In a rapidly changing world, contractors are forced to reassess risk if you are serious about staying competitive. Financial risks facing construction companies seem never ending. In this article, we’ll look at just two of these, namely:
- Where will you find the skilled workers you need to stay in business?
- Will your building insurance coverage keep your business going when things go wrong?
The dwindling skilled workforce
One of the major challenges facing construction is the shortage of skilled workers. There are few entrants into the industry – young people are not signing up for these trades. In fact, the average age of the skilled worker is 41.
Unfortunately there is some stigma about entering into technical trades. Many young people are choosing to go to college instead, despite the fact that they would prefer to work with their hands. This is also an interesting choice given how many college graduates feel the financial pressure of this choice for most of their adult lives.
Build every day
So it is becoming harder to find or attract skilled workers. What solutions are there? Good leadership and sound management will go a long way to assisting with this. Future forward businesses of all sizes are doing 2 things and you should too. Stay ahead of the skills shortage problem by:
- Growing skills from within your company. This is key to long term success, but only if you look after them properly.
- Equally important is retaining the workers that you have skills.
The power of Building Insurance
A construction company’s building insurance program will include both Contractors General Liability as well as Workers Comp. This is not only because it could save your business from the expensive claims, but also because it is mandatory in most states.
The former protects your business from financial loss from third party claims including bodily injury or property damage. The latter gives financial protection from claims arising from employee injuries.
Look for more
The second consideration about your building insurance is, do you have the right policies in your program? As we have already discussed, you have coverage for third party claims and employee injury risks. But what about theft of your equipment, materials or tools? Sadly this is on the rise in all states.
Now is the time to find out more about Builder’s Risk Insurance. The two most important benefits will give you real peace of mind.
What is Builder’s Risk?
Builder’s Risk Insurance is specifically designed to protect buildings and structures that are being built or renovated. What does this mean to you? If the building you are constructing from ground up, or remodeling, or renovating is damaged, you have replacement cost coverage equal to the value of the property lost.
For instance, Builder’s Risk insurance generally covers damages caused by
The second benefit is profit protection. You can be reimbursed for a percentage of profit earned as of the date of the loss
Reassess your Building Insurance. It is time.
It’s easy to see how Building Insurance plays an important component of managing risks on your construction project. Get advice on how to customize your coverage. Speak with Contractors Liability today. Call 866-225-1950