Sophisticated Construction
Insurance Solutions

Yes! In addition to insurance, we specialize in construction surety bonding. We’ll work with you to assess your needs, and we’ll leverage our extensive industry expertise and relationships to help you secure the right contractor bonding program.

We can help you obtain the following types of bonds.

• Bid Bonds
• Payment Bonds
• Performance Bonds
• Subcontract Bonds
• Subdivision Bonds
• Timber Bonds
• Commercial Bonds
• License Bonds
• Permit Bonds
• Statutory Public Works Bonds (BOLI)
• Retainage Bonds
• Miscellaneous Bonds

In a typical construction project, there are a lot of moving parts, multiple interested parties, and plenty of things that could go wrong. Although the top risks can vary depending on the type of project, the location and other details, here are just a few of the many possible scenarios:

• A natural disaster could strike your construction site. For example, a storm could topple your construction equipment, or a fire could destroy a half-completed building. In addition to the loss of equipment and supplies, you could be looking at major delays and lost hours.
• Vandals or thieves could target your construction sites. Unfortunately, construction sites are an attractive target for criminals looking for metal and other items to steal. Vandalism is also a threat. Strong security can help, but it may be impossible to completely eliminate the threat.
• Your workers could experience injuries. The construction industry can be dangerous. Even with strong safety training and policies, worker injuries are possible. In addition to the workers’ compensation claims, you could be looking at reduced morale and delays, so managing claims is critical both to take care of your workers and to keep the project going smoothly.
• You could cause damage to someone else’s property or a passer-by could be injured on your worksite.
• One of your trucks could be involved in a serious motor vehicle accident.
• You could be accused of pollution or environmental damage. Regulations are changing, and watchdogs may be looking for violations. Despite your best efforts to follow regulations and avoid pollution, accidental spills and other mishaps may happen – and they can be expensive.

Managing construction risks requires a multipronged approach. The following steps are critical to any construction risk management strategy.

• Hiring. Risk management starts with hiring. Some workers are more likely to cut corners, engage in risky actions or even file fraudulent claims. Strong hiring practices can protect your company.
• Training. Safety training is essential for all workers, whether they’re new or experienced. As OSHA standards evolve, it’s important to update training.
• Planning. Strong planning can reduce the temptation to cut corners to catch up, and in turn, planning can help contractors avoid many losses.
• Policies. Policies that prioritize safety and risk management can reduce losses, as long as those policies are followed in daily operations.
• Monitoring. Watching for near misses can help construction employees manage risks before they become losses. It’s also important to monitor the weather for severe weather risks, and to monitor litigation and loss trends for emerging threats.
• Insurance. Although avoiding losses is always ideal, even construction businesses with strong risk management and safety practices can expect to see some losses. Insurance provides another layer of protection and risk transfer.

Crafting an appropriate insurance program requires careful consideration and a deep understanding of the exposures involved. On the one hand, you don’t want to pay for redundant coverage or coverage you don’t need. On the other hand, you don’t want coverage gaps to expose your company to uncovered losses and massive out-of-pocket costs.

When determining which insurance solutions are important, the following three questions are particularly important:

• What are your legal requirements? Your company will need to meet state requirements for commercial auto insurance and workers’ compensation. Under state law, contractors may also be required to maintain certain types of insurance, such as commercial general liability insurance, in addition to contractor bonding requirements. Additional coverage types may be required depending on the nature of your project. For example, you may need equipment, umbrella, or bodily injury coverage. Or, if you’re working in the vicinity of a railroad, you may need railroad protective insurance.
• What are your contractual obligations? Due to the risks involved, contracts for construction projects typically lay out specific liability and insurance obligations. It’s important to follow these requirements carefully to avoid being in breach of contract and to avoid ugly disputes should any losses arise.
• What are your exposures? It’s often prudent to maintain insurance beyond what is strictly required. For example, construction equipment is expensive to repair or replace, and damage could lead to costly project delays, so securing construction equipment insurance can be a smart precaution. A thorough assessment of your risks can help you decide which insurance products make sense for your project.

Insurance and bonding are too important to be an afterthought. A strong insurance and bonding program can help construction companies keep costs down while controlling risks and meeting legal and contractual obligations.

At Anchor, we’re dedicated to working closely with your construction business so we can help you obtain the most suitable construction insurance solutions for your needs. We’re interested in forming long-term relationships, and we’ll take time to understand your risks.

Our goal is to build long-term partnerships. When you work with Anchor, you’ll be served by professional employees who know their craft and will work diligently to provide the coverage you need to manage your risks.

We believe that candor preserves relationships, and transparency is the lynchpin of all our business dealings. We won’t beat around the bush or tell you what we think you want to hear. You can count on us to tell you how it really is.

If a loss occurs, you need to have the correct insurance in place. The construction industry has very specific exposures, and some standard coverages may not be sufficient, so we work with admitted and non-admitted carriers who also specialize in this class of business. We’re also licensed in all 50 states.