second, other employees should be aware of where heavy equipment is being operated and understand where the operators have limited or no visibility.

Contact Us and Get Ready to Save on Contractor Insurance!

These preventative measures can significantly reduce worksite injuries and death, which can lead to lower contractors’ insurance premiums. Another way to lower your contractor insurance costs is to contact American Insuring Group at (800) 947-1270 or (610) 775-3848 or connect with us online. 

As independent agents, we always compare the cost of your construction insurance among competing insurance companies to make sure that you’re getting the right coverage at the very best price!

This is the final blog post addressing what OSHA has labeled the “fatal four.” The fatal four are four hazards that are responsible for 63.7% of all construction worker deaths.

Recognizing and preventing these hazards will save lives, improve employee morale, and help reduce insurance costs.

The Fatal Four include the following hazards (statistics are from 2016):

Today, we’ll be addressing the most common cause of construction site injuries and the leading cause of construction worker deaths – falls.

4 Leading Causes of Falls and How to Prevent Them

1 - Unprotected edges, wall openings, and floor holes

Falling from a higher level can result in sprains, breaks, concussions, and death. Unprotected edges, wall openings, and floor holes can cause workers to fall from great heights. OSHA requires the use of guardrail systems, safety net systems, and/or fall arrest systems when workers are exposed to a fall hazard of six feet or more above a lower level.

Guardrails – the only solution that prevents falls from happening - must be 39 – 45 inches in height from the surface, the top rail must be able to withstand a minimum of 200 pounds and the middle rail 150 pounds.

Safety nets must be placed less than 30 feet below the work area and must extend at least eight feet out from the worksite. Border ropes must have a minimum strength of 5,000 pounds.

Fall arrest systems consist of the anchorage, connecting device, and full-body harness. Arrest systems should be inspected before each use.

Other safety precautions to avoid this type of fall include the following:

• Before cutting a hole, barricade the work area if possible.
• Holes should be covered or guarded immediately, and the covers should be able to support two times the weight of employees, materials, and equipment.
• Clearly mark where there is a hole.

2 - Improper Scaffolding Construction

According to the Bureau of Labor Statistics (BLS), accidents involving scaffolding account for approximately 4,500 injuries and 50 deaths in the U.S. every year.  The BLS found that 72% of scaffolding injuries are caused by the planking or support giving way, the lack of guardrails and/or fall protection, and objects falling from overhead.  OSHA requires that employees on scaffolding that is higher than ten feet above a lower level must be protected.

Safety precautions to avoid falling from scaffolding include the following:

• Construct scaffolding according to manufacturer’s specifications
• Install guardrails
• Brace or tie scaffolding to the building if height or width of scaffolding calls for it.
• Use metal walk boards instead of wood if possible
• Ensure safe access to and from the platform
• Follow the load capacity guidelines
• Wear hard hats and other PPE (Personal Protective Equipment)

3 - Unguarded Protruding Steel Rebars

The chance for injury from a fall from an elevated position increases significantly if protruding steel rebars are left unguarded, and even the simple trip or fall can cause serious injury when steel rebars are left unguarded. Unguarded rebars can cause cuts, abrasions, impalement, and other injuries.

Assess the site for rebar-related hazards. Cap any protruding steel rebars with steel-reinforced rebar caps or wooden troughs or bend the rebar at the very least. Make sure that all employees wear appropriate PPE and those working above rebars wear fall protection.

4 - Misuse of Portable Ladders

Falls from ladders are an all-too-common cause of injury at construction sites. Improperly placed ladders can shift or fall, and workers can slip or lose their balance when working on ladders. To avoid injuries, the proper ladder should always be used for the job, it should be safely positioned on a solid surface, and workers should take their time when working on ladders.

Most accidents with ladders are caused by the following:

• Incorrect ladder choice
• Improperly secured ladders
• Trying to carry tools and equipment while climbing a ladder
• Lack of attention
• The condition of the ladder
• Ladder placement
• Not taking your time

Safety precautions when using a ladder include the following:

• Place ladders so the side rails extend at least three feet above the landing
• Attach the top and bottom of the ladder to something secure to keep it from slipping or falling
• Use the correct size ladder so that it can be placed at a stable angle
• Maintain three points of contact when going up or down a ladder
• Stay near the middle of the ladder
• Face the ladder when climbing up or down 

Imagine if you could eliminate (or at least significantly reduce) falls at your worksites. Nearly 40% of accidents would be eliminated, and you’d be left with happier, safer, and more productive employees and lower insurance costs.

