Chapter 4: Risk Management for Contractors and Small Construction Businesses
It's important to realize that adequate insurance protection is only one part of an effective risk management plan. The better part of your risk management plan should include techniques that help prevent loss events — and insurance claims — before they happen.
Why? Because insurance works best when it's viewed as a safety net. If all your other precautions fail, your insurance will catch you — but it's not safe to rely on it as Plan A. That's because every time you file a claim, your insurance premiums may rise. Relatedly, lawsuits and the like don't just cost money — they cost your business time. And insurance can't protect you from that.
This chapter focuses on risk management techniques for construction and contracting professionals. First, we take a look at some of the ways you can keep your insurance rates low. Then we give you some pointers on hiring subcontractors and creating a safe work environment. Lastly, we explore the necessity of keeping your insurance coverage in place — even if you have a stellar risk mitigation plan.
Next: Part 1: Risk Management Tips That Keep Insurance Rates Low
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