Minimizing Risks as a New Contractor

Starting your own business in the construction industry as a contractor is an exciting endeavor. It comes with limitless possibilities and allows skilled trade contractors to make a living doing what they love.

However, the construction industry comes with inherent risks that just aren’t found in other industries. Because of this, it’s important to understand ways to minimize these risks.

Understand and Follow Regulations

Various state and federal regulations are in place for contractors. They are there for a reason: to protect contractors, their employees and their customers. While some regulations may seem cumbersome and inconvenient, it’s important that you take the time to understand them and put proper safety procedures into practice.

Not sure where to start? Check out the Construction website of the Labor Department’s Occupational Safety & Health Administration (OSHA) . With information ranging from fall protection and prevention of crane accidents to chemical exposure safety techniques, OSHA offers guidelines and training to ensure compliance. All contractors should be familiar with these guidelines.

Stay Educated

Just like other industries, the construction industry is always changing. A smart contractor is a contractor who makes every effort to stay educated on everything from shifting consumer trends to new and updated tools and building techniques.

This is another way to minimize risk. Your employees and subcontractors depend on a safe working environment. By learning new tools and tips of the trade, you’ll stay ahead of the curve.

It’s also critical that you save for these changes. Leave room in your operating budget for new and updated equipment that works efficiently while offering the highest levels of protection available. This pertains not only to actual safety equipment, but to tools and materials as well.

Be Sure Your Business is Covered

Unlike other businesses that require basic, standard insurance, contractors have specific insurance needs. Because of the risks faced by contractors and those they employ, finding this insurance can be difficult. In fact, many insurance companies restrict this coverage and make the process more of a challenge than it needs to be.

At times like this, it’s crucial that contractors work with insurance agencies that understand their specific needs and offer products and policies that fulfill those needs. Those involved in the construction industry (from concrete contractor to home builders) need first-class insurance, from workers’ compensation to increased liability options, that provides the protection necessary for those times when complying with regulations and keeping up with current trends just isn’t sufficient.

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