As a contractor in the Midwest, you face unique challenges that can impact your business and your employees. The region’s unpredictable weather, especially harsh winters, can create significant risks on construction sites. From frozen pipes to severe storms, these issues can lead to costly delays and damage. Recognizing these challenges, Central Insurance has shared insights from Shawn Gentry, a loss control construction specialist, about essential insurance policies that contractors need to safeguard their operations.
Midwest contractors must be aware of three major risks. First, severe weather and low temperatures can cause unexpected problems, such as frozen pipes, which often go unnoticed until significant damage occurs. Second, legal and liability risks have escalated in recent years. The rise of “nuclear verdicts” means that lawsuits can result in extremely high financial penalties, especially in cases involving serious injuries or fatalities on job sites. Third, the construction industry is grappling with a labor shortage. An aging workforce coupled with a lack of younger, skilled workers has created a skills gap that increases the risk of accidents and inefficiencies.
To protect against these risks, contractors should consider several key insurance policies. General liability insurance is crucial, as it covers third-party claims for bodily injury or property damage arising from construction activities. Workers’ compensation insurance is also essential, as it covers medical expenses and lost wages for employees injured on the job. Builder’s risk insurance protects the construction site itself from damages caused by fire, theft, or severe weather. Additionally, commercial auto insurance is necessary for contractors who use vehicles for transporting equipment and workers. Umbrella insurance provides an extra layer of coverage beyond existing policies, which can be vital in the face of large claims. Finally, pollution liability insurance is important for contractors involved in construction, demolition, or excavation, as it protects against claims related to environmental damage.
Implementing strong loss control and risk management strategies is key to reducing risks and securing affordable insurance rates. Gentry emphasizes that effective loss control can improve safety on job sites and lower insurance premiums. Contractors who prioritize safety and risk management not only protect their businesses but also enhance their reputation, making it easier to attract clients and skilled workers.
Choosing the right insurance provider is equally important. Contractors should seek out companies that understand the specific challenges of the construction industry in the Midwest. Central Insurance prides itself on building strong relationships with its clients, helping them find tailored coverage to meet their needs.
By focusing on these essential insurance policies and risk management practices, Midwest contractors can better protect their businesses and ensure smoother operations, no matter what challenges the weather or the industry may bring.