The Quickest Way to Lower Your Contractor Insurance Cost

Another way to save on construction and contractors insurance is to work with the independent agents at American Insuring Group.

We work with multiple insurance companies to ensure that you get the very best price on all your Contractor Insurance needs. 

Get started by calling us today at (800) 947-1270 or (610) 775-3848 or contact us online.

A few weeks ago we introduced you to the Occupational Safety and Health Administration’s (OSHA) Fatal Four – four safety hazards that account for the majority of all construction worker deaths (click here for our post).

Understanding how to recognize and prevent these hazards can save lives, improve employee morale, and help reduce contractor insurance costs.

The Fatal Four include the following hazards (statistics are from 2016).

• Falls accounted for 38.7% of deaths
• Being struck by an object accounted for 9.4%
• Electrocutions accounted for 8.3%
• Caught-in/between accounted for 7.3%

We covered caught-in/between hazards in our prior post, and will now turn our attention to electrocution hazards. 

Electrocution – Death by Electrical Shock

Exposure to lethal amounts of electrical energy causes electrocution, which is death by electric shock. The human body acts as a conductor when it comes in contact with an electrical current and electricity flows through conductors to create complete a circuit.

Exposure to as little as 50-100 mill amperes of current can cause death by electrocution. Most 120 Volt circuits carry 15-20 amperes of current, which is 300 times what is needed to kill someone by electrocution.

Electrical hazards can cause electric shock, electrocution, burns, arc flash or blast, fires, and explosions, which can lead to severe injuries or death. Common causes for electric-related injuries include getting too close to overhead and underground power wires, damaged equipment, faulty wiring, improper cord use, lack of GCFIs, and wet or cramped conditions.

According to the Electronic Library of Construction Occupational Safety & Health, the major causes of electrocutions in electrical workers and other construction workers in the U.S. between 1992 and 2003 included the following:

• Electrical wiring and equipment (accounted for the majority of deaths among electrical workers)
• Overhead power lines (accounted for the majority of the deaths among non-electrical construction workers)
• Machinery, appliances

Unaware of the Risks

Many construction workers are not aware of potential electrical hazards, which makes them more vulnerable, and it is your responsibility to make your employees aware. OSHAstates, "The employer shall instruct each employee in the recognition and avoidance of unsafe conditions and the regulations applicable to his work environment to control or eliminate any hazards or other exposure to illness or injury."

According to OSHA, these the most frequently cited electrical standards involving electrical hazards in construction: 

• General requirements for electrical conductors and equipment
• Wiring design and protection
• Wiring methods, components, and equipment for general use
• General requirements for protection of employees

Electrical Safety Measures That Can Lead to Lower Contractor Insurance Costs 

1 - Overhead Power Lines

Both overhead and underground power lines carry a high voltage. Injuries with power lines are often caused by contact with heavy equipment, ladders, lifts, etc.

The best way to avoid this hazard is to be aware of the location of power lines and maintain a safe distance. OSHA’s minimum clearance distance from overhead power lines is 2 feet for less than 300 volts, 10 feet for 300-50,000 volts, and 10 feet plus 4 inches for every 10,000 volts over 5,000 volts. This area should be cordoned off. If you have no choice but to work around power lines, contact the utility company to have the lines de-energized.

Other precautions include using nonconductive tools and equipment and avoiding the storage material directly underneath power lines. 

2 - Ground-Fault Protection 

According to OSHA, all 120-volt single-phase, 15- and 20-ampere receptacle outlets that are not part of the permanent wiring of the structure that employees use must have ground-fault circuit interrupters (GFCIs). A GFCI is a fast-acting circuit breaker that shuts of electricity when it senses small imbalances in the circuit. GFCIs only protect against the ground fault, but that is the most common form of electric shock hazard. It also protects against fires, overheating, and destruction of insulation on wiring.

