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To lower Contractors' Insurance costs, you need to reduce the number of accidents and subsequent claims. In other words, you need to create safer worksites. Unfortunately, construction sites are filled with hazards - power tools, heavy equipment, etc. – and potentially unsafe conditions. 

Toolbox Talks, defined by Harvard as "an informal group discussion among employees of an individual department that focuses on a particular safety issue," is one way to create a safer worksite and lower Workers' Compensation (and other) costs. You can choose many safety topics for your Toolbox Talk, but one crucial topic is "How to Recognize and Report Unsafe Conditions." 

First Step

First, you must create a workplace where employees feel comfortable reporting potentially unsafe conditions. Here's why. 

Studies have found that nearly 50% of employees did not report a safety issue to their supervisor. The reason? Some employees didn't feel comfortable reporting a potential issue – some even felt it was unsafe. In addition, some employees didn't feel it was their responsibility or that nothing was done when safety hazards were reported in the past. 

It is your responsibility to develop a culture of safety, to encourage your employees to report potential issues, and to make them feel safe doing so. It is in your best interest and theirs because it can minimize accidents and injuries, create happier, more engaged employees, and help prevent litigation and lawsuits against your company. 

Furthermore, ensure you have a straightforward process for reporting potentially unsafe conditions that you communicate to your workers. 

Most Common Hazards on a Construction Site

The following list includes the four most common workplace hazards according to Occupational Safety & Health Administration (OSHA). According to the U.S. Bureau of Labor Statistics (BLS), more than 500 deaths could be prevented each year if the hazardous conditions leading to the Fatal Four were improved, making it a great place to start a Toolbox Talk about Recognizing unsafe conditions.

• Falls – Fall-related accidents are the most common cause of construction-related fatalities. This includes slipping or tripping, leading to falls and falling off ladders, roofs, scaffolding, etc.
• Caught-In or -Between – Examples of this type of hazard include cave-ins, being crushed between shifting objects or being pulled into or caught in machinery equipment.
• Struck-By – According to OSHA, this type of injury "is produced by forcible contact or impact between the injured person and an object or piece of equipment."
• Electrocution – OSHA states, "Electrocution results when a person is exposed to a lethal amount of electrical energy." It can occur when workers are exposed to burns, electrocution, arc flash, fire, or explosions.

OSHA offers an in-depth training program regarding these four Hazards. 

Recognizing Unsafe Conditions

Many accidents related to these and other hazards are preventable by increasing awareness and showing workers how to recognize unsafe conditions. Here are a few unsafe conditions workers should be aware of:

• Spills that aren't cleaned up
• Clutter
• Over-stacked loads
• Glare or shadows
• Unprotected edges
• Lack of signs cautioning workers about unsafe conditions, such as slippery surfaces
• Insufficient fall protection
• Unstable or unavailable scaffolding
• Faulty or unsupportive ladders or ladder misuse
• Failure to routinely inspect the equipment
• Poorly maintained equipment
• Frayed or damaged wires
• Unprotected power lines
• Power supplies that are not grounded
• Someone inspecting or repairing equipment that is not de-energized
• Using too many extension cords
• Lack of proper lockout/tag-out procedures
• Insufficient communication regarding safety
• Lack of appropriate PPE
• Lack of adequate safety training
• Lack of the right equipment to move heavy materials

 Call Us to Lower Your Contractor Insurance Costs!

The agents at American Insuring Group specialize in Contractors' Insurance, so we can ensure that you have the right insurance coverage to protect your business. In addition, as independent agents, we can ensure you pay the lowest premium for that coverage. Contact us at (800) 947-1270 or (610) 775-3848, or connect with us online and start saving on Contractors' Insurance today.

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!

One of the best ways to lower your Contractors Insurance costs is with a risk management plan..

The first two steps in a risk management plan are 1) identify risks and 2) prioritize risks.

The third step is to determine response strategies, which include avoidance, transference, mitigation, and acceptance. Today we'll delve into transference.

Transference is the act of transferring risk to a third party. The most obvious way to transfer risk is with a comprehensive Contractors Insurance policy, which transfers many risks to your insurance company.

