Construction Concerns for 2020 and Beyond (Part 2)

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The forecast that the construction sector will continue its growth pattern reflects the strength of the economy even late in this business cycle. A tremendously strong job market—coupled with low interest rates and a generally robust stock market—are working to ensure that 2020 remains strong overall.

Yet, there are growing concerns that may point to slower growth beyond 2020. A recent economic outlook survey by the National Association of Business Economics put the odds of a U.S. economic recession starting by mid-2020 at 30%, with an estimated increase to 60% by the end of next year.

Here are several potential threats that could affect the robust growth in the construction industry looking forward.

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Topics: Construction Insurance

Construction Growth for 2020 (Part 1)

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When we look back at the U.S. economy this year, we see it performed reasonably well during the first half of 2019. Job growth for the economy as a whole was at a level that added almost $2MM in additional payroll positions this year. The stock market showed healthy gains and inflation has been kept under control. On a broad scale, the economic growth for 2020 is projected to be 2% at an annualized rate.

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Topics: Construction Insurance

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. These are the four different ways that insurers can utilize the exposures.

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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.

In this post, we will explain the process behind a waiver of subrogation.

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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 Builder's Risk - 5 Facts You Need To Know

 

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Builder's 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. In this blog post, you will learn about the basics of builder's risk, with 5 key facts. 

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Topics: Construction Insurance, Builders Risk

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