Insurance Needs for a Masonry Small Business

With a booming economy comes a booming construction industry. One essential part of the construction industry is enough masonry companies to fill the needs of builders. Masonry contractors install and repair brick, block, stone, veneer and other masonry items onto and inside of buildings or structures. Their work may include fencing or retaining walls, outside signs and other related structures. The masonry industry consists of more than 41,000 businesses in the United States. The industry generates $23 billion in revenue each year and employs more than 147,500 people. Masons practice a craft that has been handed down for centuries and takes years of careful study working with a master craftsman.

As a small-business owner (or even a person considering starting a small business), your mind is more than likely spinning over all the types of insurance you have to choose from. It is important to not take this part of running a business lightly. Each type of insurance covers a different risk your business may or may not face. Here is some information about the risks Masons face and the types of insurance coverage a business within this industry should consider.

Unique Risks within the Masonry Industry

Masons work with heavy materials which elevates the risk of bodily injury. Working in the Masonry Industry requires bending frequently bending and lifting heavy objects. This can cause excessive wear and tear on the body. Wearing a back brace and lifting with the knees instead of the back should be a common part of any businesses protocol. Implementing a safety program and including the workers in the development and implementation of the program is the best way to create a company culture focused on safety.

Masons rely on their chisels, mallets, and metal straightedges to perform their work. If those tools are lost, damaged, or stolen the mason is not able to do their work. Depending upon how expensive or how specialized these tools are, an inland marine insurance policy may be needed to help replace the tools quickly in the event of damage or theft.

Recommended Insurance for Masons

General Liability Insurance
Inland Marine Coverage
Property Insurance
Hired and Non-Owned Auto (full commercial auto if vehicles owned)
Workers Compensation

General Liability Insurance

General Liability Insurance is required by law for most masonry businesses. Contractors will need it to enter into most contracts. General Liability protects masons from common property damage and bodily injury claims. It is important to remember that it is not all-encompassing. There are exclusions in every policy and it is important to discuss with your independent insurance agent what additional coverages your business may need.

Inland Marine Coverage

Inland Marine Insurance is designed for businesses that have specialized equipment and tools that are frequently in transit away from the businesses location. It can also cover equipment that is stored at a third party location. If your business has a trailer you use to haul necessary equipment or if you store equipment off-site, this coverage may be necessary to adequately protect the business.

Property Insurance

Commercial Property Insurance is needed whether you own or lease the property your business is located. It will cover the structure of the business and some additional equipment like cabinets, and desks. There are exclusions to each policy. Take an additional few minutes before purchasing to understand exactly within your business is and is not covered by a commercial property insurance policy.

Hired and Non-Owned Auto

Hired and Non-Owned Auto Insurance is a type of commercial auto insurance for businesses that have employees drive their personal vehicles for business purposes or leased vehicles. If your employees are driving as a result of work and they cause an accident, the business is responsible for the damages to third parties. This can be extremely costly if it is not properly covered.

Workers Compensation

Workers Compensation Insurance is required by law for most businesses in most states. Some states have exclusions depending upon the industry, the number of employees, or the revenue of a business. Even if a business is allowed to not carry coverage, it is usually in the best interest of the business to still carry some form of coverage. Even if the business has one employee who is the owner, there is a ghost policy that is offered at a much lower rate that can meet the requirements for most contracts.

Additional Coverages Masonry Businesses Should consider:

General Liability
Inland Marine Coverage
Commercial Auto
Business Income with Extra Expense
Umbrella

Masonry Contractors and Construction

SIC Business Insurance Codes:

1741: Masonry, Stone Setting and Other Stone work

NAICS Liability Classifications:

238140: Masonry Contractors
327310: Cement Manufacturers

Business ISO General Liability:

97447: Mason Contractors

NCCI Class Codes:

5022: Mason Contractors and Masonry Construction
5222: Concrete Construction—Bridges and Culverts

Workers Comp Codes Determine What You Pay for Insurance Premium

Workers Compensation Classification Codes are a three or four digit code describing what each individual employee does on a daily basis. The codes are either created by the National Council on Compensation Insurance (NCCI) or a specific state rating bureau. NCCI partners with more than 30 states to recommend pure premium rates for Workers Comp Codes throughout the state workers compensation system. The code of each employee is one of the strongest determining factors when it comes to what a insurance carrier charges the business for workers compensation insurance premium. Here are five tips to make sure your business is doing everything possible to control what the business pays for workers compensation insurance.

Small Business Meeting discussing employee Workers Comp Codes.

Create In-depth Job Descriptions

Job descriptions are important when it comes to purchasing all types of commercial insurance, especially workers compensation coverage. The workers comp codes of employees determine what the business pays for work comp coverage. Some employees participate in more dangerous activities than others. Because of these activities, your business must pay more for workers comp coverage for the employees who participate in more dangerous activities. If you have many types of employees who engage in many different types of business activities it is very important to have in-depth job descriptions for your employees. Having all employees classified properly and having well-written job descriptions can save your business a lot of headaches in relation to your commercial insurance policies.

Sure up your operations

Each employees class code is based on the employees operations. The class code will be determined based on your client’s operations, work environment, job description, etc. The more dialed in you have your business, the easier it is to control claims and secure additional discounts when renewing insurance. Many carriers will offer discounts for things like safety programs, return to work programs, defensive driving courses, owning new equipment, and implementing an ergonomically friendly work space. If you have some or all of these aspects of your business and it is documented, you can usually secure a discount on commercial insurance.

Expect Rates to Fluctuate

Rates for commercial insurance vary from state to state and industry to industry. It is important to expect the rates to fluctuate from year to year. There are many aspects that go in to what a business pays for premium that include the workers comp code of the employees, the experience modification rating of the business, the amount of payroll of the business, and the claims history of the business. If one of these aspects changes, it can have a positive or negative impact on what a carrier charges for insurance.

Know Incorrect Workers Comp Codes Can Cost More

Placing the wrong Workers Compensation Classification Code on an employee or a number of employees can drastically impact what your business pays for premium. These discrepancies usually are found during the end of term audit. Mistakes can result in either a credit or debit to your policy. These discrepancies can happen when you have employees who work in multiple departments. Working with your Accounting Department or an outside Payroll Company can be a good way to ensure accurate classification and payroll numbers.

Communicate with your Carrier

Like most things in business, communication is key to success. It is important to communicate with both your agent and your carrier when things change about your business. If you purchase a new piece of equipment or you are taking on a new type of work, it is important to speak with your agent and carrier about these changes. It may mean the difference between a claim being denied or a carrier sending you a non-renewal.

Tag: ncci class codes

Masonry