Safety tips to protect your contracting business and employees

In the contracting world, it really can take sweat and tears to build up a business. After all the hard work you’ve put in, you don’t want to see anything bring your company down. But the reality is, by the nature of the work, contactors are at greater risk for losses that could potentially devastate a business. Protecting your livelihood, your employees and your assets begins with understanding what you’re up against on the job every day.

Some of the top causes of financial loss for contractors include:

• Fires: Workplace fires cost businesses more than $5.6 billion in property damage in 2023 according to the National Safety Council (NSC).
• Workplace accidents and injuries: “The total cost of workplace injuries in 2023 was $176.5 billion,” says the NSC. The average cost of each workplace death, with employer costs, was over $1.4 million in 2023, while the average cost of a medically consulted injury at work was $43,000.
• Theft of equipment and building materials: Estimates put annual construction site equipment theft costs as much as $1 billion, according to the Insurance Journal.
• Construction defects: The number of lawsuits alleging construction defects is on the rise.

The stats are eye-opening. But the good news is, when you go into the job with a clear view of the potential pitfalls, there’s a lot you can do to protect your profits.

Here are a few tips to get you started.

1. Don’t get burned

To mitigate your risk for fire, be sure to:

• Lay oil- or solvent-soaked rags out in the open to dry, or store them in an air-tight, fire-resistant container away from potential ignition sources and combustible materials.
• Carefully dispose of matches and cigarette butts.
• Make sure electrical work is performed by a licensed and reputable electrical contractor.
• Have fire extinguishers available. Make sure they’re in working order and that employees know how to use them.
• Create a custom fire emergency and evacuation plan.

2. Play it safe

Safety’s no accident. To proactively make your site safer:

• Conduct regular site walk-troughs and hold regular safety meetings.
• Keep the worksite clean and free from debris and other hazards.
• Use the right Personal Protective Equipment (PPE) for the job.
• Be sure guardrails are in place.
• Inspect equipment for damage before use. Make sure employees understand which tools to use for which jobs.
• Escort any non-employee guests who are visiting your job site. 

 

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3. Lock out loss

To protect your assets from theft or vandalism:

• Lock down all equipment, tools, building materials—such as copper—and vehicles when not in use.
• Keep careful records of your equipment. Identify your assets by labeling or marking them.
• Put up fences around the job site.
• Use theft-deterrents such as wheel and ignition locks and/or fuel shut offs.
• Consider investing in security cameras or security guards. At a minimum, ask local law enforcement to frequently patrol the area.  

4. Cover your bases

To protect yourself from liability and loss:

• Before starting a new job, sign a legal contract that spells out what work is included—and what isn’t.
• Hire only licensed, certified and well-trained subcontractors. Make sure each subcontractor understands his or her scope of work.
• When possible, legally transfer risk to subcontractors. Thorough, written subcontract agreements are best practice, no matter how small the job might be.
• Partner with your independent insurance agent to make sure you are properly covered for the work you’re doing.
• Check each subcontractor’s Certificates of Insurance to make sure they carry adequate minimum limits that protect you should they cause an accident. You should be named as an additional insured on their policy, if possible.

References
- OSHA
- Bureau of Labor Statistics
- National Safety Council
- Insurance Journal

Coverages described herein may not be available in all states. Please contact a local independent Grange agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Grange Insurance policies are underwritten by Grange Insurance Company, Trustgard Insurance Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan and Grange Property & Casualty Insurance Company*. Not all companies are licensed in all states. *Not licensed in Pennsylvania.