You say you have good business insurance, and that you've taken the time to obtain the right workers compensation insurance protection for your employees and your business. Good for you!

But, have you taken all the proper precautions to protect your construction workers or other employees from asbestos exposure? Doing so is the right thing to do for their protection, and over time it could also lower your workers compensation insurance costs.

What is Asbestos?

Asbestos is a naturally occurring mineral-based material that is widely used in many building products because it is resistant to heat and corrosive chemicals and does not conduct electricity. Asbestos fibers are very fine and can remain suspended in the air for hours. Asbestos comes in all shapes, sizes, and colors, and it’s extremely difficult to see. 

Asbestos that is in good condition and undisturbed is safe, but scientists have confirmed that when asbestos materials start to rot or are disturbed by cutting, scraping, drilling, or sanding, toxic fibers are released into the air.  Once breathed in, these tiny fibers (1,200 times thinner than a human hair) can get trapped in the lungs and remain there for a long time.  As these fibers accumulate, they cause scarring and inflammation, which can affect breathing and cause significant health problems.

Asbestos has been classified as a carcinogen (cancer-causing substance).  Continued exposure to asbestos can cause mesothelioma (a cancer that affects the membranes lining the lungs and abdomen), asbestosis (scarring of the lungs, which causes a loss of lung function that often progresses to disability and death), lung cancer, pleural plaques, and cancers of the esophagus, stomach, colon, and rectum. 

Often, the symptoms don’t appear until many years after the first exposure (20-50 years is the average gap).  Even short-term exposure to a significant amount of asbestos can lead to breathing problems, coughing, and shortness of breath.  And, there is evidence that family members of workers heavily exposed to asbestos face an increased risk of developing mesothelioma, as a result of exposure to asbestos fibers brought into the home on the shoes, clothing, skin, and hair of workers. According to the World Health Organization, 43,000 people die annually from asbestos (10,000 Americans).

Banned in 55 Counties

Asbestos has been banned in 55 countries.  Its use is restricted in the U.S. (asbestos must account for less than 1 percent of the product.), but it has not been banned.  Two million metric tons of the substance are produced every year worldwide. Many U.S. companies have phased out most products that contain asbestos; however, asbestos building materials still exist at many jobsites – especially homes and commercial buildings built before the 1970’s.  In 1989, the U.S. Environmental Protection Agency (EPA) banned all new uses of asbestos; however, uses developed before 1989 are still allowed.  

Why Construction Workers are at Risk:

Everyone is exposed to asbestos at some time during their life.  Low levels of asbestos are present in the air, water, and soil.  However, most people don’t become ill from their exposure.  People who become ill from asbestos are usually those who are exposed to it on a regular basis. 

Throughout the twentieth century, asbestos was incorporated into thousands of construction products, including fire retardant coatings, concrete and cement, bricks, pipes, gaskets, insulations, drywall, flooring, roofing, joint compound, paints, and sealants. Asbestos is a serious risk for construction workers of any trade.  Demolition workers who unsafely dispose of asbestos experience some of the highest risks.  Roofers, electricians, drywall workers, painters, plumbers, and laborers all face regular exposures, but anyone working on an older structure should be cautious of asbestos.

According the National Institute for Occupational Safety and Health, nearly one-quarter of worker deaths caused by asbestosis between the years 1990-1999 were in the construction trades, by far the most dangerous industry in terms of asbestos exposure.

If your employees perform any of the following tasks, they are at risk of breathing asbestos fibers:

• Cut, drill, sand, or otherwise disturb textured wall/ceiling material or drywall that contains asbestos
• Collect asbestos samples for laboratory analysis
• Remove or repair pipe insulation that contains asbestos
• Strip electrical wiring that contains asbestos insulation
• Remove ceiling tiles that contain asbestos
• Drag cable or wiring through asbestos-containing vermiculite insulation or ceiling tiles, or through asbestos-cement conduit
• Remove vinyl floor tiles or linoleum that contains asbestos
• Demolish concrete block that contains asbestos-containing vermiculite insulation
• Remove asbestos-containing asphalt roofing materials

How Can You Protect Your Employees from Asbestos?

• Read and understand the U.S. Occupational Safety and Health Administration (OSHA) regulations covering asbestos exposure in general industry and construction www.osha.gov/SLTC/asbestos
• Train employees who will be working with and around asbestos, including
  • How to recognize asbestos-containing materials http://www.hse.gov.uk/asbestos/gallery.htm
  • Awareness of the health hazards of asbestos
  • Proper use of personal protective equipment
  • Proper handling, removal, and disposal of asbestos
  • Develop and implement an exposure control plan for asbestos work
  • Have qualified people conduct risk assessments for any asbestos-containing materials that might be disturbed
  • Ventilate workspaces
  • Monitor employees for asbestos exposure levels
  • Keep warning signs and instructions in areas where asbestos-related work is performed
  • Require protective clothing, such as overall, gloves, foot coverings, face shields, and goggles.
  • Use protective equipment , such as respirators
  • Supply shower facilities and other post-exposure precautions
  • Require medical examinations for workers who are exposed to high levels of asbestos

Having the Right Health Insurance and Worker's Comp Insurance Pays Off

If one of your employees still becomes ill from exposure to asbestos while working for you, the right insurance – both liability, health, and workers’ compensation insurance – will help ensure the best care with the least financial impact. 

