I am always looking to help out my clients. I recently was asked if having employee insurance and state-required insurance policies are enough in the case of an on-the-job construction accident. Savvy business owners know they have to protect both their employees and their company.  Construction insurance is vital. But, do you know how to purchase it? I did some research on the topic to help answer the question and I thought I would share the information.

I learned that employers can save money by really investigating what type of construction insurance they have for each job. Insurance underwriters use the type of construction being performed as the main way to determine risk (and your rate).  Construction deemed high risk will carry higher premiums, while contractors involved in lower-risk projects will generally enjoy lower premiums. So, if you don’t want to spend tons of cash on insurance opt for lower-risk projects.

Get everything in writing.  Employee accountability seems to slip through the cracks often when it comes to construction companies. I know everyone is busy, but it is important to have employees sign on the dotted line when it comes to safety procedures. The reason is 1. the employee’s safety and 2. showing underwriters that your employees know, understand and agree to the rules of the project.  It will also help you discipline an employee who is not following safety procedures.

The last thing I learned about construction insurance is sub-contractors can send your rate through the roof.  Sure some work, like electrical and plumbing services, may need to be subcontracted. But limiting the amount of subcontracting — and its associated legal liability — could lower the premiums substantially. See what internal resources you have to hire and not subcontract out to save money.

I love that everyone is sending in questions. Please continue. Reading your points of view and researching the answers to your questions has been fun and challenging at the same time.

Until next time,

Britanie Olvera