What Determines the Cost of a Surety Bond?

Nina Conner Bonds, Construction

By Sarah Licata for AssuredPartners The price of surety bonds can vary greatly, and many people are unclear of why this is. When determining premium, surety companies are looking to determine the amount of risk there is with an applicant by considering at a variety of indicating factors. Below are some key factors that may be considered when determining bond premium. Type of Surety Bond There are many different types of surety bonds and the type of bond required can vary in price. This is due to the fact that each surety bond guarantees a unique risk, and the level of risk the surety company is taking on is factored into the premium. In short, the higher the level of …

2023 Construction Conference Guide

Nina Conner Construction

By Sarah Licata for AssuredPartners With an ever-changing landscape facing the construction industry, keeping up to date by getting advice from industry experts makes navigating the challenges that come your way a little easier. Our construction and surety experts often attend conventions and other industry events to get the latest information on what is happening so that they can best serve you. Interested in possibly attending an event in 2023? Check out the list below for some options to get you started on finding the best event for you. Please Note:  Check conference websites linked below for more information and the most current schedule. The Associated General Contractors of America Convention When: March 13-16 Where: Las Vegas, NV About: “Experience …

Best Practices for Risk Management

Nina Conner Construction, Risk Management

By Gary Semmer for AssuredPartners The construction industry is facing a number of “external” challenges ranging from materials price inflation, supply chain delays, and labor shortages which translates into scheduling, productivity, and profitability issues. Although we have no control over these external factors, we can help our construction clients control the following equation: Total Cost of Risk (TCOR) Premiums + Deductibles + Risk Management Expenses/Construction Revenues= .0050% to 1.5% (acceptable range) and maintain a competitive advantage. Let’s explore the “Best Practices” of a Risk Management Program to achieve these results: See these results here>>>

News Release From OSHA & U.S. Department of Labor

Denise Gillin Construction, Risk Management

By Kyp Ross for AssuredPartners On July 14th, 2022 the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) issued a press release regarding an uptick in fatalities. The press release, titled “Alarming rise in trench-related fatalities spurs US Department of Labor to announce enhanced nationwide enforcement, additional oversight” announced that during the first half of 2022, 22 workers have been victims of deadly hazards involving a trench and/or excavation work. This number is alarmingly high, as there were a total of 15 fatalities in all of 2021. With this unfortunately high number, OSHA is evaluating the tools at their disposal to protect workers and keep safe working conditions. In additional to asking employers involved in trenching and excavating activities …

Cybersecurity and the Construction Industry

Denise Gillin Construction, News, Risk Management

Written by Sarah Licata for AssuredPartners Every industry is susceptible to cyber security risks, and the construction industry is no exception. The construction industry is largely unregulated when it comes to cybersecurity, so many companies fail to prioritize this issue. Many believe that their company doesn’t have anything a hacker could want, when in fact they hold sensitive information such as proprietary data, employee records, project designs, bid pricing, financial records, contracts, and more. In order to protect themselves, construction companies need to have safeguards in place to prevent and react to any cyber-attacks as they increasingly rely on technology. So, what steps can you take to protect your company? Click for prevention strategies>>>

What’s the Difference Between Construction Insurance and a Surety Bond?

Denise Gillin Bonds, Construction, Risk Management

By Sarah Licata for AssuredPartners Construction insurance and surety bonds both provide different types of protection on a construction project, but a common misconception is that a surety bond is another type of insurance. So, what is the difference between the two? What is Construction Insurance and How Does it Work? What is a Surety Bond and how Does it Work? Click to find out>>>

Common Construction Risks and How to Manage Them

Denise Gillin Business Insurance, Construction, Risk Management

By Sarah Licata for AssuredPartners Managing projects in the construction industry means managing risk. Every step in a project from before it has even started until after it has been completed can leave you open to potential risks. These are a few of the most common construction risks: Safety Job Site Security Project Steps you can take to mitigate potential loss>>>

Construction Delays and Limiting Policy Language Impact Policyholders’ Recovery

Denise Gillin Construction, Risk Management

By Maureen Gallagher for AssuredPartners Many property policies contain contractual limitation provisions. These policy provisions are valid and enforceable in most states. The provision limiting the amount of time policyholders have to complete the work paid for by their insurance company to one year is particularly problematic. When policy provisions like this exist, if the repair or replacement has not been completed within the time frame, the carrier only pays actual cash value (ACV). This is a fairly common provision. It should be noted that Ordinance and Law Increased Cost of Construction provision also has a time limitation to repair or replace, or there is no coverage for the increased cost of construction. Standard ISO language is two years, and other …

Challenges the Construction Industry is Facing in 2022

Denise Gillin Construction, News

By Blaine Allen for AssuredPartners The construction industry is one of the largest sectors in the US economy. Nearly $1.4T worth of structures are constructed each year and it employs more than seven million workers across 733,000 businesses. As 2022 kicks off, many of these construction industry professionals will be wondering what issues & challenges we will face in the next 12 months. While the PPP funds in 2020 and 2021 were life savers to many businesses, we are unlikely to see similar measures in the future. Things are slowly getting back to normal, but that doesn’t mean there still aren’t challenges to the industry in 2022. Some issues described below are unique to the construction industry, and others are …

Not Your Average Bond

Denise Gillin Bonds, Risk Management

By Lynne W. Cook for AssuredPartners Ironically, there are thousands of surety bonds, but most people are unfamiliar with this three-party agreement that is designed to guarantee a principal’s (the #1 party, which is likely you or your business) integrity, honesty, performance, and financial responsibility, as well as compliance with a law or contract. So, who are the other two parties involved in this three-party agreement and what is it that requires I get a bond? Here are a few of the more common situations that use commercial surety bonds to lessen the risk of loss to the obligee (the #2 party, who is requiring the bond) by the third-party guarantor (the # 3 party, which is a corporate surety …