We're Here to Help

To determine your business insurance needs, contact American Insuring Group at (800)947-1270 or (610)775-3848.  We're independent insurance agents who offer insurance from over 25 competing brands. We’ll make sure you have the right coverage for your business at the right price. Contact us today.

3 Construction Insurance Must-Haves

Whether you’re a subcontractor or a general contractor – whether you build small backyard sheds or giant commercial buildings – whether you’re a one-man remodeling business or a multi-million dollar construction company, there are three types of insurance you need to consider.  In other words, the size of your business and the size of the project make little difference.  If you want to protect your investment, your employees, and even your business, there are three types of commercial insurance to consider: Liability Insurance, Builders Risk Insurance, and Flood Insurance. 

Commercial Liability Insurance (A.k.a. Commercial General Business Liability Insurance)

Commercial Liability Insurance is a critical part of any business’s insurance portfolio and particularly pertinent in the construction industry where accidents and injuries are more common. Commercial Liability Insurance protects you and your company if someone gets hurt on your property or if you or an employee causes property damage or injury on a job site.  This insurance helps cover medical and legal defense costs and settlements if you are sued.  Extended litigation (including attorney fees and court costs) can quickly deplete your cash reserves - even if the claims are found to be unwarranted.  

The amount of liability insurance is proportionate to the cost of the project.  Generally, you should have coverage that is two to three times the amount of the construction project budget.  In addition, businesses with higher risk for damages, such as roofing contractors, may need higher coverage.

Before you begin to build, repair, or remodel any structure – even as a subcontractor - common business standards require that you provide evidence of liability insurance.  Adequate General Liability Insurance safeguards your business – even in today's litigious environment.

Builder’s Risk Insurance (A.k.a. Course of Construction Coverage)

Builder’s Risk Insurance (construction insurance) is property insurance that covers damage to a building during construction.  It may cover just the structure itself, or it can include materials, fixtures, and/or equipment being used in the construction or renovation of the building.  Lending and municipal authorities will often require this insurance, and it can apply to both new construction and remodeling projects.

Most Builder’s Risk Insurance policies cover damage caused by fire, wind, lightning, hail, theft, vandalism, and damages by aircraft and vehicles. Items that generally are not covered include damage due to earthquake, employee theft, water damage, and mechanical breakdown.  Damage resulting from faulty design, planning, workmanship, or materials is rarely covered, and it’s important to note that Builder’s Risk insurance doesn’t cover tools and equipment or the property of others (that’s why it’s important for sub-contractors to have their own insurance).

Flood Insurance

Flood insurance is typically covered by the National Flood Insurance Program and usually has a 30-day waiting period before entering its coverage period.  This is done so the insurance isn’t purchased only when a flood is expected. 

Flood insurance is required in high-risk areas and strongly recommended in moderate-to-low risk areas.  It normally covers damage caused by tidal waves, overflow of inland water, unusual accumulation of runoff water, and water exceeding normal levels. 

For more customized information about your construction insurance or contractor insurance needs, contact American Insuring Group at (800) 947-1270 or (610) 775-3848. We'll help get you the right coverage for your projects at the right price. That's because we're independent agents offering over 25 competing brands of insurance, so we're free to find you the best deal in quality insurance protection. Contact us today.

Every employer is responsible for insuring a safe working environment for his or her employees. If you’re in construction, workplace safety should move to the top of your priorities because more than 20% of the work-related fatalities in 2013 occurred in the construction industry. 

STEP #1: Identify Construction Safety Hazards

First, you need to identify potential hazards.  OSHA lists the following hazards for individuals in the construction industry:

1. Falls (from heights),
2. Trench collapse,
3. Scaffold collapse,
4. Electric shock and arc flash/arc blast,
5. Failure to use proper personal protective equipment, and
6. Repetitive motion injuries.

STEP #2: Address Construction Hazards

Next, you need to address those hazards.  OSHA has identified the following as some of the most frequently cited hazards:

1. Scaffolding – Approximately 2.3 million construction workers regularly use scaffolds, and it is estimated that 4,500 injuries and 50 fatalities related to the use of scaffolding occur each year.  To help avoid some of these injuries and fatalities, you need to ensure that scaffolding is erected by a competent person using stable supports on solid footing and that it is inspected regularly.  Scaffolding should be sound; located at least 10 feet from electric power lines; equipped with guardrails, midrails, and toeboards; and accessible by ladders or stairways.
    