Here are three examples of how to transfer risk to your insurance company:

• Injuries - If an employee is injured on the job, Workers' Compensation – which is required by law in PA and most states – provides wage-loss and medical benefits. If a visitor to the worksite is injured, General Liability Insurance will help cover medical expenses and legal costs if a lawsuit is filed against your business.
  
  
• Physical Damage - If your tools are stolen, a piece of equipment is damaged, or someone vandalizes your office, there are insurances – such as Commercial Property Insurance and Builders Risk Insurance - that help pay the cost to repair or replace those items.
  
  
• Faulty Work - If a client sues you for design errors or omissions, Professional Liability Insurance helps cover your legal costs.

It is also possible to transfer risk to yet another third party, such as a supplier or subcontractor, with contractual risk transfer. "When astutely negotiated, a construction contract can become a valuable risk management tool," the International Risk Management Institute (IRMI) states. "Liabilities can be equitably distributed among the contracting parties—general contractor, subcontractors, suppliers, architects, and the owner."

What is Contractual Risk Transfer?

"Contractual risk transfer is the ability to move a risk/loss from one party to another through the language written in a contract," according to Business Credentialing Services. "Contractual risk transfer is when the language in a non-insurance agreement excuses one party from financial or legal responsibility associated with specified actions, inactions, injuries, or damages. In contractual risk transfer, one party agrees to indemnify and hold another party harmless in a contract."

It's important to note that the Indemnitor – the entity that holds another party harmless if injury or damage occurs - is backed by their insurance policy.

Effective Contractual Risk Transfer

"Unfortunately, many construction contracts are drafted (or standard versions modified) by professionals with little knowledge of insurance coverage," IRMI states. "As a result, it is not unusual for contracts to shift liabilities to the contractor that are extremely difficult or costly to insure, or even uninsurable." Therefore, it is best to leave contract writing to the experts – a qualified attorney and one of the insurance agents at American Insuring Group who specialize in Contractors Insurance can help.

However, it's always good to understand the basics when discussing contracts and insurance with these experts. Here are five tips:

1. Often a contract will require a certificate of insurance; therefore, keeping those certificates well-organized helps save time and frustration.
   
   
2. Make sure whoever drafts your contract is aware of current insurance requirements and doesn't just copy from an existing contract.
   
   
3. Ensure that appropriate endorsements are attached to your contract.
   
   
4. Most states limit the risk that can be transferred.
   
   
5. Four endorsements crucial to the contractual risk transfer process include Additional Insured Endorsement, Primary & Non-Contributory Endorsement, Waiver of Subrogation Endorsement, and Alternate Employer Endorsement.

Work With the Right Insurance Agent and Save

The agents at American Insuring Group specialize in Contractors Insurance and can help execute your risk management plan. As independent agents, we check with multiple insurance companies to ensure you pay the lowest price for your insurance coverage.

Call us at (800) 947-1270 or (610) 775-3848, or connect with us online and start managing your risk today!

There are many types of Contractors’ Insurance designed to protect your business from unforeseen circumstances. However, one type of insurance that is somewhat unique to the construction industry is Builders Risk Insurance. 

What is Builders Risk Insurance?

Builders’ Risk Insurance - also called Course of Construction Insurance or Inland Marine coverage – is a temporary insurance policy that helps protect a renovation or new building while under construction. It typically covers a building, structure, materials, tools, and equipment on a job site, in transit, or stored elsewhere during construction or renovation. 

The following perils are typically covered under a Builders’ Risk Insurance policy:

• Theft
• Vandalism
• Fire
• Explosion
• Vehicle accident 
• Weather events, such as hail or lightning

Some Builders’ Risk policies also include the following perils:

• Costs incurred by delayed construction, such as lost rental income or loan interest
• Removal and disposal of pollutants
• Damage to temporary structures
• Changes required to meet environmental standards 

The following perils are typically NOT covered under a Builders’ Risk policy:

• Wind
• Earthquake
• Flood
• Employee theft
• Normal wear and tear
• Mechanical breakdowns
• Terrorism
• Faulty work or materials
• Contractual penalties 

When Does Builders Risk Insurance Coverage End?

Most insurance policies have an insurance policy period that includes an effective and expiration date. Simply stated, those dates indicate when coverage from that policy begins and ends. However, the end date of a Builders’ Risk Insurance policy can be a little more complicated. 

