Many commercial contractors, as well as business owners, are considering using contractor controlled insurance programs as a way to help manage risks that are often inherent with building commercial spaces. But before using a contractor controlled insurance program, you should consider how these programs work to determine if it is the best thing for your company.
- Having a Single Insurance Program for the Whole Project
One of the reasons that contractor controlled programs are increasing in popularity is because there is only one insurance program that serves the entire project, rather than having multiple different insurance policies for different aspects of the building process. This can make it easier to file claims and know what the insurance program will cover. It can also keep your premiums lower by using one provider for the whole project. However, you may have fewer choices when it comes to choosing an insurance provider, because your contractor may have a company that they exclusively work with.
- Safety Programs
Many contractor controlled insurance programs feature safety programs that are designed to keep work related accidents and injuries down. Not only does this keep your workforce safer, but it also reduces the number of claims that must be filed from these accidents and consequently keeps your overall costs down. Preventing accidents by educating your workers on safe practices is one of the most effective ways of keeping them safe on the job and lowering insurance costs.
- Selecting Subcontractors
Another crucial aspect of a contractor controlled program is the subcontractor selection process. It is crucial that these programs get you the best and most qualified subcontractors available to work on your project and provide you with the best possible work. Contractor controlled programs are often in the best position to provide quality subcontracting work, because they can hire subcontractors with excellent safety records and a history of quality work.
- Comprehensive Risk Management
Finally, good contractor controlled programs partner with insurance companies and brokers to evaluate and anticipate the many different kinds of risks that these complex commercial construction projects may present. By understanding what risks are likely in such a project, the program can account for that potential cost, budget for it accordingly, and help contractors and workers understand the risks and how to best avoid them.
If you are a general contractor considering a contractor controlled insurance program, be sure to check for the four elements listed above. A quality program will be comprehensive and well planned and will consider the best interests of you and your subcontractors and workers.
These programs are becoming increasingly popular because of their comprehensive nature and the way that they make dealing with insurance claims and risk management much simpler. They can be a good solution for general contractors who want to make the management and claims aspects of the building process as easy as possible. By doing research, you are likely to find a contractor controlled program that is right for your business.