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8 Tips for Preventing Losses as a Contractor

Contractor insurance

As a contractor, your business model is different from other commercial enterprises. You’re often on the road and most of your time is spent on site, not in a physical office location. As such, your approach to loss prevention revolves around the specific way that you run your operations.

Here are our top 8 tips for preventing losses (and the need to make an insurance claim) in your contracting business…

1- Your tools and equipment are often the lifeblood of your business. Protect them! Whenever they are not in use, they should be locked away. When you are on site, you need to have a secure storage area for your tools. While top quality lock boxes can be expensive, they are well worth the investment!

2- For any pieces of equipment that you would consider to be particularly valuable or high target, they should be kept in a building, or only brought and kept on-site when needed.

3- Stamp all your tools with an ID number to help with recovery in the event they do go missing or are stolen. You can also paint your tools in a bright colour or use other markings to make them uniquely yours and again make them easier to identify.

4- If your work involves some temporary encroachment onto public land, take the steps to ensure safety. For example, if you have electrical cords running on sidewalks or other pedestrian areas, make sure they are secured so that no one would trip over them. If what you’re doing results in mud or water on the road, clean up regularly so as not to adversely affect traffic.

5- Are you doing any excavation or underground work? Before you do any digging, contact the local utilities so that you know exactly what is where, preventing any accidental damage to water works or other underground services.

6- Things heating up on site? All flammable materials must be stored in approved safety containers. And if you’re doing any hot work (defined as any activity that would create heat, sparks, flames or smoke, such as welding for example), make sure that all combustibles are at least 11 meters away. Combustible garbage should be dealt with promptly and any oily rags kicking around should be store away in metal containers with tight fitting lids. Finally, make sure there is always a fire extinguisher on hand.

7- Bringing subcontractors on board for your project? Get their certificates of liability to be sure they have proper coverage while working for you.

8- And finally, make sure that you’re working in a legit fashion. Follow all codes, standards and permit directives. Keep a record of all important documentation related to your project, such as plans, permits, and any official documents related to your work, such as tests completed or any approvals obtained.

 

Want more advice and recommendations? Click here for more commercial insurance and business protection tips.

Have some questions about your business insurance? Want to learn more about insurance specific to working as a contractor? Click here to get a quote or zip over here to contact us directly and chat about your particular needs.

 

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