Because the value of a structure being built or renovated increases over time, Builders’ Risk insurance factors this changing value into its pricing. Due to this unique situation, there are times when an expiration date may change. 

1. The owner of the property takes over

If an owner (such as the original property owner, bank, or purchaser) takes over the project (regardless of how complete the project is), the Builders’ Risk Insurance policy you purchased becomes invalid. 

2. The Project Is Abandoned

If the contractor walks away from the site with no intention of completing the project, the Builders’ Risk Insurance policy becomes invalid. 

3. The Property is Being Used for Intended Purpose

If all or part of the property is being used for its intended purpose during construction, the Builders’ Risk Insurance policy becomes invalid. 

4. The Project has been Completed for 30 Days

Once an occupancy permit or other completion confirmation has been issued, the Builders’ Risk Insurance policy becomes invalid. 

Once the Builders’ Risk Insurance policy has expired, other types of insurance are available to protect the property, which are often less expensive. For example, property insurance can be purchased when the property is being used for its intended purpose or when the project has been completed for thirty days, which is typically less expensive than Builders’ Risk Insurance. On the other hand, if a property has been abandoned, there is more risk for damage such as decay, vandalism, break-ins, and arson. Therefore, insurance to cover the property will be higher than Builders’ Risk Insurance.

Need Help With Builders’ Risk Insurance?

If you have questions about Builders’ Risk Insurance or any type of Contractors Insurance, be sure to speak with one of the experienced agents at American Insuring Group.

Not only do we specialize in Contractors Insurance, but as independent agents, we also compare multiple insurance companies to ensure you pay the lowest premium for the coverage you need.

Call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

One of the best ways to lower Contractors’ Insurance (and other) costs is to create safer worksites. But unfortunately, construction sites are filled with many hazards. In fact, according to the Occupational Safety & Health Administration (OSHA), “About 20% (1,061) of worker fatalities in private industry in calendar year 2019 were in construction – accounting for one in five worker deaths for the year.” 

Fortunately, you can take steps to minimize risks, and the first step is to identify potential hazards. 

10 common construction site hazards and tips to reduce their impact on your business: 

1. Falls from heights – “In 2019, there were 401 fall fatalities out of 1,102 total fatalities in construction,” according to the Centers for Disease Control and Prevention (CDC). “Falls are a hazard found in many work settings, but construction has the most fatal falls out of all industries and represents 51% of all falls nationally.” Some causes of falls include unsecured scaffolding or ladders and a lack of guardrails or safety nets.
   
   
2. Being struck by moving objects - Construction sites are filled with many moving objects – vehicles, equipment, materials, etc. Being struck by an object is one of OSHA’s Fatal Four, accounting for approximately 10% of all construction worker deaths. Poor lighting, too little space to maneuver, and working too closely can cause injuries from moving objects.
   
   
3. Slips and trips – According to the CDC, “27% of the 888,220 nonfatal work injuries resulting in days away from work in 2019 were related to slips, trips, and falls.” Slips and trips can be caused by wet and slippery surfaces, uneven surfaces, etc. Most are easily prevented.
   
   
4. Noise – Loud noise can cause a significant distraction and permanent hearing loss.
   
   
5. Vibrations – Using tools such as drills, jackhammers, and chain saws can cause Hand-arm vibration syndrome (HAVS). “About 2 million U.S. workers are exposed to hand-arm vibration, and as many as half will develop HAVS, one expert says,” according to Safety and Health Magazine.
   
   
6. Manually moving materials and equipment – Incorrectly lifting, moving, and handling materials or equipment can cause severe injuries, such as Musculoskeletal Disorder (MSDS).
   
   
7. Asbestos – While asbestos only becomes a problem when damaged, it causes an estimated 255,000 deaths annually, according to the National Library of Medicine.
   
   
8. Electricity – Electricity is an essential part of any construction worksite, but it can also cause severe injuries and even death. Electrical accidents can occur from contact with overhead or underground power cables, damaged tools or equipment, inadequate wiring, overloaded power boards, and improper insulation.
   
