Greetings!
I typically don't use this space in our newsletter to address specific insurance topics, but this month is different. Once in a while there's an issue facing the construction industry that I feel impacts our friends and clients in such a way that it bears addressing. This is one of those times.
Many expect Workers Compensation rates to increase significantly this year. The MA Workers Comp Rating and Inspection Bureau has recently applied for an average rate increase of 19.3% (click here to read the full article from the Boston Globe). According to the Insurance Journal, Commissioner Joseph Murphy will be holding a public meeting on March 30th on this request.
 Whatever rate increase is approved by the insurance commissioner will be effective September 1st, with the negotiations for the final rates continuing through most of the summer. We believe the final rate increase this year will be in excess of 10%. The rate for residential carpentry is currently 8.68. If the commissioner approves the increase of 19.3% the new rate would be $10.30. This is significant. If you have a payroll of $100,000 this will increase your cost by more than $1,500.
You might wonder, "Is it possible to avoid these rate increases?" The answer is "yes." There are some insurance programs that are available today that will guarantee your maximum rate for three years. This program is not available to all employers in MA. It is available to the best contractors that have had good experience. So long as your losses are under control and you have premium of over $5000, you may qualify. Please call us to see if this three year program to keep your Workers Comp costs under control is right for you. By making the switch today, you can avoid the increased rates, at least for the next few years. You do not need to wait until your policy comes up for renewal, you can start saving now.
Remember, Workers Comp costs are controllable, and every dollar you save in Workers Comp premium goes straight to your bottom line as profit. Call us today to see if you qualify for this program and start saving on Workers Compensation premiums.
Have a GREAT month!
Tom Messier, Vice President
Mason & Mason Insurance Agency
M&M Assurance Group, Inc.
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Benefits of Requiring Additional Insured Coverage of Subcontractors
There are several ways for contractors and subcontractors to allocate the risks of damage on job sites to subcontractors. Constructing a contract that requires subcontractors obtain insurance is one of the best risk management strategies. The subcontractor's coverage should also include the contractor or higher subcontractor as an insured party. With this option, contractors have the same rights as policy holders under Commercial General Liability policies. Both the hiring contractor and the party purchasing the policy have the same rights and coverage provisions. By requiring this coverage for subcontractors, general contractors are able to prevent paying for the expensive legal fees arising from damages on a job site.
When a subcontractor's employee is injured on the job, the subcontractor usually tries to sue the higher tier subcontractor or general contractor to cover damages. The hiring party then faces the expenses of court costs, legal fees, damages and lost salary for the injured worker. However, a hiring party that requires...
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Why Every Contractor Should Have E&O Insurance
Most contractors carry General Liability insurance policies. However, very few understand the need for additional comprehensive Errors and Omissions coverage. To protect themselves from the costly results of unintentional work errors, contractors must have E&O insurance. There are several important issues to consider about this type of coverage.
Contractors are prone to errors and omissions claims. The business risks they face on a daily basis can include unintentional damage to the insured party, impairment of property, damage to products or a wide variety of other damages. Since most courts are quick to rule against contractors in these types of claims, they are much more vulnerable to trouble. Although many individuals view this coverage as unnecessary, it is important to remember that a simple Liability policy does not offer coverage for damages due to...
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Solidify Construction Safety Best Practices
Nearly all areas on a construction job site are dangerous. To help keep workers as safe as possible on these work sites, the National Institute for Occupational Safety & Health and the Occupational Safety and Health Administration have developed several guidelines. Every construction company must show diligence in enacting best practices for construction safety and follow regulations. The following paragraphs detail some of the most important issues and their guidelines...
MORE...
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About Mason and Mason
For more than 20 years we've been committed to meeting the insurance and bonding needs of the construction industry. The success and leadership of our practice has led to strategic and proprietary relationships with insurance companies similarly committed to the industry. Our clients benefit from our insurer relationships in the form of products designed with their special needs in mind. Our access to many construction specialty insurers also assures our clients are afforded a range of options at various cost levels in order to match the level of protection for their particular needs. As important as these insurer relationships are, our true competitive edge is the people who serve our clients. We have team of construction insurance professionals who understand the complexities of the worker's compensation and general liability insurance regulatory environment as applied to the industry. We leverage this specialized knowledge and our broad risk management expertise to the benefit of our construction industry clients.
Mason and Mason Insurance
458 South Avenue
Whitman, Massachusetts 02382
T (800) 759-1452
F (781) 447-2832 |
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Risky Business - the Blog
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If you've heard about payroll deducted workers comp and have questions, give us a call! We can fill you in on the advantages (and disadvantages) of this program and see if it's right for you. That's what we're here for! :) |
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Client Spotlight
Here at Mason & Mason, we're honored that we serve some of the best people in the construction industry. But don't take our word for it... check out our Client Spotlight! It features a different client each month. You'll get to know others in the industry who have the same commitment to excellence you do, and who knows? You might just find a perfect partner!
This week's Client Spotlight features one of the Cape's award winning contractors. George Davis, Inc. is a past winner of Cape Cod's Builder of the Year, as well as the SCORE Small Business Owner of the Year award.
With 24 years of experience in the business, this company has a committment to honesty, quality and value that its customers have come to value and depend upon. Check out their website by clicking the link above.
Congratulations to George Davis, Inc... we're happy to have you as a client!
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Just a sample of their work... click the pic for the full photo gallery! |
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