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8 Tips to Lower Contractors Insurance Costs

Posted by David Ross on Sat, Aug 29, 2020

lower_contractors_insuranceContractors need to carry certain types of Contractors Insurance to protect themselves, their business, and their employees, and many contracts require specific insurance coverages.

But that doesn’t mean you have to pay higher premiums than necessary. There are ways to lower your premium costs without affecting your coverage. Here are eight tips to help you lower your insurance premiums.

Increase Deductibles

If you have financial reserves that would allow you to assume some additional risk, you can increase your deductibles to reduce your premiums. If the difference in the premium is enough to cover the deductibles on one or two claims, it probably makes sense to make the change - IF you have money available to pay the higher deductible in the event of a claim.

Review Your Policy

Over time, things change in your business. You may need to hire an additional employee or let one go. You may purchase a new vehicle or sell an older piece of equipment. Your current insurance should reflect your current circumstances.

Let your insurance know about these changes and review your policy at least once a year to make sure that you have proper coverage AND that you are not paying more than you need to.

Bundle

You probably need more than one type of insurance. For example, Commercial Liability Insurance helps protect you if a third-party sues you (and is a requirement in most contracts); however, Workers’ Compensation protects your employees and your business if an employee is injured on the job (and is required by law). Many insurance carriers will offer a discount if you purchase or combine more than one policy with them.

Lower Your Commercial Auto Insurance

Employees with good driving records who drive your vehicles will help lower your costs. On the other hand, employees with bad driving records will increase your premiums. Before hiring anyone who will be driving any of your commercial vehicles, check their driving record.

Also, consider purchasing less expensive vehicles to lower your Auto Insurance premiums. Sure, a sleek new truck with all the bells and whistles will be fun to drive, but is it worth the additional expense of higher insurance premiums? Maybe it is, but it’s important to factor insurance costs into your buying decisions.

Focus on Safety

Safety should be a priority at any construction site. It’s just good business sense to keep your employees, customers, vendors, etc. safe. Plus, a safer worksite minimizes the number of employees injured on the job, lowering your Workers’ Compensation Insurance. It should also minimize the number of third-party injuries, lowering your Commercial Liability Insurance. Use the safety information, tools, and resources provided by OSHA to help ensure a safer worksite.

Do Good Work

This is another one that makes good business sense but will also help you avoid lawsuits and thereby lower your Contractors Insurance costs.

Pay Attention to the Workers’ Compensation Formula

Your Workers’ Compensation rates are determined by a formula that looks at several factors. Ensure the information being used in that calculation is accurate and that everything is calculated correctly.  

One factor that affects your rate is your employees’ classification codes, which are based on the likelihood of that employee being injured on the job. Make sure that the correct classification codes are given to every employee. For example, an office worker who is less likely to be injured on the job should not have the same classification code as your electrician. If they do, you may be paying more than you need.

Another factor is your business’s loss history, which is reflected in the experience modifier. A modifier of one is average. A lower number will reflect a better than average loss history, and a higher number will reflect a loss history that is worse than the average. A safer worksite should result in fewer claims, thereby lowering your experience modifier and your WC costs.

Go with an Independent Insurance Agent!

An independent agent – like those at American Insuring Group – will compare insurance rates amng several different competing insurance companies to help you get the lowest rate possible. Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online to discover how we can help you save more on your Contractors Insurance costs!

Tags: Construction Insurance, Contractor Insurance, Small Business Insurance Reading PA, workers comp costs, Contractor Safety Management

5 Outdoor Dangers for Construction Workers and Tips to Avoid Them

Posted by David Ross on Sat, Jul 25, 2020

Lower your risks while working outside and save on contractors insurance in Philadelphia, Lancaster, Allentown, Pittsburgh, Erie, PA and beyond!The construction industry is notorious for being filled with potential hazards that cost construction companies billions of dollars in higher Contractor Insurance premiums.  Common hazards include falling from heights, electric shock, scaffolding collapse, etc., but have you ever considered the hazards of working outside.

On a beautiful spring or fall day, working outside seems like a real blessing – definitely better than being stuck inside an office or manufacturing facility. But working outside does pose additional health risks that can cause everything from mild discomfort to severe injuries and even death.

Understanding these dangers and how to prevent them, are essential if you want to keep your workers safe and your expenses down. Here is a list of outdoor hazards that you should be aware of and train your employees to avoid.