   
9. Airborne materials – Invisible and fine dust material caused by cutting concrete, woodworking, and more are prevalent at construction worksites, and prolonged exposure to it can lead to illnesses such as asthma, lung cancer, emphysema, etc.
   
   
10. Excavation/trench collapse – Collapses are all too common on construction sites. In 2020 alone, at least 21 workers died in trench collapses. The leading cause is inadequate cave-in protection.

 4 Tips to Minimize Risk

You can take steps to minimize the risk of injury caused by any of these hazards. Some are specific to the threat, such as providing adequate cave-in protection to avoid collapses or implementing a lockout tagout system to prevent electrical injuries. 

Below are four steps that can be taken to minimize the risk of many hazards:

1. Training – Safety training helps employees recognize and avoid potential hazards at the workplace.
2. Proper PPE – To create a safer work environment, appropriate personal protective equipment (PPE), such as hard hats, safety glasses, and gloves must be provided. In addition, employees need to be trained on the proper use of PPE.
3. Work Area management – Work area management includes keeping pathways clear of debris and hazards, providing safety nets or guard rails where needed, ensuring that equipment and tools are kept in a secure area after use, and ensuring spills are immediately cleaned up, etc.
4. Proper maintenance – Equipment that is regularly repaired and maintained in excellent condition helps avoid injuries.

Lower Your Contractors Insurance Premiums

Creating a safer worksite and working with the right insurance agent can lower contractors insurance premiums. The independent agents at American Insuring Group specialize in contractors insurance and check with multiple insurance companies to get you the right coverage at the lowest price.

So start saving today. Call us at (800) 947-1270 or (610) 775-3848, or connect with us online.

Contractors' Insurance helps protect your business from risk, and let's face it… as a contractor, you face many risks every day. An employee or client may fall and injure themselves on a job site. A piece of heavy equipment might be stolen. A hacker may steal your data. Any one of these things could put you out of business… IF you aren't prepared.

 Risk Management

The first step in preparing is called risk management. Risk management is identifying and evaluating the risks your business may face and determining procedures to minimize the impact of those risks. Effective risk management helps provide confidence, streamline operations, enhance safety, and protect your business. 

Here are four steps to developing a risk management plan for your construction company (Click here for more details):

1. Identify Risks
2. Prioritize Risks
3. Determine Responsive Strategies
4. Create a Risk Management Plan

 There are many ways you can and absolutely should minimize the risk of something happening. For example, you can create safer workplaces, provide proper training, and ensure PPE is used appropriately. But unfortunately, despite all of your best efforts, accidents happen, equipment gets stolen, and data breaches occur.

 According to the U.S. Bureau of Labor Statistics, in 2019, there were 1,102 fatal injuries in the construction industry (both private industry and government). Furthermore, "These deaths represented 20.7 percent of total workplace fatalities in the United States (5,333)." It is estimated that $300 million to $1 billion of construction equipment is stolen every year. 

Transfer Risk With Contractors' Insurance

In step three above – Determine Responsive Strategies – one strategy is to transfer risks to an insurance company. For example, if a piece of equipment is stolen, insurance will pay to replace that equipment in exchange for premiums and deductibles. This takes much of the financial risk off of our business.

 Types of Contractors Insurance

The best way to determine which types of Contractors Insurance is right for your business is to work with one of the agents at American Insuring Group who specialize in Contractors' Insurance. Here is a brief description of the types of insurance that may be recommended.

General Liability Insurance – If your business is sued, general liability insurance will pay legal fees, settlements, etc.

Workers Compensation Insurance – In most states, including Pennsylvania, most employers are required to provide Workers' Compensation Insurance - which covers medical costs and lost wages if an employee is injured on the job - for their employees.

Commercial Property Insurance - Property insurance helps protect against property loss or damage due to events such as fire, hail storms, civil disobedience, and vandalism.

Builders Risk Insurance - Builders Risk Insurance helps replace materials, tools, and lost, damaged, or stolen equipment.

Commercial Auto Insurance - Commercial Auto Insurance helps cover bodily injury or property damage claims if one of your company's vehicles is involved in an accident.

Inland Marine Insurance - Inland Marine Insurance helps cover damages that occur while a building is under construction.

