The Common Insurance Every Serious Construction Contractor Must Have

More often than not, construction insurance is necessary for each construction project. This kind of insurance typically offers coverage for natural disasters, risks, material, employees, as well as your company. Here are some of the most common insurances for the construction industry.

  1. Contractor Liability Insurance Coverage

For protection against injuries, property damage, and accidents suffered on the job, there is a need for a good contractor liability insurance coverage. Also, workers in the construction industry can accidentally damage property by mishandling materials and tools, or while a remodeling process is ongoing.

  1. Builder’s Risk Insurance

This insurance policy covers the payment if there’s any damage as based on the coverage limit. This limit is a solid representation of a given structure’s entire completed value. In other words, it includes all materials and labor cost, without land value. Coverage for damages resulting from faults such as design, planning, materials, and workmanship are not included.

  1. Performance Bond

In a situation where the contractor is unable to perform or fails to complete the project according to established and provisions of the contract, the performance bond will help to protect the owner against possible losses. The surety will be responsible for reimbursing the owner for losses in cases where the contractor declares bankruptcy or defaults.

  1. Payment Bonds and Construction Projects

To ensure all subcontractors, material suppliers, and laborers are paid to leave the project lien free, there is a three-way contract, the payment bond, formed between the owner, the contractor, and the surety.

  1. Professional Liability Insurance

Professional Liability Insurance covers errors caused by Contractor’s carelessness while carrying out his functions under the specified agreement. If your omissions and errors resulting in loss of client investment or if you do not perform your contractor duties, the insurance covers your litigation expenses.

  1. Flood Insurance

Flood insurance may be beneficial (or required) in situations where a project is located in a flood zone. It is needed for avoiding insurance solicitations when the construction project could be impacted by a flood event.

Construction Insurance Cost Control

By completing your jobs in a timely manner and maintaining excellence in your construction business operations, you can save with smaller premiums and deductibles in your insurance.

On the lookout for other great information about insurance topics? Contact us anytime for all insurance related questions.

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Tips for Building More Efficiently this Year

It’s shaping up to be a busy year for building. Already, construction companies and tradespeople are finding ways to stay ahead of the pack. See what others are doing to improve construction and building in 2018.

1. Build Modular

One of the newest trends in construction is the building of modular dwellings, units, and other fabricated parts. Building on one location before delivery allows for greater environmental and waste control. It can also help limit liability by increasing control over access to the construction site, tools, and materials. The tiny home movement, modular mid- and high-rises, and other offsite construction methods are growing in popularity.

2. Embrace Technology

Nearly any aspect of construction can be augmented with a technological device, software, and other advancements in tech. While it’s possible to lean too much on technology, a balance of the right tech can add exponential value to a project. Drones, cloud sharing, GPS tracking and enhanced employee communication are just a few of the many options available. Be sure to follow all applicable local and federal laws utilizing drones and other technology. Design tools, virtual meetups and more can increase productivity utilized correctly. Find the right tools for your team and accomplish more.

3. Attract Talent (and keep it!)

Labor shortages are already apparent; some companies are grappling with more work than skilled labor to complete it with. For others, projects-in-progress have been placed on pause due to immigration enforcement. To stay ahead of the competition, some construction companies are offering better pay and benefits. Others are relying more on temporary labor. Finding help may become a challenge, be prepared to court skilled tradespeople and work diligently to retain them.

4. Go Green

Environmental awareness is growing and companies with a reputation for green policies are more likely to see revenue. Material waste and disposal, resource consumption, and environmental impact can affect company image. Wherever possible, implement sustainable policies and be sure to comply with all federal, state, and local laws. Expect this trend to continue. Companies taking a proactive approach will be better positioned for further legislative changes.

5. Control Costs

Almost ten years after the housing crash, lenders have yet to release funds with the same willingness as before. Materials costs are high, and increased costs for attracting labor add to the challenges of doing business this year. This year, more builders are contracting into public-private partnerships with government agencies. In this partnerships, public funds and assets can be made available for hiring private companies. This can be a great way to maintain infrastructure while stimulating the economy, and more builders are discovering the value.

6. Building Information Modeling

The latest in construction innovation, Building Information Modeling (BIM) is a great tool for improving the construction process. Building Information Modeling is a design and management tool. Builders, architects, and others in the design and construction process can collaborate with this BIM to deliver a winning project. Building Information Modeling can also have a positive impact on workplace safety and compliance and can help limit expenses. For more on BIM contact a Business Information Modeling firm or expert.