Lyme Disease

Hazard:

According to the Centers for Disease Control and Prevention, Pennsylvania has had the highest number of Lyme disease cases in the U.S. since 2011.

"Untreated, Lyme disease can spread to other parts of your body for several months to years after infection, causing arthritis and nervous system problems,” according to the Mayo Clinic.  Plus, ticks can transmit other illnesses, such as babesiosis and Colorado tick fever.

Prevention:

Ticks are most active between April and September. During those months, try to avoid wooded and bushy areas, use repellents that contain 20 to 30% DEET, and use products that contain permethrin on clothing.

Sun Exposure

Hazard:

One of the best things about regularly working outside is a killer tan. Unfortunately, the same thing that creates that tan can also cause skin cancer.

According to the Skin Cancer Foundation, “about 86 percent of melanomas can be attributed to exposure to ultraviolet (UV) radiation from the sun,” and “about 90 percent of nonmelanoma skin cancers are associated with exposure to ultraviolet (UV) radiation from the sun.”

Prevention:

Use a broad-spectrum sunscreen with at least a 15 SPF before going outside, even on cloudy or cool days, and reapply regularly, especially if you are sweating. Check the SPF’s expiration date. Wear clothing that covers as much skin as possible as it acts as a barrier against UV rays.

Insect Stings and Bites

Hazard: 

In Pennsylvania, people working outside need to watch out for stings from insects such as bees, wasps, and hornets, and bites from both venomous and non-venomous spiders. While most insect stings and bites only cause mild discomfort, some can result in a severe allergic reaction that requires immediate medical attention and can even cause death.

Prevention:

Try to avoid attracting insects by staying away from strong-smelling products, such as colognes and some soaps, shampoos, and deodorants. Wear clothing that covers as much of the body as possible. Try to ignore and not swat at a single flying insect, but if attacked by several stinging insects, run away from them.

Any workers who know they are prone to severe allergic reactions from insect bites or stings should wear medical ID jewelry and carry an epinephrine pen.

Poisonous Plants

Hazard:

If you come in contact with plants, such as poison ivy, poison oak, and poison sumac, the urushiol oil from those plants can cause an itchy rash, bumps, or blisters. For some, the rash can be relatively minor, but for others, it can cause severe swelling or trouble breathing or swallowing.

Prevention:

Wear clothing that covers as much of the body as possible, learn to identify poisonous plants, clean tools and clothing that may have been exposed to the oil, and immediately wash skin exposed to the oil with soap and water.

Extreme Temperatures

Hazard:

Both heat and cold stress can cause health issues that range from slight discomfort to death. Heat stress disorders include heat exhaustion, heatstroke, heat cramps, heat rash, and fainting.

Several factors contribute to the dangers of cold stress: temperature, wind, dampness, and cold water. Cold stress can occur in mild temperatures that are coupled with rain and/or wind. Cold-related illnesses include hypothermia, frostbite, and trench foot.

Prevention:

Reduce heat exposure by ventilating areas of high heat and use cooling fans and personal cooling devices (cooling vests, heat reflective clothing, etc.). Wear loose-fitting, lightweight clothing, drink plenty of liquids, and try to schedule heavy work during cooler parts of the day.

When working in frigid climates, prevent cold stress by wearing at least three layers of clothing. Wear a hat, insulated boots, and insulated gloves.

Lower Contractors Insurance Costs the Easy Way!

Preventing these outdoor dangers can help lower your Contractors Insurance costs. Another way to lower your insurance premiums is to work with one of the independent agents at the American Insuring Group.

We will compare costs and coverages among many insurance providers, and find the best combination of protection and price to meet your needs.  So call today at (800) 947-1270 or (610) 775-3848 or connect with us online to start saving!

Tags: Construction Insurance, Contractor Insurance, Commercial Insurance Harrisburg PA, Contractor Safety Management

Marijuana and Contractors Insurance

Posted by David Ross on Sat, Jun 20, 2020

Marijuana and the impact on contractors insuranceMore than four years after Governor Tom Wolf signed the Pennsylvania Medical Marijuana Act into law, the implications of the law on construction site safety and Contractors Insurance is still unclear. Pennsylvania was the 24th state to legalize medical marijuana, and today, nearly thirty states have similar laws.

The challenge for construction companies is balancing safety with compliance with a variety of conflicting state and federal laws regarding the use of both recreational and medical marijuana.

