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The Construction Industry is BACK! But What Does That Mean for Insurance?

January 20, 2015

2014-08-life-of-pix-free-stock-photos-House-beach-USA-flag-flowers-courtyard-BenchAccording to a recent article in Business Insurance – construction projects have significantly increased in number since the financial downfall of 2008 and insurance carriers have the capacity to add construction business to their books – in other words, they want to write more.   Here’s what we see – in order to get great rates with preferred carriers, contractors need to adhere to some pretty strict underwriting guidelines.

  1. Workers’ Compensation – one of the largest expense items behind payroll.  Carriers want to see low Experience Modification numbers – sub 1.00 and strict safety measures in place.  Loss control is key to managing the cost.
  2. Auto – In order to get those preferred rates, you need clean Motor Vehicle Reports, minimal at-fault accidents and strict safety training.  Texting and driving tickets just won’t fly with most carriers due to the increased liability claims we are seeing due to distracted driving incidents.
  3. Equipment – It’s all about consistent maintenance schedules and employee safety training.
  4. Property – although last on our list, many of our larger contractors do have significant building and contents values.  Carriers like to see fire protection – firewalls, sprinklers and a fire hydrant within 1000 feet of the building.

Our contractors are finally rebounding, if you are struggling with any of the above portions of your policy – perhaps it’s time to sit down and discuss how we might be able to help you get your premiums under control.

Mark Greco Contractor Specialist Founders Insurance Group

Mark Greco
Contractor Specialist
Founders Insurance Group

Mark Greco

Contractor Specialist Founders Insurance Group

mgreco@foundersgrp.com

www.foundersgrp.com

860-482-3506

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