7. Communicate

While perhaps an older concept, communication on the job site can almost always be improved. Today, multiple digital solutions for encouraging and improving communication are available. Builders have schedules to keep and communication can help increase efficiency and safety. Missed deadlines, liability claims, and materials waste can add up. Stay on top of projects with clear, competent communication.

Approaching 2018 with a positive attitude can help gain the edge over the competition. Review practices to see where improvements can be made and see how much more business is possible. Come back often for more on ways to improve efficiency and save money.

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Build Faster with Construction Tips from the Pros

Builders spend a lifetime perfecting their craft. Fortunately, some are willing to share some of their best tips and tricks. Here’s a quick rundown of several inside tips from the pros.

Laying the Groundwork

Installing flooring can be challenging depending on the materials and surface. Taking time to ensure a level floor will improve the finished product. Installing an effective subfloor can help with creating a level surface, yet the glue can be messy and difficult to work with. To install subflooring without the mess, gently lower subfloor with a garden digging tool. Applying pressure to the leading edge, install subfloor without the mess.

The Frame Game

Most homes have imperfections and the older they get, the greater those imperfections become. Homes settle and before long, floors and walls begin to curve, slope, or separate. Before making cuts or installations, learn the acceptable tolerances. Some aspects of construction must be perfectly level or straight. Knowing where to make adjustments will make the process much easier, and help create a better result.

Frames must be straight, so it’s important to start with a level foundation. Mudsills allow for some flexibility while rim joists must be cut within 1/10th an inch accuracy. Walls can bow a bit, as long as kept within an acceptable limit. Walls can bow up to 1/4″ vertically for each 8′ section, and 1/4″ horizontally for each 50′ section without compromising structural integrity.

The frames in a home support plumbing, electrical, HVAC installation and more. An accurately-installed framework will help make following projects easier to complete.

Selecting Good Wood

Lumber varies by retailer, batch, and tree. Selecting the lumber for framing, look for straight and durable boards. Curved, bowed, or rotted boards will create a weak or imbalanced foundation from the start. Cabinets, doors, and walls require straight walls to function properly. Selecting the right wood, at the beginning, will help the entire construction project.

With any construction project, selecting the right materials and tools helps. Before tackling a construction project, ensure home insurance is in place to cover potential damages to the new or existing space. Always place safety at the top and ask a professional before working with dangerous materials.

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Improve Construction Workforce Management to Reduce Risk


In construction, efficiency matters. Companies that want the most from a project have to balance resources and deadlines to be effective. On the flip side, companies that struggle may create unsafe environments. Increased pressure on workers can lead to an increase in job site risks and an increase in insurance premiums. Improve productivity and reduce insurance rates by employing effective construction site management. Finding the right people and granting them the tools for success will help reduce risk, leading to savings across the board. Here are four ways to help construction managers perform at their peak:

Standardize Company Processes

Today, companies across the board are standardizing their processes. For companies experiencing growth, processes are often essential. A process defines a system for accomplishing specific tasks. By creating and utilizing intelligent and effective processes, risks are greatly reduced. With a reduction in risk inevitably comes a reduction in workplace accidents, reducing insurance costs. The right process is one built around the company; a business coach or consultant may be able to offer guidance. Record processes and train staff to follow them.

Utilize Technology

Construction of a building is but one small portion of an overall construction project. A large number of administrative resources are involved in building. Planning, compliance, resource management, billing and more all play significant roles. As companies grow, the number of persons involved in each project tends to grow as well. Moving staff onto shared digital platforms, utilizing file sharing services, and group messaging technology can all help managers become more efficient.

Plan Efficiently

On a construction site, time is money. When employees are standing around, their time can become expensive. Proper planning can help get the most out of staff and dodge paying for extended breaks or milling about. The more moving parts involved, the more challenging this can become. To help improve efficiency and reduce risk, ask employees to be conscious of workday planning. In some cases, a consultant may be helpful in creating and streamlining schedules.

Encourage Communication

A staff that communicates well is likely to be safer and more efficient. In the construction and building trades, risks abound. Effective communication can help reduce risks and at the same time, greatly improve efficiency. The right blend of communications strategies will depend on the size and makeup of an organization. For most companies, the following tips can help improve the workplace:

  • Collaboration. Encourage staff to share thoughts. Oftentimes, there are great solutions right within the company. Create a positive environment for communication.
  • Clarity. Be clear about goals, objectives, timelines and more. Employees should be familiar with processes and know where to ask for help.
  • Conversation. Staff members may be the first to spot a workplace hazard, or perhaps a more efficient process. Encourage feedback to management.

