5 Common Insurance Mistakes Made by Construction Business Owners

1. Disorganization

A construction business owner, no matter the size of the business or the job, must have  organization.  Accounting, supplies and tools needed along with time management for each project are necessary.  A successful project will be the reward of an organized construction business and it’s owner.

2. Misstating estimated job costs

Everyone makes mistakes in every aspect of our daily lives. When Estimating the costs of a potential construction project, a construction business owner must know the numbers. Numbers being the current cost of materials, the number of hours the project should take to complete, along with any licensing or permits needed.

3. Not having the proper insurance

A roofer could be required to maintain a license/permit surety bond. Beginning a new build project from the ground up should have builder’s risk coverage; whether purchased by the contractor or the property owner. Bid bonds are also needed on occasion for certain construction projects.

4. Not addressing unreasonable contract requirements

A successful construction business owner will adhere to responsible guidelines. Unreasonable contract requirements will take extra time and valuable resources. Make sure to read and know exactly what is expected of your company before signing or agreeing to perform the job.

5. Not maximizing worker productivity and increasing worker safety.

Worker safety should be a top priority for construction business owners. Worker’s compensation insurance is needed when a business has employees. Injuries are costly, as well as time lost on the project as a result of employee Injuries.  Employer’s liability will protect the construction business owner against legal action as a result of possible employer negligence. Safety meetings and proper instruction on the tools and equipment that will be used during the course of the project are key to maximum productivity with proper workplace safety.