Better Bottom Lines: Tips for Trimming Insurance Costs
How construction companies can reduce premiums without sacrificing safety or integrity
The construction business is faced with a wide range of risks, caused by worker accidents, injuries, equipment damage, legal claims, and more. Some of these hazards can be mitigated through strict codes and regulations, but there is no way to completely avoid them, as unforeseen risk factors can arise at every stage of the game. This is what makes construction insurance essential, regardless of the size of your operation.
Although insurance coverage is a necessary expense, not to mention just good common sense, there is no reason to pay needlessly high premiums.
Here are a few ways to reduce your insurance costs without sacrificing the safety or integrity of your construction operation:
Improve safety standards
Stringent safety standards and risk prevention strategies can be instrumental in lowering insurance premiums, because the safer the working conditions are, the less likely employees are to file claims against the employer. Businesses spend over $170 billion on costs associated with workplace accidents, but reducing risk and improving safety at work can lower the premiums associated with liability insurance lowered drastically.
These are a few ways you can enhance on-the-job safety measures:
Employee training: Training workers to the highest degree are crucial for keeping accidents from running rampant. Those who do not get sufficient training pose a risk to themselves and others, and threaten substantial liability risks to the company. The best time to perform this training is during onboarding, which helps instill safety precautions from the ground floor.
Listen: workers most often discover the largest workplace risk factors. It is important that each employee’s concerns are taken seriously so that risk prevention strategies can be designed and implemented. It’s better to spend money upfront to avoid an accident than to pay for the aftermath and the rise in insurance costs.
Safety audits: Regularly assess safety strategies to identify areas not up to the preferred standard. This allows management to identify areas that could be improved on to effectively save money and lower insurance premiums.
Prioritize safety: It is one thing to say you value workplace safety, but it is another to build it into your core values. Following OSHA safety requirements and investing in health and safety training for your workers will speak volumes to insurance providers, and keep overall claims down.
Explore other options
There is no one size fits all when it comes to insurance coverage. It is important to invest some time to compare costs and coverage from multiple insurance providers. To help facilitate this process, you can opt to work with an insurance specialist, someone who represents several providers to help you weigh the costs associated with various policies and advise you accordingly.
Review and reassess coverage
Just because certain policies worked for you a year ago doesn’t make them right for you today. Your assets, for example, may have changed. Did you acquire new equipment? Have you retired any old equipment? Even the number of people on your payroll may need to reevaluate for workers’ compensation insurance purposes. In any event, existing policies need to be reflective of your current situation.
If you have the resources necessary to depend on in an event of an accident, and if you’re comfortable assuming a higher level of risk, then increasing your deductibles will help you lower your premiums. Before deciding to move forward with a higher deductible plan, calculate the amount you would save on your premiums, and if those savings are higher than what you would hypothetically pay for up to two claims, then this is a good avenue for you.
Since construction operations generally carry several different types of insurance, many brokers and carriers will offer a discount if you purchase and combine more than one policy. If you’re working with an insurance specialist, ask that those types of opportunities are identified and explored.
Invest in safe equipment
The Bureau of Labor Statistics has regularly named construction as one of the top 10 most dangerous jobs in the nation. One of the most dangerous aspects of the job is working with construction equipment, which has contributed to the injuries of hundreds of workers each year. These injuries generally result in workers a compensation claim, which, in turn, hikes up insurance premiums.
To mitigate the risks associated with dangerous construction equipment, many are incorporating battery-powered equipment into their fleet. These safer, less labor-intensive alternatives eliminate the concerns and health claims associated with exhaust fumes, while performing tasks much faster and safer than several people doing the job.
The Sherpa 100 ECO, an environmentally friendly and compact mini skid steer, has the ability to shift hundreds of pounds, saving your workers from strain and injury. The Sherpa 100 EHD is even safer. It can be controlled remotely, allowing it to get into tight or dangerous spaces instead of a worker.
Battery-powered equipment is a cost-effective solution overall. Not only will it help to reduce rising insurance premiums associated with toxic fume inhalation and work-place injury claims, it also eliminates fuel costs from your budget.
Triple E Equipment prides itself on bringing world-class battery-powered construction equipment to North American companies. It’s our mission to provide your firm with the safest and most cost-efficient options to protect your team, the environment, and your bottom line.
To learn more, contact us and we’ll be in touch.