Jobsite accidents can happen any time. No matter how much safety training you provide, occasionally something goes wrong. Sometimes these malfunctions only affect equipment, such as a power shortage in a drill or a jammed forklift. However, in the worst situations, employees can get injured. In either case, construction business owners and general contractors need to be prepared for such an event.
Enter Contractor Controlled Insurance Programs (CCIP).
A CCIP is what’s known as a “wrap-up policy,” meaning that all participants in a project are covered under one insurance policy. This type of insurance covers business owners, contractors, subcontractors, skilled laborers and other employees, both permanent and temporary. When a high-cost accident occurs, CCIP coverage can lighten the financial burden; however, this type of coverage does come with a few risks. Owners and general contractors must take a close look at their business as a whole before deciding if a CCIP policy is the right fit.
- CCIP plans could cover a single project or all qualifying projects. The second option is known as a “rolling” basis.
- CCIP coverage typically provides general liability and worker’s compensation for everyone on a project. Think of it like a giant umbrella keeping the rain off the staff working on your building project.
- Feel out your options. At a minimum, CCIP covers liability, but these plans can also include occurrence coverage and bodily injury, along with equipment and property damage.
- CCIP coverage is typically cheaper than purchasing individual policies.
- CCIP plans can cover all subcontractors equally, even if they already have their own policies.
- Because of the flexible procedures involved with a CCIP, owners can save around 40 percent on insurance costs.
- Having your own insurance policy is a plus to potential clients. This can increase your competitiveness and, subsequently, your profits.
- Since there is only one policy to consider, CCIP claims are significantly streamlined.
- CCIP plans show that your company considers safety a priority.
- CCIP ensures subcontractors are properly covered and helps them avoid insurance rate increases.
- CCIP plans usually have a higher deductible – up to $500,000 in some cases.
- Owners must keep a sufficient number of projects under the “rolling policy.”
- Only covers incidents that occur during the construction building process; though some policies do include a period of time after the project is complete. Most commonly, however, if equipment fails after the project is complete, it may not qualify for coverage.
Not every construction business owner can benefit from a CCIP. This type of policy is perfect for ones with a solid foundation in safety and an appetite for financial risk aversion. If you’re considering a CCIP, take a good, long look at how you currently do business and implement any additional policies to maximize your CCIP potential.
- Develop a safety culture that permeates the job site and all workers associated with a project.
- Implement pre-qualification screening for all subcontractors.
- Maintain a constant rotation of jobs and projects from an established client base.
When partnering with a staffing agency, it’s imperative to find one who understands the risks and regulations associated with the construction industry. Since CCS Construction Staffing is focused solely on construction, we understand the hoops you jump through on every project. We can help you make the next choice in your hiring process, and even provide you with safety-conscious workers in as little as eight hours. Call us today and one of our experienced recruiters will help you build a solid construction job force.