According to the National Safety Council (NSC), “While medical marijuana-using employees have mounted legal challenges, state statutes usually side with employers who reject potential employees or reprimand workers that test positive for cannabis, even if they have a medical marijuana card. Some states protect employee rights and safeguard against disciplinary action for medical marijuana use, however. Marijuana is still illegal according to federal law, which classifies it as a Schedule I drug with no accepted medical use and a high potential for abuse. Federal law supersedes state law.”

NSC also states that the Americans with Disabilities Acts sides with employers, most states will not pay worker compensation benefits to an employee who is under the influence at the time of the accident, and most state health insurance programs won’t pay for medical marijuana.

Putting legal and ethical issues aside, the bottom line is that marijuana use can impact job safety, and in an industry already fraught with its share of hazards, safety should be a priority for any construction site. Workplace injuries not only increase Workers’ Compensation Insurance costs they also decrease employee productivity and morale.

Marijuana and Job-Site Safety

Marijuana contains tetrahydrocannabinol (THC), a psychoactive compound, which has shown to have adverse effects. It can change a person’s sensory perception, create short-term memory problems, and impair thinking. Physically, marijuana use has been shown to impair motor skills, cause a loss of balance and coordination, and impair depth perception. These effects can prove deadly to someone driving a forklift or working on a roof.

According to the National Institute on Drug Abuse, “employees who tested positive for marijuana on a pre-employment urine drug test had 55% more industrial accidents, 85% more injuries, and 75% greater absenteeism compared with those who tested negative for marijuana use.”

What Can Construction Companies Do?

While much of the Pennsylvania Medical Marijuana Act is unclear – or even conflicting - some sections support employers and workplace safety. For example, if an employee has more than ten nanograms of THC in their blood, they cannot operate or be in physical control of strong chemicals or high voltage electricity and that an employee who is “under the influence of medical marijuana” cannot perform duties in confined spaces or at heights.” It also states that an employer can prohibit an employee from “performing any task which the employer deems life-threatening, to either the employee or any of the employees of the employer.”

If you are working on a federal project, you have no choice but to maintain a drug-free job site, and the use of marijuana on the job should always be prohibited on any job site.

The NSC recommends that construction companies have a drug-testing program and a solid drug policy in place that include the following:

  • A definition of the terms “marijuana,” “cannabis,” or any other derivation
  • Proper management and supervisor training
  • Access to support for employees with drug addictions
  • Clearly defined use and possession parameters
  • Drug testing policies and procedures – Tests should be conducted uniformly for all employees to avoid liability for discrimination claims.
  • Education for employees on clinical issues relating to marijuana, such as how long it remains in the system, the effects it can have, including the potential impact on workplace safety.
  • Established rules for post-accident testing
  • Rules on how to handle employee convictions or arrests
  • A reminder that on-the-job impairment will not be tolerated, including medical marijuana

Include your drug policy in all recruiting and new-hire on-boarding materials. Review your drug policy with a lawyer and update it as laws change.

Here's How to Save on Contractors Insurance!

Creating a safe worksite is just one way to lower Contractors Insurance rates. Working with one of the American Insuring Group independent agents who specialize in Contractors Insurance will ensure that you get the right coverage at the best price. Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Construction Insurance, Contractor Insurance, workers comp, Contractor Safety Management, Safety Programs

Opioid Abuse is Increasing WC Insurance Costs in the Construction Industry

Posted by David Ross on Sat, May 30, 2020

Opioid abuse and increased WV insurance costsIn the US, opioids are costing businesses an estimated $42 billion every year due to absenteeism, increased healthcare expenses, lost productivity, and increased Workers’ Compensation Insurance costs. Opioid addiction is the country’s biggest health crisis, and research shows that more than 50% of individuals who die from an opioid overdose had at least one job-related injury.

The opioid crisis is hitting construction workers harder than most. This comes as no surprise since construction workers are more likely to be injured on the job than many other occupations, and 25.3% of those injured workers were prescribed opioids to treat the pain caused by those injuries.

The result is that 15% of construction workers have a substance use disorder, while the national average is nearly half that at 8.6%, according to the National Safety Council.

What are Opioids?

Opioids – a type of painkiller prescribed for short-term relief of acute pain and cancer patients – include Hydrocodone (Vicodin®), Oxycodone (OxyContin®), Oxymorphone (Opana®), Morphine, Codeine, and Fentanyl.

What are the Risks of Opioids?

