In the contracting world, it literally takes sweat—and sometimes blood and tears—to build up a business. And given the nature of their work, contractors are at risk for losses that could potentially devastate their business.

Top causes of financial loss for contractors include fires, workplace accidents, equipment theft and construction defects, which can cost businesses millions and even billions every year.

Grange Insurance helps its agents successfully manage their clients’ risks. Use some of our tips below to help your contractor clients protect their businesses from potential pitfalls.

1) Don’t get burned. Help clients mitigate their risk of fire by encouraging them to:

• Lay oil- or solvent-soaked rags out in the open to dry, or store them in an air-tight, fire-resistant container.
• Carefully dispose of matches and cigarette butts.
• Make sure electrical work is performed by a licensed and reputable electrical contractor.
• Have fire extinguishers available and in working order.
• Create a custom fire emergency and evacuation plan.

2) Play it safe. Encourage your clients to proactively make their worksite safer by:

• Conducting regular site walk-throughs and regular safety meetings.
• Keeping worksites clean and free from debris and other hazards.
• Using the right personal protective equipment for the job.
• Ensuring guardrails are in place.
• Inspecting equipment for damage before use. 
• Escorting any non-employee guests visiting the job site. 

3) Lock out loss. Help clients protect their assets from theft or vandalism by reminding them to:

• Lock down all equipment and tools, building materials such as copper and vehicles when not in use.
• Keep careful records of their equipment and label or mark equipment as well.
• Put up fences around the job site.
• Use theft deterrents such as wheel and ignition locks and fuel shut offs.
• Consider investing in security cameras or security guards.   

4) Cover your bases. Help your clients protect themselves from liability and loss by:

• Signing a legal contract that spells out what work is included—and what isn’t—before starting a new job.
• Hiring only licensed, certified, well-trained subcontractors, and making sure each subcontractor understands their scope of work.
• Legally transferring risk to subcontractors when possible.

Grange Insurance is here to help you recognize and prevent risks. Partnering with Grange Risk Management Consulting gives your client road signs for their business—identifying risks before they impact the bottom line, or your agency’s errors & omissions exposure.

The road ahead is often uncertain, but you can be certain you’ve made it safer for your clients when you partner with Grange.