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risk management seminar by Insource Help


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Risk management services for contractors

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risk management seminar by Insource Help

  1. 1. Your Helpful Information Resource
  2. 2. Has this ever happened to you?
  3. 3. Understanding Risk <ul><li>Avoidance </li></ul><ul><li>Retention </li></ul><ul><li>Loss Prevention & Reduction </li></ul><ul><li>Transfer </li></ul>
  4. 4. Avoidance You avoid the risk by wearing protective gear, or the spill, or not trespassing in an authorized only area
  5. 5. Retention You measure how much risk you are willing to assume
  6. 6. Loss Prevention & Reduction You reduce the risks by preventing accidents, employing safety procedures, and putting security in place
  7. 7. Transfer Shift the responsibility or burden for disaster or loss to another person, by legislation, contract, or insurance (ex: additional insured endorsement)
  8. 8. Sample Risk Management Survey <ul><li>Between the broker and the contractor </li></ul>
  9. 9. Role of Broker & Contractor <ul><li>Roles/Responsibilities of each – Broker and Contractor </li></ul><ul><li>How Risk Tolerance Affects an Insurance Portfolio Design </li></ul>
  10. 10. Role of the Broker <ul><li>Your insurance broker represents you not the insurance company </li></ul><ul><li>Based on your risk tolerance, will work with you to create an insurance portfolio which reflects deductibles that you are comfortable with </li></ul><ul><li>Website and Social media interactive For the latest on your insurance needs (ie LinkedIn) </li></ul><ul><li>Is your claims advocate should you experience a loss </li></ul>
  11. 11. Role of the Contractor <ul><li>Determine how much risk you are willing to assume </li></ul><ul><li>Disclose to your broker, infor- </li></ul><ul><li>mation regarding your business’ </li></ul><ul><li>assets – equipment, property, </li></ul><ul><li>employees, commercial vehicles </li></ul>
  12. 12. Do you feel like your current insurance program is taking you in circles?
  13. 13. Designing an Insurance Portfolio for Contractors <ul><li>The Contract </li></ul><ul><li>The Contractor </li></ul><ul><li>The Sub-Contractors </li></ul>
  14. 14. The Contract <ul><li>Contract language appropriate/correct for insurance coverages </li></ul><ul><li>Builder’s Risk </li></ul><ul><li>Certificates of Insurance </li></ul><ul><li>Installation Floater </li></ul>
  15. 15. Contract & Insurance Language <ul><li>Does your contract clearly state the insurance coverage that you have in place for this contract? </li></ul><ul><li>Have you had your contract reviewed by an insurance broker for properly insurance language? </li></ul>
  16. 16. Builder’s Risk <ul><li>All buildings and other structures that require coverage during construction </li></ul><ul><ul><li>Scaffolding, temporary forms and structures </li></ul></ul><ul><ul><li>Building materials and supplies needed to complete the structure </li></ul></ul>
  17. 17. Certificate of Insurance This is one of the most important document that you will need on a contract; and it is one of the most misused and Incorrectly completed. Errors are frequently made regarding who requires a certificate; the required coverages; and the wording on additional insureds.
  18. 18. Installation Floater <ul><li>Provides for coverage for items awaiting installation or during installation: </li></ul><ul><ul><li>Fixtures </li></ul></ul><ul><ul><li>Furnishings </li></ul></ul><ul><ul><li>Cabinets </li></ul></ul><ul><ul><li>Materials </li></ul></ul>
  19. 19. The Contractor <ul><li>Equipment & Tools </li></ul><ul><li>Commercial Auto/Trucks </li></ul><ul><li>General Liability </li></ul><ul><li>Errors & Omissions </li></ul><ul><li>Umbrella Liability </li></ul><ul><li>Workers Compensation </li></ul>
  20. 20. Equipment/Tools
  21. 21. Commercial Autos/Trucks
  22. 22. General Liability
  23. 23. Errors & Omissions
  24. 24. Umbrella Liability
  25. 25. Workers Compensation <ul><li>Provides a benefit to workers who suffer work-related sickness or accidents. </li></ul>
  26. 26. Are you protected, if they are not? Sub-Contractors <ul><li>Workers Compensation </li></ul><ul><li>General Liability </li></ul><ul><li>Errors & Omissions </li></ul><ul><li>Umbrella Liability </li></ul><ul><li>Their Auto/Truck Coverage </li></ul>
  27. 27. Explore Owner-Controlled Insurance Program <ul><li>What is a Wrap-Up Program? </li></ul><ul><li>Advantages/Disadvantages </li></ul>
  28. 28. What is a Wrap-Up Program? <ul><li>Insurance program where the property owner arranges policies to insure: </li></ul><ul><ul><li>all construction, </li></ul></ul><ul><ul><li>materials, </li></ul></ul><ul><ul><li>hazards, </li></ul></ul><ul><ul><li>workers compensation, and </li></ul></ul><ul><ul><li>other building related risks. </li></ul></ul>
  29. 29. Advantages/Disadvantages <ul><li>Advantages to the contractor: </li></ul><ul><ul><li>Potential greater insurance limits than contractor could procure </li></ul></ul><ul><ul><li>Potential for contractor to work on projects that they might not otherwise be able to obtain </li></ul></ul><ul><li>Disadvantages: </li></ul><ul><ul><li>Potential gaps in insurance </li></ul></ul><ul><ul><li>Uncompensated administrative costs by the contractor </li></ul></ul><ul><ul><li>Deductions from contract value that exceed actual insurance costs </li></ul></ul>
  30. 30. There is nothing magic about insurance Just hard work and dedication to your clients. Something we have done at InSourceHelp since 1981.
  31. 31. Questions & Answers
  32. 32. Want to learn more, contact: InSourceHelp Email: [email_address] Phone: 302-256-6111 X100