Loss prevention tips for contractors

The best loss-prevention strategy in any business is planning. By thoroughly planning a job, contractors can minimize the risk to their employees, their property and their customers. First ensure that the project complies with all applicable codes and standards and obtain certificates of liability from all sub-contractors to ensure they are maintaining adequate liability coverage. Finally maintain records of all jobs including plans, testing documents and approvals.

Our Insurance Brokers have decades of experience insuring contractors, their tools and their jobsites Based on this experience, here are some tips on preventing loss in your business.

Protect your tools

Keep all tools and equipment in a locked area at all times when not in use.

Stamp all tools with an identification number to assist in recovery. You can also paint them with bright, easily recognizable colours to make them easier to identify.

Keep any on-site materials in a secure storage area. Where the materials are considered a high target, keep them inside a building in a locked area or brought to the site only when they are needed.

Protect your employees

Post warning signs limiting access and indicating the safety equipment required to gain entry.

Contact local utilities to locate underground services before excavating.

Store all flammable liquids in approved safety containers.

Remove any combustibles at least 36 ft. (11 m) away from hotwork. If this is not possible, use non-combustible shields. Provide a fire watch for at least a half-hour after the hotwork is completed and follow all hotwork permit regulations.

Ensure that combustible refuse created during the work is cleaned up regularly. Oily rags should be separated and stored in metal containers with tight fitting lids.

Fire extinguishers of the appropriate type should be available at all times.

Contact the staff at our local office for more risk management tips.