Professional Liability Insurance ((Aka Errors and Omissions Insurance) - If your business is sued due to a mistake made in your company's professional service, Professional Liability helps cover legal costs.

Umbrella Insurance - Insurance liability policies include a limit (the maximum amount an insurer will pay if a claim is filed). Commercial Umbrella Insurance helps cover the difference if a claim exceeds a policy's limit.

Cyber Insurance - Cyber Insurance helps cover your business' liability for data breaches that involve sensitive information, such as credit card numbers, driver's license numbers, and health records

Pollution Liability Insurance - Pollution Liability Insurance protects your business if you're held liable for a pollution incident on a worksite.

Gap Insurance – Often overlooked, Gap Insurance helps cover the cost difference to pay off a lease balance when the vehicle's value is less than the leasing company's payoff in a total loss accident.

Business Income Coverage/ Business Interruption – If you are forced to shut down your business after experiencing covered property damage (such as fires, storms, etc.), Business Income coverage can help replace lost income.

 How Much Does Contractors Insurance Cost?

Regardless of the specific type of insurance, several factors can significantly impact those insurance costs. Those factors include the following:

• Claims History:
• Nature of Work and Risk:
• Liability Limit:
• Loss Type

Start Saving on Contractors Insurance Today!

t's easy to lower your premiums by working with one of the agents at American Insuring Group. Our agents specialize in Contractors' Insurance and – as independent agents – we compare the quality and cost of your coverage with multiple insurance companies to find the policy that's right for you!

Don't Delay - start saving today by calling us at (800) 947-1270 or (610) 775-3848, or connect with us online.

Contractors Insurance is designed to help protect your business from various risks, including the risk of liability. A contractor can be sued for a variety of reasons – breach of contract, defects, employee and customer relations, project delays, etc. – and no business is immune to these risks.

According to a Small Business Administration (SBA) survey on the impact of litigation on small businesses, 36-53% of small businesses (fewer than 50 employees) were involved in filed civil lawsuits, resulting in $3,000 to $150,000 in legal costs for actual litigation. The survey report also states, “The impact of litigation on businesses goes well beyond the purely financial impact of legal fees and damages. Most small business owners are invested personally in their businesses; litigation causes not just financial loss, but also substantial emotional hardship, and often changes the tone of the business.”

Taking steps to minimize liability risks is just good business. Here are nine tips:

1. 1. Identify Potential Risks – Contractors are surrounded by potential liability risks, and the first step to reducing those risks is to identify them. Take time to look at your overall business practices and potential hazards at each project.
      
      
   2. Avoid accidents, including the Fatal Four – Every employer is obligated to keep employees safe, which can be a challenge in an industry like construction where hazards loom around every corner. According to the Occupational Safety & Health Administration (OSHA), 5,333 workers died on the job in 2019, and about 20% of fatalities in private industry were in construction. OSHA identified four hazards responsible for 63.7% of construction worker deaths in 2016, known as the “fatal four.” All workplace safety risks should be addressed, and starting with the fatal four – falls, struck by an object, electrocutions, caught-in/between - is a great place to start.
      
      
   3. Understand Safety Laws – The Occupational Safety and Health Act of 1970 was created to help ensure safe and healthful working conditions for workers. The result is a set of standards that businesses are required to follow by law. For example, OSHA requires that fall protection be provided for any employee working at an elevation of six feet or more in the construction industry.
      
      
   4. Understand Labor Laws - Fair Labor Standards Act mandates are designed to protect workers in the U.S. All businesses are required to follow these mandates, which include the establishment of minimum wage, overtime pay, record keeping, and youth employment standards.
      
      
   5. Avoid Delays – Delays are often unavoidable in the construction industry, and they are one of the most common disputes between construction companies and clients. Even if there is nothing in your contract about penalties for delays, common law usually applies, which could force you to compensate your client for loss of rent, storage fees, moving costs, etc. Proper planning can help minimize the risk of delays.
      
      
   6. Provide Quality Work – Shoddy work not only damages your business reputation it can also result in a costly lawsuit. Avoid construction defects, including defects in the design, workmanship, and or materials used, by drafting well-crafted contracts, fulfilling the contract terms, performing and documenting periodic inspections, etc.
      