Here are a few risks with Prescription Opioid use, according to the National Association of Home Builders:

  • Tolerance – People who take opioids quickly build up a tolerance to the drug and need to take a higher dosage to relieve the pain.
  • Dependence – Even when opioids are taken as directed, people quickly become dependent on opioids, and withdrawal is horrible.
  • Misuse – Some people build a tolerance and develop a dependence on opioids, which often causes them to take more than directed.
  • Overdose – Being prescribed opioids is the most significant risk factor for accidental overdose and death.
  • Addition – Individuals who have been prescribed opioids for long-term or chronic pain are 25% more likely to become addicted.
  • Using it as a diversion – In 2017, at least 14% of high school students took prescription opioids “just for fun.
  • Drug interactions – Mixing any prescription drug with alcohol or other drugs can be dangerous, and opioid is no different.

And it isn’t just the people addicted to opioids that are affected. The National Safety Council reports, “Substance use disorders affected 20.8 million Americans, almost 8% of the adult & adolescent population, when you include family members of those affected, nearly 1/3 of the US population is impacted by addiction. While 75% of these people are part of the workforce, most employers are unaware of the hidden costs associated with these problems.”

According to a Center for Construction Research and Training report released earlier this year, “65 unintentional overdose fatalities occurred on the job site in the construction industry in 2018 – a more than nine-fold increase from the seven recorded in 2011. The figure also represents a 35.4% climb from the 48 overdose deaths recorded in 2017.”

Save on Workers’ Compensation Insurance

The National Safety Council reports, “Companies and organizations of all sizes have an important role in promoting the health and safety of employees and managing risks in the workplace.” That includes opioid abuse. Create a safer workplace with a strong safety program that includes opioid education, and you create a workplace where employees thrive, and you enjoy lower Workers’ Compensation Insurance costs.

Want to save more on insurance costs? Give American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Workers Compensation Insurance, Contractor Insurance, WC Insurance, Opioid Epidemic

3 Safety Tips to Lower Contractors Insurance Costs

Posted by David Ross on Sat, Apr 25, 2020

Save_contractors_insurance-1If you want to lower Contractors Insurance costs – from Commercial General Liability to Workers’ Comp Insurance – create a safer worksite. Safety should be your number one priority simply because it’s the right thing to do.

But if you need more incentive or ammunition to pitch a safety program to management, know that safety will also improve your bottom line. A safer work environment improves morale, keeps projects on schedule and under budget, and helps lower insurance costs.

Here are three tips for creating a safer worksite.

Assess the Job Site

Before you begin any new job, take time to assess the job site, identify potential hazards, and determine preventative measures to minimize injury.  Start with OSHA’s Fatal Four – dangers that are responsible for more than half of the construction worker’s deaths.  The fatal four are falls, object strikes, electrocutions, and caught-in/between. Look at a job site and determine how you can minimize those hazards.

Determine areas that should be blocked off while specific tasks are being performed. Install guardrails, catch platforms, nets, and other safety measures to avoid falls. Ensure that scaffolding is constructed correctly, and make sure you have appropriate PPE available for workers, such as safety harnesses, lifelines, and lanyards.

Consider Scheduling

Did you know that a study by the Associated General Contractors of America found that most construction site fatalities occur from 10 am to 3 pm, peaking at noon and that nearly 75% of deaths happened Monday through Thursday? Use that information and schedule safety meetings around noon early in the week. Also, ensure that you have strong safety measures in place for lunch breaks. 

Another safety issue common to the construction industry is over-scheduling workers to meet deadlines. If workers are too physically or mentally exhausted, the best safety practices in the world won’t eliminate injuries. According to OSHA, working 12 hours per day is associated with a 37% increased risk of injury.

A 2005 study of medical residents found that every extended shift scheduled in a month increased the risk of a motor vehicle crash on their commute home by 16.2 %. Motor vehicle accidents are the leading cause of work-related deaths in the U.S.

Fatigue was cited as a contributing factor in several major workplace disasters, including the nuclear accidents at Chernobyl and Three Mile Island, the Challenger space shuttle explosion, and BP’s Deepwater Horizon oil refinery explosion.

Don’t risk your workers’ health and safety or the health of your company by over-working your employees.  Ensure that all your employees and subcontractors take regular breaks and don’t work too many hours.

Develop a Culture of Safety

If you want your workers to follow your company’s safety procedures, you need to develop a culture of safety from top management on down. Your company should have a safety program that includes regular safety training, meetings, and updates (at least once a week).

