The 4 Types of Exposure that Determine Insurance Premiums

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When an Insurance Company is looking to write a policy to cover an Insured (i.e. Owner, General Contractor, or Trade Contractor, etc.), they are looking at how much exposure they are opening their company up to. Simply put, the Insurance Company is looking to see how much risk the Insured’s line of business/trade has. Insurance companies use exposure as the basic unit to help determine the rates for each specific class of business.

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Topics: construction insurance, Exposure, Insurance Premiums

3 Differences Between Surety Bonds and Construction Insurance

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Working in construction means there are a lot of risks. Workers can be injured, equipment can be stolen, or damages could happen on the project site. Protection from these risks can take different forms. Surety bonds and construction insurance are common examples of such protection; and surety bonds are often confused with insurance.

However, it’s important to understand the two are different. Understanding the differences between construction insurance and surety bonds can help you determine which one you need on your next project.

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Topics: construction insurance, Surety Bonding, Surety

What is Reinsurance?

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Risk is everywhere; whether you are a contractor, small business or a large corporation, you must guard against risk. Insurance companies must also take measures to guard against risk. Reinsurance is when an insurance company transfers risk to other parties by a formal agreement-- thereby lessening its liability on catastrophic or multiple losses. It is insurance for insurers, and enables insurance companies to remain solvent after major claim events, such as hurricanes. 

Here is some information on two major types of reinsurance and how they work. 

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Topics: construction insurance, Reinsurance

Captive 101: Traditional Insurance vs. Captive Insurance (Part 2)

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Last week, we defined what an insurance captive is and the 3 most common types of captives. This week, we will explore if such a performance-based insurance product is appropriate for your construction company or if your insurance needs are best-fitted for a guaranteed cost program (i.e. traditional insurance). Often, the two will work together.

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Topics: construction insurance, Captives

Captive 101: The Basics Your Construction Company Should Know (Part 1)

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Have you heard the term insurance captive and wondered what it was or if one was right for your construction company? Let’s take a closer look at the basics of captives.

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Topics: construction insurance, Captives

What is a Waiver of Subrogation?

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Let’s say you are a Trade Contractor working on a project and your contract requires that you waive your subrogation rights. If you do not have a Waiver of Subrogation Endorsement on your Insurance Policies, you could very well be in breach of contract with the Owner, General Contractor or Trade Contractor that hired you. Allow us to explain.

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Topics: construction insurance

Key Differences Between Excess Liability and Umbrella Liability

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Did you know that Excess Liability and Umbrella Liability are not the same coverage? These two coverages sometimes get lumped together as the same coverage; however, that is not the case. Both Excess and Umbrella coverages add additional limits when their policies limits have been reached. Keep reading to find out what makes them different! 

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Topics: construction insurance

Basics of Builders Risk - 5 Facts You Need To Know

 

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Builders Risk insurance is a type of property insurance that provides coverage for buildings during the course of construction. This coverage protects insureds against damage or loss of equipment, materials, and/or fixtures used during construction or renovation. Coverage occurs prior to the acceptance and delivery of the building to the owner.

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Topics: construction insurance, Builders Risk

Follow These Four Safety Practices to Make Your Job Site Safer

 

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Safety management in a construction project should be second nature, but sometimes contractors may neglect important safety practices. When a construction project involves high risk and potential hazards, it’s imperative to review safety measures with workers and assess the dangers at the work site. Here are some useful safety practices you can follow to make your job site safer. 

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Topics: construction insurance

Changes to California Workers’ Compensation Premium Assessments (Part 1)

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New Legislation

In November 2017, the California Department of Industrial Relations issued a notice to “All Insurers Authorized to Transact Workers’ Compensation in California” which explained the 2018 workers’ compensation (WC) premium assessments. The new rates increase the total cost of WC for employers.

Most employers overlook their premium assessments listed on their insurance policy. Why? Let’s take a step back to understand what “premium assessments” are and how they affect WC costs.

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Topics: construction insurance, Workers' compensation

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