      
   7. Hire Subcontractors Wisely – When something goes wrong – someone is injured, there’s a crack in the foundation, etc. – the general contractor is often held responsible. Therefore, only hire subcontractors you trust and have a reputation for quality work. Draft a comprehensive contract and ensure they have appropriate insurance.
      
      
   8. Communicate – Good communication – with employees, subcontractors, and clients – is key to the success of any project. Employ communication techniques, such as choosing a suitable communication method, being an active listener, and keeping communication professional at all times.
      
      
   9. Consult a Specialist When Appropriate – If you or your employees don’t have the knowledge or experience to perform a specific task, hire someone who specializes in that task.
      
      
   10. Document – With each project, have a comprehensive contract AND thoroughly document any potential hazards, inspections, accident reports, etc.

How to Purchase the Right Insurance

Sometimes, despite your best efforts, you may find yourself on the wrong side of a lawsuit. Thankfully, the right insurance can help minimize the impact of any lawsuit.

The agents at American Insuring Group understand the unique risks contractors face, and – as independent agents – they compare the cost of your coverage with several companies to lower your premiums.

Give one of our contractor insurance specialists a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Can you imagine trying to complete any construction project without hand or power tools? No, neither can we. But we also can’t ignore the fact that both hand and power tools present many hazards that can cause injuries, and injuries mean higher Contractors Insurance costs. 

When you work with tools every day, it’s easy to become complacent. As you repeatedly use certain tools, you almost go into auto mode, which can be extremely dangerous. According to the Bureau of Labor Statistics, power tool injuries result in approximately 400,000 emergency room visits each year in the U.S. Staying alert is crucial to minimizing the risk of injury. 

10 Hand and Power Tool Safety Tips 

1. Use the Right Tool – You know the correct tools to use for each task (at least you should), but sometimes a different tool is just handier. For example, using the screwdriver in your tool belt when you know the right tool for the job is the chisel you left in your truck. Or using the wrong sized bits, blades, etc., just because you don’t have the right size on hand. Using the wrong tool can cause damage or injury.
2. Follow Manufacturers’ Instructions for Use – Don’t think you know how to use a tool better than the manufacturer. Manufacturers’ instructions are written to help you avoid damage to your tools and injury to you and your coworkers.
3. Regularly Inspect Tools – Always inspect hand and power tools before and after use and properly repair or replace anything that is damaged before using again. Here’s what to check:
   • The handle and body casings of the tool for cracks or other damage
   • Damaged switches or faulty trigger locks
   • Make sure auxiliary or double handles are securely installed
   • Inspect cords for defects, such as cracking, fraying, or other signs of wear
   • Inspect plugs for cracks or faulty prongs
4. Don’t Modify Tools – Don’t remove any safety guards or disable any safety devices on tools. Don’t paint tools because this can hide cracks and chips.
5. Handle Tools With Care – The more carefully you handle your tools, the longer they’ll last and the safer you and your coworkers will be. Don’t “toss” tools into boxes or at coworkers. Don’t use electrical cords to lift tools. When not in use, keep tools in a toolbox or your tool belt.
6. Unplug – Power tools should be unplugged when not in use, moving to a new location, replacing blades or bits, or making repairs.
7. Keep Workspace Clean – A cluttered space can lead to trips, falls, and injuries, especially when you’re handling power or sharp tools, so keep your workspace clear of clutter. Also, be careful with power cords and air lines. Don’t let them get tangled up, and watch for cords as you move about your workspace.
8. Make Space – Leave yourself enough room to safely operate hand and power tools without coming into contact with your coworkers or other objects.
9. Wear PPE – Personal Protective Equipment (PPE) – such as safety goggles, earplugs, gloves, face masks, and hardhats – help protect you from injuries. PPE should fit properly and be well maintained.
10. Get Training – Understanding how to correctly use (and not use) tools is the best way to avoid injuries. Every employee using hand or power tools should be trained on the proper use of those tools. They should also be trained on general safety procedures and the appropriate use of PPE.

How to Save on Contractors Insurance

Creating a safer worksite to eliminate injuries is the first step to saving money on Contractors Insurance. The next step is to work with one of American Insuring Group’s agents specializing in Contractors Insurance. Not only do they understand your unique insurance needs, but they will also check with multiple insurance companies to ensure you get the best rate on your insurance coverage. So give them a call at (800) 947-1270 or (610) 775-3848, or connect with them online.