With an increase in workplace safety often comes increases in productivity and morale as well. Limit risks to reduce insurance premiums and get the most out of each construction project. Construction companies with strong management and a strong workforce are more likely to:

  • Meet or exceed expectations
  • Reduce risks to property, staff, and equipment
  • Balance scheduling
  • Gain a positive reputation in the industry

An investment in creating clear and effective processes can pay dividends. For questions about insurance for builders and protecting construction sites, contact an agent today. Visit often for more information on improving safety and saving money.

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It’s Time to Get Tailored Construction Insurance

In the construction industry risk is inherent. Those able to assess and mitigate risk increase their chances for success. On the job site safety is an attitude. The right methods, equipment, and crew can help keep sites and people safe. For those behind the scenes, the risks are met with comprehensive construction insurance protection. Construction projects take all shapes and forms. Protection tailored for each project will offer maximum coverage for the best rates, helping improve the bottom line.

Projects large and small tend to include third-party contractors for some portion of completion. Landscape architects, HVAC professionals, and other design professionals may be contracted to perform a portion of construction. Add layers of protection to design and builder contracts with the right insurance protection. Tailored policies include coverage for job-specific risks. The strongest contracts include professional liability, auto and commercial liability, and employer’s liability; also referred to as workers’ compensation. As the builder, it’s reasonable to ask for this upon entering into agreements. For added coverage, homeowners and builders may wish to ask for pollution insurance as well.

Experts recommend including insurance protection as part of contracts with those performing the work as well. The subcontractors working on the construction site should be licensed and bonded. It is also recommended they carry personal liability insurance and workers’ compensation protection. Depending on the contract excess and professional liability may prove smart additions to a policy. For larger projects, builders and lenders can add owner’s protective professional insurance to a policy. This addition covers gaps in coverage from those contracted.

Liability insurance protects builders, lenders, and design professionals in 3 different ways:

  • Protection from claims against the company or staff
  • Coverage for damages caused by the company or staff
  • Assistance with unexpected expenses during claims

A construction project can involve many people over the course of completion and may last longer than expected. The chances the unexpected can occur are high; ask an agent about professional liability insurance.

Builders Risk Insurance Protection

The protection from liability insurance extends to staff and damages caused during construction. This leaves a gap in protection for the physical structure. For home construction projects homeowners can opt for construction insurance for active projects yet these carry significant limitations. For extra protection builders-risk insurance offers advantages for all parties. A single policy is sufficient and may be purchased by either the homeowner or contractor. The following details may help determine which party might procure builders risk insurance for the project:

  • Location of the project
  • Lender insurance requirements
  • Type of construction project

Some contractors may automatically carry builders risk. For more information on builders-risk policies and insurance protection contact an agent.

Protect Investments

Liability and builders-risk insurance create a safety-net for construction projects from start to finish. Construction insurance has advantages for homeowners, builders, and contractors. For extra protection and to cover project-specific requirements, additional insurance policies are available. Speak to an agent to create a complete shield of insurance protection for construction projects.

For more information on insurance for construction projects, home builds, building renovations and more call an agent today. Get affordable coverage and gain peace of mind. Our team is happy to answer questions.

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The Silica Standard Fully Enforced

Construction builders will want to hear this: OSHA’s Directorate of Enforcement Programs is getting serious about the silica standard. In a recent memo, acting director Patrick J. Kapust says that as of October 2017, OSHA is going to enforce all the provisions of the silica standard. This can be challenging for some companies, as compliance and insurance costs can change.

The new standard creates guidelines for construction companies. Under the OSHA standard, exposure limits of 50 µg/m3 and an action level of 25 µg/m3 are the maximum allowable in an eight-hour period. This standard has been in place since September, allowing companies to conform to the new standard prior to official OSHA enforcement.

This memo is the interim directive while the final regulation language passes through the formal review process. Once the regulation is finalized it will replace this and any other related OSHA memos. Agents in the field will operate off the most-recently issued directive.

Several options for protecting against silica inhalation are available. Particle catchers, exhaust systems, and personal respirators all help protect employee respiratory health. This helps employees lead happy and healthy lives, and also reduces company insurance risk.

For more information on OSHA compliance for silica and other safety regulations, contact the Occupational Safety and Health Administration at 1-800-321-OSHA. Industry regulations affect insurance premiums and requirements. For more information on how OSHA rulings affect construction companies contact an agent today. For insurance quotes, questions about coverage, or any other insurance matters call an agent anytime.

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