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Creating a safer worksite is every employer's responsibility and one of the best ways to save on Contractor Insurance. At a minimum, you should follow all Occupational Safety and Health Administration (OSHA) safety standards to avoid penalties and minimize the risk of injury. However, construction worksites are hazardous by nature, and injuries are always possible.

One of OSHA's safety standards is medical and first aid to help ensure that injured employees receive the best medical care as quickly as possible. "First aid refers to medical attention that is usually administered immediately after the injury occurs and at the location where it occurred. It often consists of a one-time, short-term treatment and requires little technology or training to administer," OSHA states. "First aid can include cleaning minor cuts, scrapes, or scratches; treating a minor burn; applying bandages and dressings; the use of non-prescription medicine; draining blisters; removing debris from the eyes; massage; and drinking fluids to relieve heat stress."

First Aid Assessment

Every job site is different; therefore, every site should be assessed to ensure proper first aid is available. First, identify and mitigate potential hazards. At the same time, identify the types of injuries possible and the first aid that may be required for those injuries. Develop your first aid program based on that assessment and OSHA's standards and regulations. Continue to reassess throughout the project as job sites, conditions, hazards, and first aid needs can change.

First Aid Training

OSHA states. "In the absence of an infirmary, clinic, hospital, or physician that is reasonably accessible in terms of time and distance to the worksite, which is available for the treatment of injured employees, a person who has a valid certificate in first-aid training from the U.S. Bureau of Mines, the American Red Cross, or equivalent training that can be verified by documentary evidence, shall be available at the worksite to render first aid."

But what is considered "reasonably accessible in terms of time and distance to worksite"? "Medical literature establishes that, for serious injuries such as those involving stopped breathing, cardiac arrest, or uncontrolled bleeding, first aid treatment must be provided within the first few minutes to avoid permanent medical impairment or death," OSHA states. "Accordingly, in workplaces where serious accidents such as those involving falls, suffocation, electrocution, or amputation are possible, emergency medical services must be available within 3-4 minutes…"

One way to ensure that you follow OSHA's standards and provide prompt medical attention for injured employees is to have at least one employee trained in first aid on each worksite (regardless of the location of the closest medical facility). That training should include basic first aid, CPR, and the use of an automated external defibrillator (AED). Additional training may be required depending on your assessment of potential injuries on the worksite. And don't forget to have those individuals recertified as needed.

In addition to at least one worker trained in first aid, all workers should understand their role in worksite first aid. They should understand the hazards and potential injuries. They should also know the protocol if someone is injured and requires first aid, including who to contact, where to find that person, how to explain their location, and where first aid kits and emergency equipment are located. And finally, they should know not to administer first aid themselves unless they are trained because they could cause more harm than good.

First Aid Kits

What good is someone trained in first aid if they don't have the tools and supplies they need to treat an injured worker? One or more first aid kits should be readily available on every worksite. The contents of that first aid kit should be based on the first aid assessment and the worksite size. OSHA's recommendation for "the minimally acceptable number and type of first-aid supplies for first-aid kits" for a small worksite of two or three workers includes the following:

• Gauze pads (at least 4 x 4 inches).
• Two large gauze pads (at least 8 x 10 inches).
• Box adhesive bandages (band-aids).
• One package gauze roller bandage at least 2 inches wide.
• Two triangular bandages.
• Wound cleaning agent such as sealed moistened towelettes.
• Scissors.
• At least one blanket.
• Tweezers.
• Adhesive tape.
• Latex gloves.
• Resuscitation equipment such as a resuscitation bag, airway, or pocket mask.
• Two elastic wraps.
• Splint.
• Directions for requesting emergency assistance.

Lower Your Contractor Insurance Bill the Easy Way

Keeping workers as safe as possible and ensuring proper medical treatment is available is a smart business move.

So is working with the experienced independent agents at American Insuring Group. We will perform an in-depth review of your business to ensure you have the right contractor or construction insurance and compare the cost of that insurance among many competing carriers to ensure you get the best price for the right coverage!

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

The right Contractor Insurance can help protect you, your employees, and your business. One serious workplace injury, lawsuit, or cyber-attack can put you out of business if you don't have proper insurance.

But how do you know what is the "proper" insurance for your needs? Understand common Contractor Insurance myths and work with one of the experienced independent insurance agents at American Insuring Group, who can walk you through the process and answer all your insurance questions.

7 Common Contractor Insurance Myths

Myth 1: A General Liability policy or umbrella policy will cover me.

FACT: General Liability protects your business premises from hazards, such as someone falling and injuring themselves in your office; however, it doesn't cover an employee who is injured on the job.

And Commercial Umbrella Insurance does not provide primary liability coverage. It offers additional coverage on liability claims on your existing insurance policies if a claim exceeds your policy's limit.

Myth 2: It's just me and another guy who helps out a couple of hours a week, so I do not need to carry Workers' Compensation Insurance.

FACT: The PA Department of Labor & Industry states, "Workers' compensation coverage is mandatory for most employers under Pennsylvania law. Employers who do not have workers' compensation coverage may be subject to lawsuits by employees and to criminal prosecution by the commonwealth." This includes both full and part-time employees, even if they are family members. There are very few exceptions.

Truthfully, even if you have no employees, Workers' Compensation Insurance is a good investment. How long do you think you and your family could survive without your income if you're injured on the job? Workers' Compensation pays for medical expenses and part of your lost wages if you are injured on the job. 

Myth 3: I don't need commercial auto insurance.

