How the Construction Labor Shortage Affects Your Insurance

March 18, 2020 News

Insights from Builder’s Risk Insurance Providers

The construction industry involves difficult and often dangerous work. As any established builders risk insurance providers will tell you, there are plenty of opportunities for accidents to occur. For example, a nail gun falling off a roof can hit someone on the ground, causing injury. Another possibility is when an inexperienced employee picks up a rotary saw for the first time and cuts themselves. These may seem like unlikely events, but the reality is that we are facing a labor shortage in the construction industry and that means many inexperienced laborers could be filling these positions. This may mean that your project is delayed.

Before you seek your next big building project, talk with experienced builders risk insurance providers to obtain the right coverage for your needs. Our knowledgeable brokers sit down with you and discuss your unique challenges and requirements as a general or sub-contractor. We are here to help find any gaps and get you coverage at reasonable rates.

How Today’s Labor Shortage Affects Your Future Projects

According to a news article on Fox Business, the United States is facing a construction worker shortage. Across the country, contractors like you struggle to find qualified individuals for both hourly and craft positions. The article mentions this is “one of the single most significant threats to the industry.” Here is how this can affect you and your future projects:

  1. Inexperienced workers. It does not matter if the new employee is 16 or 45, if they have never picked up an impact drill, then they are at a higher risk of injuring themselves or others. Their lack of familiarity can cause a delay in your project timeline, among other issues.
  2. Staff turnover. You probably have that one employee that has been with you through thick and thin. Yet, you’ve also had your fair share of revolving-door employees that come and go quickly, leaving your head spinning. This can leave your job site without proper staffing and a lack of oversight.

In both cases, the human factor of your next job may put you in a precarious situation. Having the best coverage available to protect yourself from theft and weather is only one step. Often you may be called upon to provide a builder’s risk insurance policy. If so, then you should understand that poor workmanship from your inexperienced team is not covered.  You can avoid this by training your team.

How to Bring Your Crew Up-to-Speed Quickly

Take the steps necessary to prepare your crew for the next job by providing proper training. Be sure they have the tools they need, such as gloves, hard hats, and safety glasses. Take time to instruct everyone on how to use power tools properly. Then, repeat the process regularly so that everyone can stay safe. For the unfortunate incident that may still occur, make sure you have builders risk insurance providers covering your business.

Mitigate Risk with Help from the Business Insurance Center

Protect your company and your livelihood by properly training your staff and obtaining adequate coverage from the brokers at the Business Insurance Center. Talk with us about all of your insurance needs, including general liability, builder’s risk, and worker’s compensation. We work with a wide range of industries and understand the nuances of the construction arena.

Request a quote online or call and speak with a knowledgeable and experienced broker at the Business Insurance Center. We have a 24/7 call center to serve you and an online Live Chat operator available to walk you through a range of policies and programs offered by builders risk insurance providers. 

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