Our video about the benefits of using an independent insurance broker.
Monday, January 17, 2011
Wednesday, January 5, 2011
Taking On Unfamiliar Jobs Increases Risk for Contractors
During the economic downturn, many contractors take on new types of projects, which can increase risk. They may become involved in new relationships with subcontractors that have inadequately trained employees or move into territories that have a different legal claim environment.
Exposures become still more complicated when contractors move into states in which they have not previously operated, forcing them to work with new subcontractors. Economically, contractors may underestimate the risks and exposures in a new type of building and quote a price too low for the project. Contractors that lack expertise may benefit from a joint venture or integrating that business through merger or acquisition.
As a contractor, if you do decide to take on projects in a new sector or geographic area, act with caution and be sure to advise your insurance broker of your decision. They can help you determine whether you have sufficient coverage.
Exposures become still more complicated when contractors move into states in which they have not previously operated, forcing them to work with new subcontractors. Economically, contractors may underestimate the risks and exposures in a new type of building and quote a price too low for the project. Contractors that lack expertise may benefit from a joint venture or integrating that business through merger or acquisition.
As a contractor, if you do decide to take on projects in a new sector or geographic area, act with caution and be sure to advise your insurance broker of your decision. They can help you determine whether you have sufficient coverage.
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