2. Fall protection – Falls account for the greatest number of fatalities in the construction industry.  They’re caused by unstable work surfaces, failure to use fall protection equipment, and human errors.  Using guardrails, fall arrest systems, safety nets, covers and restraint systems, you can prevent many deaths and injuries caused by falls.
    
3. Ladders – there are approximately 24,882 injuries and 36 fatalities each year due to falls on stairways and ladders used in construction.  To avoid some of those falls, you need to use the right ladder for each task, inspect ladders regularly, ensure that ladders are long enough to safely reach the work area, and never over-load ladders. 
    
4. Head protection – You need to ensure that workers wear hard hats where needed to reduce serious head injuries that can result from blows to the head, from falling objects, or other hazards.
    
5. Hazard communication – In order to avoid chemical burns, respiratory problems, fires and explosions caused by not recognizing the hazards associated with chemicals, you should maintain a Material Safety Data Sheet (MSDS) and make the information accessible to employees.  Plus, you need train employees on how to read those MSDS and provide personal protective equipment, a written spill control plan, and spill clean-up kits.
    
6. Electrical – Electric shock, electrocution, fires, and explosions can be serious workplace hazards in the construction industry.  To avoid these hazards in your workplace, ensure that all electrical tools are properly grounded and extension cords have grounding prongs, locate and identify all overhead electrical power lines and inspect and ensure that equipment and materials never come within ten feet of those lines,  and maintain all electrical tools and equipment.

Ensuring the safety of your employees is important to the health and safety of your employees and the health and safety of your business.  Neglecting the safety of your employees can cause lawsuits, higher health insurance premiums, higher construction insurance premiums, and higher workers compensation premiums and related costs. 

Get the Right Construction Insurance

To learn more about reducing your construction insurance costs while acquiring quality insurance protection, contact an American Insuring Group agent at (800) 947-1270 or (610) 775-3848. We're Independent Insurance Agents, so we're free to shop among many competing insurance carriers to find the right insurance at the best price, including construction insurance, worker's compensation insurance, and every other type of insurance your business may need. Contact us today. 

What is Builder's Risk Insurance?

Builder’s Risk Insurance (a.k.a. Course of Construction Coverage) is property insurance that covers damage to a building during construction.  It may cover just the structure itself, or it can include materials, fixtures, and/or equipment being used in the construction or renovation of the building.  

Why Builders and General Contractors Need It

Builder’s Risk Insurance is often required by lending and municipal authorities. It can be required as a condition of many contracts, and it can apply to both new project construction and remodeling projects.  It protects the custom builder or general contractor from financial loss due to damage.  Builder’s Risk Insurance is sometimes purchased by the ultimate owner of the property, the lending institution, or others.

What Does it Cover and How Much Insurance is Needed?

Most Builder’s Risk Insurance policies cover damage caused by fire, explosions, lightning, hail, theft, vandalism, and damages by aircraft and vehicles. The amount of coverage should represent the total value of the structure, including labor costs and the cost of raw materials; however, the cost of the land value should not be included.  The construction budget is a good way to determine the amount of coverage needed.

It is normally taken for a period of three, six, or twelve months, but can be extended if the duration of the construction exceeds the duration of the policy, but only one extension at a time is possible.  Builder’s Risk insurance is intended to cover unforeseen damage during the construction period only.  Coverage should be effective prior to when the materials are delivered to the job site.

Once the work has been completed and the property is ready for use or occupancy, the policy terminates.  Once the Builder’s Risk coverage has expired, the new owner should take out permanent property insurance, such as a home owner’s insurance policy or a commercial property insurance policy.

What Doesn’t it Cover?

Generally, Builder’s Risk Insurance does not cover damages caused by earthquakes, employee theft, water damage, contract penalty, flood, wind, war, government intervention, damage to property left in the open, or machinery breakdown.  It also doesn’t cover damages that occur as the result of inferior quality materials, inefficient design or planning, or faulty workmanship. 

Tools and equipment are not covered.  Builder’s Risk Insurance doesn’t cover for liability or accidents that occur at the site.  It’s also important to note that Builder’s Risk insurance doesn’t cover property belonging to other people, such as sub-contractors. 

Coverage Extensions for Builder's Risk Construction Insurance

Sometimes coverage extensions are needed or recommended, such as… 

• Property in transit to worksite
• Scaffolding while located at the insured location and pertaining to the insured company
• Property in temporary storage that will be used or installed in the insured location and pertaining to the insured company
• Debris removal that’s a result of damage caused by a covered incident
• Valuable papers, such as site plans or blue prints.

Get the Right Construction Insurance

Whether you need general contracting insurance, contractor workers’ comp, builder’s risk insurance, or any other type of insurance, we have you covered.  We’ll take a close look at your business; recommend the right insurance for you, then (after shopping many competing insurance brands) offer you the best insurance protection at the best price.

To get started with the right contractor insurance for your business please contact us at (610) 775-3848 or (800) 947-1270