Operating a construction company takes patience, ambition, and a strong sense of responsibility. The industry is worth billions of dollars and federal and state regulations are plentiful. Your insurance policies offer protection, but filing a claim can cause higher premiums. Avoid filing a construction claims for one of these four common situations to keep your costs lower and your business operation.
Third-Party Injuries
The first step to avoiding construction claims is to provide extensive safety training for new employees and periodic refresher courses for all employees. Always train your workers in safety regulations and be sure to enforce them. Regularly testing your equipment and replacing anything that shows damage is also important. Do your best to avoid allowing clients to visit the site. They don’t know the safety protocols and are more likely to injure themselves than your employees are. Still, some of them will insist on visiting. Invest in contractor liability insurance to protect yourself and your company if an injury does occur.
Damage or Theft of Equipment
A strong construction insurance policy may help if you lose tools or materials to theft or damage, but taking steps to prevent doing so is also important. Protect your entire job site with high-quality security cameras, and install GPS tracking on heavy machinery that someone may try to drive or haul away. Keep in mind that a separate policy may be necessary to protect from vandalism, inclement weather, or fire. Always verify what your policy covers with your insurance agent.
Faulty or Late Construction
Mistakes can lead to unsound structures that have cracks, mold, or other problems. Your client could be liable for shoddy work and may decide to sue you for damages. The best idea is to ensure you vet your employees thoroughly, but providing a surety bond offers extra cushion should something go wrong. A surety bond can also protect you if you miss a project milestone because of delayed materials or other unexpected problems.
Slow Seasons
If you operate your business in the Midwest, you might not have business during the coldest or rainiest parts of the year. Seasonal slowdowns often cause financial hardships for businesses. While you can purchase OH contractor’s insurance to protect you, work to prevent the hardship in the first place. You may not be able to plan for heavy rain, but you can plan for the winter slowdown. Save money now to cover business expenses, such as office rental or utilities, even when you aren’t working. If you know you’ll have a project as soon as the weather warms up again, talk to your clients about a deposit to help you stay afloat.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