Those meetings can include brief onsite recaps to formal OSHA training to fun team-building activities.  And your safety program should be practiced and enforced by everyone. Make safety a priority at your company. Don’t just give it lip service or focus on complying with the minimum OSHA standards.

Follow these three tips to let your employees know that their safety is your number one priority, and your business will experience better employee morale, lower employee turnover, lower insurance rates, and so much more.

Want to Save More on Contractor Insurance?

The American Insuring Group has experienced agents who specialize in Contractors Insurance. Plus, as independent agents, we compare the cost of your insurance with several companies to ensure that you get the best rate on the right coverage.

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

Tags: Construction Insurance, Contractor Insurance, Contractor Safety Management, Safety Programs

7 Smart Ways to Save on Contractor Insurance

Posted by David Ross on Sun, Mar 22, 2020

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

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

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

Increase Deductibles

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

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

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

Pay Upfront

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

Combine Insurance Policies

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

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

Lower Commercial Auto Insurance

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

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

Identify and Minimize Your Risks

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

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

Create a Safer Worksite

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

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

Work with an Independent Insurance Agent

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

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

Tags: Contractor Insurance, workers comp, Commercial Insurance, Contractor Safety Management, Commercial Auto Insurance

7 Tips to Improve Roofer Safety and Lower Contractor Insurance

Posted by David Ross on Sun, Mar 08, 2020

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

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

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

Plan, Provide, and Train

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

Consider Weather Conditions

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

Use Ladders Properly

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

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

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

Provide Fall Protection

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

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

Provide Safe Scaffolding

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

Consider Electrical Safety

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

Train Employees on Hazardous Materials

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

 

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

A Trusted Choice Independent Insurance Agent in Berks County, and serving Philadelphia, Harrisburg, Allentown, Pittsburgh, PA and beyond.Another way to save on Contractor Insurance is to work with an independent agent – like those at American Insuring Group – who will compare the cost and quality of insurance coverage among several different competing insurance companies.

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

Tags: Construction Insurance, Construction Risk Insurance, Contractor Insurance, workers comp insurance, Contractor Safety Management

Will a BOP Lower Your Contractor or Restaurant Insurance Costs?

Posted by David Ross on Sun, Mar 01, 2020

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

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

Here’s what you need to know.

What Is a Business Owners Policy (BOP)?

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

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

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

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

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

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

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

Do I Qualify For a Business Owners Policy

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

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

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

Is a BOP Right For My Business?

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

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

What Doesn’t a BOP Cover?

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

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

 

How Else Can I Save on Contractor or Restaurant Insurance?

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

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

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

Tags: Restaurant Insurance, Contractor Insurance, Small Business Insurance, Commercial Insurance

What You Need About Saving on Contractor Insurance

Posted by David Ross on Sun, Feb 09, 2020

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

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

Who Needs Contractor Insurance?

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

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

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

What Type of Insurance do Contractors Need?

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

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

Commercial General Liability (CGL)

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

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

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

Commercial Automobile Insurance

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

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

Builder’s Risk Insurance

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

Commercial Property Insurance

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

Inland Marine Insurance

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

Workers’ Compensation (WC)

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

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

Professional Liability Insurance

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

 

👉 Contact Us to Save on Contractors Insurance!

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

  • You may lower costs by bundling liability coverages into a package called a Business Owner’s Policy (BOP).
  • You may lower costs by creating a safer work environment that results in fewer injuries and fewer claims.
  • You may lower costs by working with an independent agent – like those at American Insuring Group – who can compare the cost of your coverage with several companies to ensure you’re paying the lowest premiums for the coverage.

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

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

Tags: Workers Compensation Insurance, Construction Insurance, Contractor Insurance, Commercial Liability Insurance, Commercial Insurance

Top 3 Construction Business Risks and How to Minimize Them

Posted by David Ross on Sun, Jan 19, 2020

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

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

  1. Injuries

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

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

Minimize Risk of Injury

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

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

  1. Equipment Damage or Loss

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

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

Minimize Risk of Theft

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

Minimize Risk of Damage

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

  1. Faulty Work

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

Minimize the Risk of Faulty Work

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

Insurance: Your Safety Net

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

Commercial Property Insurance

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

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

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

License and Permit Bond

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

Protect Yourself with the Right Contractors' Insurance

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

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

Tags: Construction Insurance, Contractor Insurance, commercial property insurance, Contractor Safety Management, Builders Risk Insurance