As the temperature continues to rise, so do heat-related illnesses among construction workers. The first step to minimizing your risk of these illnesses (and lowering your Contractor Insurance costs) is to understand potential illnesses, how to avoid them, and how to treat them.

According to WebMD, "Heat exhaustion is strongly related to the heat index, which is a measurement of how hot you feel when the effects of relative humidity and air temperature are combined. A relative humidity of 60% or more hampers sweat evaporation, which hinders your body's ability to cool itself." A heat index of 90 degrees or more significantly increases the chance of a heat-related illness.

Certain factors can increase your risks of a heat-related illness, such as obesity, certain prescription medications, the use of illegal drugs, alcohol, and certain medical conditions, such as diabetes, kidney, and heart problems. Also, adults over 65 can be more susceptible to heat-related illnesses.

Here are four heat-related illnesses to look out for when you're working in hot and humid conditions – inside or out.

Heat Exhaustion

Heat exhaustion is the most common heat-related illness and can occur when a person is exposed to high temperatures for several days without adequate fluids.

There are two types of heat exhaustion – water depletion and salt depletion. Water depletion can cause excessive thirst, headache, weakness, and even a loss of consciousness. Salt depletion causes nausea, vomiting, dizziness, and muscle cramps. Additional symptoms can include confusion, dark urine, pale skin, rapid heartbeat, and profuse sweating.

If you or someone you're working with in hot and/or humid conditions experience these symptoms, the first step is to cool them down.

• Get them out of the heat – preferably into an air-conditioned room
• Remove tight or unnecessary clothing,
• Take a cool shower, bath, or sponge bath
• Drink plenty of fluids (including sports drinks, which replace salt)
• Remove tight or unnecessary clothing,

If these measures don't make you feel better within fifteen minutes, seek medical help. Without proper intervention, heat exhaustion can lead to heatstroke – a more serious heat-related illness that can cause damage to vital organs or even death.

Heat Stroke

Heatstroke is the most severe heat-related illness and, unlike heat exhaustion, requires immediate medical attention. According to the Centers for Disease Control and Prevention (CDC), "[Heat stroke] occurs when the body becomes unable to control its temperature: the body's temperature rises rapidly, the sweating mechanism fails, and the body is unable to cool down. Body temperature may rise to 106°F or higher within 10 to 15 minutes."

A person suffering from heatstroke will experience many of the same symptoms as heat exhaustion – headache, dizziness, nausea, etc. But a person with a heat stroke will stop sweating and have a high body temperature. As a result, their skin will be red, hot, and DRY rather than cold, pale, and clammy skin like someone with heat exhaustion.

If you see or feel any of these symptoms, immediately call for medical assistance, get out of the heat, and use any methods to cool down quickly (i.e., spray with cool water or immerse in a tub of cool water). Monitor the body temperature until it is below 103°F. Do not give fluids to someone with heatstroke.

Heat Cramps

When your body lacks both water and salt, your muscles can spasm and cause cramps, typically in the arms, legs, and abdomen. If you experience heat cramps, get out of the heat, drink cool water or electrolyte-replenishing drink, and apply a cool, wet compress to cramping areas. Seek medical assistance if the cramps don't go away within an hour of treatment.

Heat Rash

Heat Rash is the least serious heat-related illness, but it can be uncomfortable. It happens when sweat can't evaporate from the surface of your skin, which can happen to construction workers working long hours in hot conditions. With a heat rash, you'll see small itchy red bumps or blisters – typically on your chest, neck, groin area, and inside your elbow. You can help alleviate the symptoms by getting out of the heat and hydrating. A cool shower and the application of talcum powder can help eliminate the rash.

Here's How to Lower Your Contractor Insurance Costs

American Insuring Group wants to help lower your Contractor Insurance costs by helping you keep you and your employees safe. AND, as independent agents, we compare multiple competing insurance companies to ensure that you pay the lowest insurance premiums while providing you with great coverage.