3 - Lockout/Tagout Procedures

This procedure requires that a designated individual be assigned to make sure that all machinery and equipment are turned off and disconnected before performing service or maintenance. That individual will also lock or tag the energy-isolating device(s) to prevent the release of hazardous energy and take steps to verify that the energy has been isolated effectively.

Following this procedure helps safeguard employees from the unexpected energization of hazardous energy during service or maintenance. A qualified person should also be on hand when the locks and tags are removed, and the equipment is re-energized. 

4 - Maintain Cords

There are a lot of portable tools that make life much easier at a construction site, and most of these tools come with flexible cords. These cords can be damaged by staples, rubbing against other objects, or by age. If the electrical conductors become exposed, those cords can become a hazard causing shocks, burns, or even fire. It’s important to regularly inspect all equipment and extension cords for cuts, frays, or exposed bare wires.  

5 – Other Safety Measures

Other safety measures to reduce injuries associated with electrical work include the use of insulation, guarding, electrical protective devices, and compliance with OSHA’s regulations on electrical safety. OSHAoffers many resources to help ensure the safety of your workers.

The safer your employees, the lower your insurance costs. It’s a win-win!

Don't Miss This Easy Way to Save on Contractor / Construction Insurance!

A great way to lower your contractor insurance costs is to simply contact American Insuring Group at (800) 947-1270 or (610) 775-3848 or connect with us online.

Our independent agents will compare the cost of your construction insurance options among several reliable insurance companies to make sure that you’re getting the right coverage at the best price!

Call today to get started.

This is the first in a series of four blogs that will focus on what OSHA (Occupational Safety and Health Administration) calls the Fatal Four – the four main safety hazards that account for a majority of all construction worker deaths, and therefore have the greatest impact on workers compensation insurance costs for the construction industry.

In 2016, there were 4,693 worker fatalities in private industry, and 991 of those fatalities were in construction. That means that 21% or one in every five worker deaths were in construction. There’s no denying that worksites can be dangerous places to work.

63.7% of Construction Worker Deaths 

The Fatal Four were responsible for 63.7% of construction worker deaths in 2016; eliminating the Fatal Four would save 631 construction worker lives in the U.S. every year. Imagine how reducing injuries and fatalities that involve the Fatal Four could help your business lower contractor insurance costs, not to mention improve employee morale. 

The Fatal Four Hazards

Numbers are based on the 2016 construction industry:

• Falls accounted for 38.7% of deaths
• Being struck by an object accounted for 9.4%
• Electrocutions accounted for 8.3%
• Caught-in/between accounted for 7.3%

What are Caught-In/Between Hazards?

Caught-in/Between accidents caused 73 construction worker deaths in the U.S. in 2016. These accidents occur when someone (or a part of someone like a hand or leg) is caught, crushed, squeezed, compressed, or pinched between two or more objects including getting caught, struck or crushed from materials, equipment or a collapsing structure. Although similar to struck-by accidents, caught-in/between accidents are a result of crushing injuries and not the initial impact.

Examples of caught-in/between accidents include the following:

• Trenching cave-ins
• Being pulled into or caught in machinery and equipment including strangulation caused by clothing being caught in running machinery
• Being compressed or crushed between objects that are rolling, sliding, or shifting such as between a truck frame and hydraulic bed that is lowering

Trenching Accidents

One cause of caught-in/between accidents is improperly protected trenches and excavations. A trench that is five or more feet deep needs to have a protective system, and a trench that is 20 or more feet deep requires that a professional engineer design the protective system.

This includes proper sloping and benching to avoid collapse, shoring to support the sides, and trench boxes and shields to protect workers from being crushed or buried by a cave-in.

Another precaution is to avoid using heavy equipment near an excavation when workers are inside the trench to help prevent cave-ins and equipment falling into the trench.

Machinery Accidents

Follow manufactures safety instructions and do not remove safety guards from power tools or machinery. Wear loose-fitting clothing or anything that can get caught in moving parts and pull you in. 

