Insurance Protection

Builders and Contractors – Four Tips to Control Insurance Costs

Insurance costs for builders and contractors are on the rise. While it is helpful to understand the why, more important is understanding what you can do to help suppress these cost increases. Here are a few things that builders and contractors can do to help put them in a more favorable pricing position:

  • Complete a full loss control assessment of your safety practices. Do you have a formal safety program? A safety manual? When was the last time they were updated?  Do you have daily “toolbox talks” or other sharing sessions?  What about safety training? Are your employees OSHA 10 or OSHA 30 certified?

When a builder or contractor considers their culture, engaging in a disciplined approach to safety needs to be a top priority with buy-in coming from the very top of the organization. A well-developed, documented, and executed safety program will result in fewer injuries, fewer claims, and, in turn, decreased insurance expenses. 

  • Work with your insurance broker to determine if you qualify and are utilizing all credits available to you on your worker’s compensation policy. Most states offer credits if you pay your employees more than the average wage or if you have a workplace safety committee that meets the state’s requirements.
  • Builders and contractors should protect themselves with a strong subcontractor agreement that is reviewed by their legal counsel annually. By utilizing a well-crafted subcontractor agreement, you are doing your part to ensure that your policy will not have to pay claims on behalf of the negligent party. These risk transfer agreements will make your risk more attractive to potential insurers.
  • Create a unique recruiting and training program. Good people are hard to find and even harder to train and develop. Contact your local vocational and/or technical schools and volunteer to mentor or intern students. Volunteer to be a guest speaker and get them involved in your business. Creating a pipeline of new talent and supporting them with a detailed training program will create a well-trained and safety-focused workforce.

The market outlook for insurance pricing is still volatile.  Supply chain issues continue to plague the construction industry with inflation and rising interest rates adding an additional layer of complexity.  Aggregate renewal rates will likely continue to increase in the 5-15% range, but you can minimize the impact through a strong safety culture, reduced claims, and tight risk transfer agreements. If you’re interested in discussing how your business can cut insurance costs, get in touch with one of our business risk consultants at 800-220-3077 or

Insurance products offered through Univest Insurance, Inc. are obligations of the issuing insurance companies, not obligations or deposits of or guaranteed by any bank and are not insured by the FDIC or any other agency of the United States.