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

The construction industry is filled with risks, but understanding those risks and how to mitigate them can save you a ton of money on your Contractors Insurance costs. Here are three top risks every construction company should be aware of, steps to minimize those risks, and insurance to protect your business when something does happen. 

Risk: Injuries

Job site injuries are all-too-common. According to BigRentz, construction injury rates are – on average - 71% higher than injury rates across all industries and every year. The total cost of construction injuries in the U.S. is more than $11.5 billion per year, and in 2019, 130,000 construction workers missed work due to injuries. 

Employees aren’t the only ones who can be injured on a job site. Clients, vendors, etc., who visit your job site are also susceptible to injuries and may not be familiar with your safety protocols. 

Minimize the Risk of Injuries

The most effective way to minimize the risk of injuries is with a safety program. According to OSHA, construction companies can save $4 to $6 for every $1 invested in a safety program. However, according to National Funding, construction companies spend about 3.6% of their budgets on injuries and only 2.5% on safety training. 

OSHA suggests the following core elements of a Safety and Health Program:

• Management Leadership
• Worker Participation
• Hazard Identification and Assessment
• Hazard Prevention and Control
• Education and Training
• Program Evaluation and Improvement
• Communication and Coordination for Host Employers, Contractors, and Staffing Agencies 

Insurance Protection for Injuries

Workers’ Compensation (WC) Insurance – WC -mandatory in most states - is designed to cover medical expenses and lost wages when an employee is injured on the job. It also helps protect the employer against accident-related lawsuits. 

Business Liability Insurance – Clients, vendors, etc., who are injured on your job site are not covered under your WC policy. Business Liability Insurance typically protects your company if someone other than an employee is injured on a job site. 

Risk: Equipment Damage and Theft

Contractors rely on their tools and equipment to get the job done, and damaged or stolen equipment can quickly put a project at risk. Every year, as much as $1 billion is lost in the U.S. due to stolen construction equipment and tools. According to the NCIB, less than 20% of it is ever recovered. 

But the cost of stolen or damaged equipment goes well beyond replacement costs. IT also costs time spend filling out police reports and insurance forms. And whether the equipment is stolen or damaged, contractors need to find alternative equipment or make repairs to finish the job. 

Minimize the Risk of Equipment Damage and Theft

The risk of damage can be minimized with regular maintenance and training to ensure the equipment is being operated properly. 

The risk of Theft can be minimized with a few steps:

• Assess risks on each job site and develop a theft prevention policy.
• Secure your job site with fencing, security cameras, etc.
• Secure your equipment by locking it up and consider adding security measures such as alarms, fuel and equipment cut-off switches, and locks that immobilize controls. 

Insurance Protection for Equipment Damage and Theft

Commercial Property Insurance - Most Commercial Property Insurance policies cover tools and equipment that is stolen or damaged. However, it does not usually cover equipment that is in transit or stored at a job site. 

Builders Risk Insurance – Builders Risk Insurance is designed to protect equipment, structures, and materials in transit or at a job site. 

Risk: Litigation

We live in a litigious society, and anyone who works on a project can be held liable for any number of things. For example, you can be held responsible for property damage and projects that are not up to code or have other defects, such as cracks in the foundation, faulty drainage, or heating or electrical issues – even if it isn’t your fault. 

Minimize the Risk of Litigation

Litigation can cost a lot of time and money in legal fees and potential judgments against you. Fortunately, there are steps you can take to minimize the risk of litigation:

• Pay attention to the contract and fulfill the terms of the contract
• Document daily reports for defects
• Set realistic schedules
• Keep communication formal and reasonable
• Consult a specialist when appropriate 

Insurance Protection for Litigation

General Liability Insurance - This type of policy helps cover risks such as injuries of non-employees, customer property damage, libel, and slander. 

Professional Liability Insurance – This type of insurance helps cover lawsuits that result from a failure to deliver on promised services, negligence in providing services, and errors and oversights. 

The Best Way to Protect Your Construction Company

Minimizing risk should always be a top priority, but when all of your best-laid-plans fail, the right insurance helps protect your company from those risks. The independent agents at American Insuring Group will check with multiple insurance companies to ensure that you pay the lowest price on your insurance coverage. Give one of our experienced agents a call at (800) 947-1270 or (610) 775-3848 or connect with us online.