When power tools and machinery are not being used or when doing any repairs or maintenance on them, the tools should be properly de-energized.

Heavy Equipment Accidents

Wear seat belts and safety restraints when operating a piece of heavy equipment and don’t overload or overwork the equipment to avoid tipping it over. When working around heavy equipment, remember that operators may not have a clear line of sight in every direction, so workers should not place themselves between a moving vehicle and an immovable object.

Reducing Accidents Through Training 

To reduce the number of injuries and fatalities caused by caught-in/between hazards, workers need to be adequately trained. They need to understand what hazards to look for and how to avoid them. If implementing these safety measures, saves even one life, isn’t it worth taking the time to train your employees properly? And as a bonus, you'll also help lower your contractor insurance rates.

How to Save on Contractor Insurance

Creating safer work sites is just one way to save on contractors insurance. Another way (and it's so easy) is to work with American Insuring Group. Our independent agents specialize in contractors insurance, so we can help determine the right coverage for you.

Plus, as brokers, we can compare the cost of that insurance among many competing insurance companies to make sure that you’re getting the right insurance protection at the best possible price.

To learn more, give us a call at (800) 947-1270 or (610) 775-3848 or find us online.

Murphy’s Law states that if something can go wrong, it will go wrong, and it’s a law that could have been written with the construction industry in mind! There are so many moving parts, activities, and different players all working on a location that has potential hazards around every corner.

So it’s essential that you ensure that you have proper construction and contractor insurance coverage to protect your business. Major losses can do more than just set your business back; they can put you out of business.

Here are four guidelines to minimize your contractor insurance losses:

1 - Carefully Inspect All Insurance Certificates

Every subcontractor you hire should provide certificates that prove they have the necessary insurance coverages, but it’s also important to thoroughly inspect these certificates, which provide only the bare minimum information such as the carrier and the limits of the insurance.

You should have a broker such as American Insuring Group who specializes in contractors’ insurance review all your subcontractors’ policies to ensure that there is enough coverage to protect you if that subcontractor causes an injury or damage and a claim is filed.

Subcontractors often try to save money by purchasing the least expensive insurance available, so you may want to require specific coverage limits, types of coverage, and exclusions based on the scope of work the contractor will be performing and the size of the project.

2 - Force Subcontractors to Take Some of the Responsibility

It’s always a good idea to have a contract in place that clearly states who is responsible for what before something happens including hold harmless or indemnity agreements to protect you from losses.

In addition, the written contract should state that a subcontractor is responsible for some portion of the deductible if they are in any way responsible for any losses. You can also shift some of your losses onto their insurance policies by requiring them to name your company as an additional insured on their policies.

3 - Consider Wrap-up Insurance

When you work on large-scale projects with dozens of subcontractors, it can become overwhelming to keep track of all the different insurance policies involved. This is a good time to consider purchasing General Liability Wrap-Up Insurance. This type of policy protects the owner, general contractor, and all enrolled subcontractors working on the project.

It can be purchased by either the owner or general contractor and is generally used for residential projects with construction costs starting at $10 million and commercial projects starting at $20 million. Wrap-up Insurance can provide cost savings, better control of insurance coverages, and the peace of mind that your business is appropriately protected in the event of a loss. Additional policies can be purchased for excess liability, professional liability, builder’s risk, and pollution liability.

Since the owner or general contractor covers the cost of Wrap-Up Insurance, you can help offset that cost by having subcontractors contribute to the cost of the insurance through bid deductions.

4 - Think Twice About Cost-Cutting Measures

The cost of liability insurance is based on the cost of the project, so it may be tempting to bring the cost of the project down by using cheaper materials. However, it’s important to remember that inferior materials can add to your losses because they’re more likely to wear out earlier, break, or malfunction in some way. You’ll want to weigh the cost savings with the risk.

Working With The Right Insurance Agency is Key - Contact Us Today! 

As you know, every project is unique. That’s why it’s so important to work with an insurance agent who specializes in contractors insurance and knows how to see that you’re adequately insured and protected. Give American Insuring Group a call at (610) 775-3848 or (800) 947-1270 or contact us online to speak with one of our contractors’ insurance specialists.