Knowledge Corner

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As a policyholder, you may recognize that there are some California Workers’ Compensation Premium Assessment Rate changes. In 2022, policyholders can expect to see a significant increase in their California Premium Assessment rates, which is independent of their Workers’ Comp rates.

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On projects with diversity goals, regulations require that certified firms provide meaningful participation, in other words, they must provide a Commercially Useful Function on their projects. When Contractors execute agreements that include diversity goals, they are committing to utilizing certified firms in a manner consistent with the regulations.

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Which coverage do I need – Excess Liability or Umbrella Liability? Both? Neither?

Your construction company has all the necessary insurance coverage it needs, or does it? Why would you need either an excess liability policy and/or an umbrella liability policy? First, let’s examine what each of these policies covers and then why it might make sense for your company to examine either one.

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When it comes to risk financing for Contractors, there are a variety of methods that can be used to fund “hazard” losses. From Large Deductible Programs to Captive Insurance Programs, and more. One method for Contractors might want to consider is a Self-insurance Program. Before you do, here are 6 facts of what you need to know:

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In a contract, you are contractually bound by the indemnification article to pay for liabilities in whatever form you prefer. Payment of potential liabilities could bankrupt a company when the liability’s value exceeds the assets of the firm. As a result, contractors obtain insurance to cover these situations. The Owner typically recognizes this and includes another contract article (“Insurance”) to ensure the contractor has adequate means to pay for its liabilities, thus protecting the Owner.

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The goal of having a Risk Management Plan in place is to minimize your company’s risk. This protects you, your company, and your employees.

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Implementing a sound Risk Management program for your construction firm is necessary. Protecting your Business Risks, Strategic Risks, Financial Risks, and Hazard Risks is crucial to creating longevity for your company. When you have a solid Risk Management program, not only are you providing your company with the best protection possible, but you are actively caring for your employee as well.

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Have you wondered why your construction company is paying $X for your insurance premium while another firm is paying $Y? An insurance premium is the amount you pay your insurer for your insurance policy. An insurance company will use a variety of factors to determine how much to charge their insureds for their premiums. Let’s take a look at a few basic factors that affect your insurance premium.

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As a Contractor, you wear a lot of hats – salesperson, customer service, quality control, etc. You understand you cannot be satisfied with the status quo if your business is going to thrive. You must be constantly looking for new jobs, sourcing quality materials, and providing excellent work for clients every day. One hat you need help with is your insurance program. If your Broker is a true business partner, he/she gladly wears that hat.

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With your insurance program’s term coming to an end, you might be starting to think about your upcoming renewal. It might seem easier to stick with the status quo and renew the same program, with the same Broker. However, before you do that, check out our 5 steps to implementing a proper construction insurance program.