FACT: This is true if neither you nor your employees ever use a vehicle for business. However, your personal auto insurance will probably not cover injuries or damage if a vehicle (owned by the company, you, or someone else) is used for business purposes.

Myth 4: Only large construction companies get sued.

FACT: One poll found that 43% of small-business owners have been threatened with or involved in a civil lawsuit, and the cost of litigation ranges from $3,000 to $150,000, according to SCORE. "The financial hits of litigation can be far more damaging to small businesses than to large ones, which often staff in-house legal counsel and devote a portion of their budget to legal defense," SCORE advises. Could your business survive a $100,000 lawsuit if you needed to pay it out of pocket? The right Contractor Insurance helps pay for legal costs and judgments against your business.

Myth 5: As a small construction company, I'm safe from cyber-attacks.

FACT: Forbes reports that 43% of cyber-attacks target small businesses. "If you're still in denial about the chances of your small business becoming a victim, 61% of all SMBs [small to medium-sized businesses] have reported at least one cyber-attack during the previous year," Forbes states. "Despite the staggering numbers, 91% of small businesses haven't purchased cyber liability insurance. This truly reflects how unaware and unprepared small business owners are to deal with security breaches." 

Myth 6: Contractor Insurance is too expensive.

FACT: The right insurance policy is affordable, protects your business, and provides peace of mind. Without insurance, one significant accident or lawsuit could put your construction company out of business, which makes insurance a smart investment. 

Myth 7: I'm better off buying Contractor Insurance directly with an insurance company rather than an independent agent.

FACT: You will pay the same insurance premiums whether you buy directly from the insurance company or through an independent agent. The difference is that an independent agent will check the cost of your insurance premiums with several companies to ensure you get the best deal. Furthermore, agents specializing in Contractor Insurance can answer your questions, help ensure you have the proper coverage, and be there for you if you have any issues.

How to Find an Independent Agent Who Specializes in Contractor Insurance

The independent insurance agents at American Insuring Group specialize in Contractor Insurance. We can ensure you have the right insurance to protect your business at the lowest cost. We compare rates among competing insurance companies to save you money!

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

As a general contractor, it may feel as if you’re a Jack of all trades, but sometimes you need to call in an expert (or a subcontractor) – an electrician, plumber, carpenter, etc. – on a project. And sometimes, you are the expert hired as a subcontractor.

Whether you are the general contractor or the subcontractor, your business success depends on your understanding of your legal liability and the right Contractor Insurance to protect you from that liability if something goes wrong. Furthermore, having the right liability insurance helps build trust with potential clients and can result in bigger contracts.

General Contractor vs. Subcontractor

Sometimes the line between a contractor and a subcontractor is a little fuzzy. Generally, a contractor is hired by and works for the client on a project. However, a contractor is not an employee of the client. They work for them on a contractual basis, which means the contractor is responsible for fulfilling the contract and is liable for the entire project, even if the problem occurs with something a subcontractor did.

Subcontractors are hired by general contractors to perform a specific task or service. A subcontractor reports to and is liable to the general contractor. If a problem occurs with something a subcontractor did, the client may sue the contractor, who may, in turn, sue the subcontractor.

Most Common Contractor Liability Claims

The best defense against liability claims is first understanding your biggest risks and then either transferring those risks or ensuring those risks are covered by the right insurance. The following are the two most common types of liability claims contractors face:

1. Construction Defects – Construction defects include poor workmanship, improper or defective material, or a failure to follow construction codes. Examples of common construction defects include structural integrity, water intrusion, mechanical problems, electrical issues, etc.
   
   
2. Construction Delays – Delays are frustrating and costly and can happen for many reasons – weather, defective plans, labor shortages, equipment failures, etc. Some delays you have some control over, and others you do not. Either way, clients can sue if there are significant delays in the project.

Contractor Insurance

There are several types of contractor insurance that can protect both contractors and subcontractors. Depending on the scope of the work you do, you probably don’t need all of them, but it’s important to understand what is available to you.

General Liability Insurance – CGL is relevant to any business and helps protect your business from financial loss that results in property damage, bodily injury, libel, slander, lawsuits, and settlements or judgments.

Workers Compensation Insurance – Workers' Compensation (WC) Insurance is mandated by Pennsylvania (and most other states) for all employers. WC was designed to protect employees injured on the job by providing lost wages, medical expenses, disability expenses, and funeral costs. As a no-fault benefit, WC also helps protect your business from direct lawsuits by employees injured on the job. Failure to comply can lead to misdemeanor or felony charges and fines.

Commercial Property Insurance - Commercial Property Insurance helps repair or replace your physical assets, such as the building, furniture, computers, inventory, etc., if they are damaged by fire, hail, lightning, windstorms, vandalism, and explosions.  

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.

Commercial Auto Insurance - If you use a vehicle to conduct business, such as transporting materials, equipment, or employees, you should have commercial automobile insurance to help protect you in the event of an accident that causes bodily injury, loss of life, or property damage. 

Professional Liability Insurance - Professional Liability Insurance goes by many names, such as Errors and Omissions and E & O insurance. Professional Liability Insurance protects your business if you face a lawsuit claiming you made a mistake in your professional services - whether or not you actually made a mistake.

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 a 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.

Get the Right Contractor Insurance!

The right insurance helps protect both contractors and subcontractors from the liabilities they face. The experienced independent agents at American Insuring Group will help you get the right insurance to protect your business at the lowest cost.

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

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.