Insurance policy terms and conditions are often misunderstood or worse, glossed over, providing a false sense of security. Weighing risks against the cost of coverage is an important consideration that requires your insurance consultant to provide a thorough analysis of coverage combined with a deep understanding of your business.
Do you really know what your insurance contract covers?
Increasingly, contractors are expanding their scope of services, entering into unique and complicated projects, adding business lines, or expanding their geographic footprint. While potentially lucrative from a business point of view, increased exposure to potentially new and/or sizeable risks need to be considered.
By asking informed questions a deep awareness of exposures is understood. For example:
- Does your firm engage in design / build projects? If so, do you have adequate professional liability coverage?
- Have you adequately addressed environmental exposures?
- Do you engage in joint ventures? If so, did you secure a special general liability policy?
- Is your geographic footprint expanding? If so, does your current insurance advisor have the resources to address multi-state and/or international needs?
Deploying Best Practices
People and Processes drive best practices in the management of an insurance program.
Most team members have been working in construction insurance or surety for most of their career. Team member professional designations include CPCU (Chartered Professional Property and Casualty Underwriter), CRIS (Construction Risk and Insurance Specialist).
Communication is essential to effective process – whether it is with underwriters, team members, or clients. When communication breaks down, mistakes happen and misunderstandings are common.
A Service Calendar establishes timeframes and expectations for routine tasks, bidding of coverage, contract review, and in depth projects such as workers compensation audits.
Proactive Claims Review and Management
The frequency of claims for a contractor can be 10 to 12 times as great as other industries. Managing the claims process is essential. Agreeing to pay claims that are illegitimate or overstated can have a long-term negative impact to contractor profitability.
Establishing appropriate deductibles and protocols with insurance company claims departments is essential.
Thoughtful Underwriting Submission
The Fedeli Group construction team is known for integrity in dealing with insurance markets. We have earned this reputation over many years through countless interactions with insurance underwriters. Because of our background and focus in construction, underwriters trust that we know your business.
As much as the underwriter wants a “right fit” in terms of risk profile, clients must also consider “appropriate placement.” Appropriate placement goes beyond price and includes an insurer’s ability to provide services that address existing or changing needs. For example, do you need the services of a national insurer or will a regional insurer with limited risk management services meet your current needs?
With The Fedeli construction team you can be assured that your business situation is understood and that an effective market positioning strategy will be employed.
A Challenging Workers Compensation Environment
Navigating the complexities of workers’ compensation state by state is an area of expertise offered by The Fedeli Group Construction team. We have experience in a wide range of states and understand the nuances of most major markets. Where we don’t, we can quickly research and assist in crafting the best situation possible.
Our team will provide you with workers’ compensation claim audits. With these audits we analyze claims for accuracy so that appropriate “mod” factors can be applied to the premium rating. A thorough workers’ compensation claims audit can yield surprisingly positive results with the result being improved profitability for the contractor.
Construction firms face unknown environmental conditions with each job. The economic losses and defense costs can be staggering and Commercial General Liability (CGL) policies exclude these exposures.
Contractors customarily refer to local utilities for disclosures. But what about underground storage tanks, piping, contaminated fill, buried materials such as drums, and other potential hazardous materials? Through no fault of the contractor, entanglement with regulators and increased site cost is a real possibility.
Increased awareness of this risk by owners, GC’s, and contractors make contractor’s pollution liability (CPL) coverage a must.
Price versus Coverage
Contractors face a competitive landscape. And price is always important. As a dedicated construction practice, we recognize the pressures that contractors face. But the wrong coverage with the “right” price can be detrimental.
Getting the best price for the right coverage requires attention to the details, diligence in negotiations with underwriters, and a thorough understanding of your business activities.