“All in Together”: Construction Safety Week 2026 Kicks Off May 4

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

May 4-8 is Construction Safety Week. The annual event is designed to improve industry safety culture through increased awareness and access to resources.

This year’s theme is “All in Together,” with a focus on three pillars: Recognize, Respond, and Respect all with the goal of preventing serious injuries and fatalities on high energy, high hazard job sites.

Recognize

The first step in addressing serious risks is identification. The Construction Safety Research Alliance finds construction workers identify only 45% of the hazards they face during typical planning briefings. Increasing recognition of high energy and high hazard activities can improve ability to respond quickly to a dangerous situation, and ultimately prevent serious injuries or death.

Respond

Once hazards have been identified, the next step is to respond. That means putting direct controls in place before any work begins. When planning turns into prevention, teams are able to eliminate, substitute, or engineer out serious risks.

Respect

Respecting job site hazards means taking seriously all potential risks to health and safety. Taking the time to plan and implement direct controls, and adapting to changes as they arise builds and strengthens a safety culture that lasts.

Digital safety resources are available for organizations participating in Construction Safety Week.

A Planning Playbook is available for download and includes information on how to organize events and communicate goals with leadership and employees. Sample agendas, social media resources, and daily toolbox talks are available throughout the week.

Toolbox talks and safety observations are also available through Rancho Mesa’s SafetyOne™ platform.

Building a Scalable Safety Program with SafetyOne™ for Landscape Professionals

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

Rancho Mesa provides our clients the key components for building the infrastructure of a modern-day safety program through the SafetyOne™ Platform.  By fundamentally layering your safety program through SafetyOne™, you will build a system that can keep up with your growth, measure your goals, and keep your organization engaged.  

In a report from Travelers Insurance Company titled, “2025 Travelers Injury Impact Report,” they noted within the last 5 years, more than a third of all injuries stemmed from an employee’s first year on the job.

Establishing an effective safety program can help prevent new-hire injuries. Avid SafetyOne users saw a 27% decrease in claim frequency over a 3-year period by implementing effective onboarding of their safety program, performing ongoing safety activities and maintain compliance:

Onboarding

The ability of an organization to effectively hire and train new employees is critical to maintaining a safe workplace. Safety onboarding ensures that site, equipment, and tool hazards, along with policies, processes, and emergency response protocols, are clearly communicated and understood to meet core safety expectations.

Ongoing

Manage your safety program on a regular basis with near miss reporting, job hazard analysis, tailgate training and more. By accessing your mobile forms and observations within SafetyOne, you are able to manage your team’s ongoing efforts to stay engaged.

Compliance

Pulling reports can be critical to evaluating the program you established and an efficient way to gather critical information when you need it quickly. This allows you to monitor the standards that are in place to help prevent injuries, ensure expectations are clear and change behaviors which ultimately impacts risk predictability.     

Build a safety program that works for you today that has the ability to adapt, grow and change with you. Talk to your broker or client technology team to learn more about a SafetyOne-based safety program.

Representing Independent Agents in Washington: Key Legislative Takeaways from the Big “I” Conference

Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.

On April 22-24, I had the opportunity to attend the Big “I” Legislative Conference in Washington, D.C. The Big “I” is the national organization affiliated with IIABCal and IIAB San Diego. It represents and supports independent insurance agencies at the federal level and maintains a strong presence in Washington, advocating tirelessly on behalf of independent agents and our carrier partners.

Each year, IIAB San Diego sends the President‑Elect to its national conference. This year, I attended as the President-Elect, alongside IIABCal and leaders from other local California chapters. During the conference, we received detailed briefings on key legislative issues and bills that the Big “I” is actively supporting. In addition, we were asked to engage directly with our representatives to help build awareness and support for legislation that impacts our industry and, ultimately, our clients.

Our California delegation met with representatives and staff from each of our respective districts on Capitol Hill to discuss these bills and explain their real world impact on the insurance marketplace. Below is a summary of the legislation we covered.

Legal Reform

Rising litigation costs are directly increasing insurance premiums and limiting market availability. The rapid growth of third‑party litigation funding (TPLF), particularly by foreign entities, lacks transparency and benefits from unfair tax treatment.

We urge support for:

• The Tackling Predatory Litigation Funding Act (H.R.3512 / S.1821) to ensure litigation funders pay fair tax rates and close foreign tax loopholes.

• The Protecting Our Courts from Foreign Manipulation Act (H.R.2675 / S.3180) to require disclosure of litigation funding arrangements and prevent foreign exploitation of U.S. courts.

Disaster Mitigation

Increasingly severe natural disasters are disrupting insurance markets, driving premiums higher, and increasing reliance on federal disaster aid. Proactive mitigation reduces losses and long‑term costs.

We encourage Congress to:

• Advance the Fix Our Forests Act (H.R.471 / S.1462) to reduce wildfire risks through improved forest management and infrastructure hardening.

• Support the Disaster Mitigation and Tax Parity Act of 2025 (H.R.1849 / S.336) so homeowners are not taxed on mitigation grants.

• Pass the Fixing Emergency Management for Americans Act (H.R.4669) to modernize FEMA and streamline disaster response.

Flood Insurance

The National Flood Insurance Program (NFIP) remains essential for homeowners and businesses in high‑risk areas. Repeated short‑term extensions have created uncertainty and left consumers vulnerable.

We urge Congress to:

• Reauthorize the NFIP on a long‑term basis.

• Support the Continuous Coverage for Flood Insurance Act (H.R.6620), allowing consumers to move between private flood insurance and NFIP policies without penalty.

• Protect the Write‑Your‑Own program and avoid proposals that weaken or eliminate NFIP.

Terrorism Risk Insurance

The Terrorism Risk Insurance Act (TRIA) provides a proven, cost‑effective federal backstop that allows insurers to offer terrorism coverage for an inherently unpredictable risk.

We strongly support a clean, long‑term extension of TRIA to maintain market stability, protect taxpayers, and ensure coverage availability, especially ahead of major national and international events.

Health Care

Employer‑sponsored health insurance remains the backbone of America’s health care system. Stability, transparency, and affordability are critical.

We encourage Congress to:

• Protect the tax exclusion for employer‑provided health insurance.

• Pass the Patients Deserve Price Tags Act (H.R.5582 / S.2355) to require clear, standardized disclosure of actual health care prices.

• Support expanded access to telehealth and reduced administrative costs.

Please reach out to me at jhoolihan@ranchomesa.co or (619) 973-0174 if you have questions about our efforts in Washington.

Construction Risk Management in Action: Century Painting Making Safety A Priority

Author, Kevin Howard, Partner, Rancho Mesa Insurance Services, Inc.

StudioOne™’s Episode 603 was packed with safety knowledge as I had the opportunity to interview and spotlight Rancho Mesa’s long time client, Century Painting Corp.

In this episode, I had the pleasure of interviewing Brian Escalera and Eddie Lopez with a main focus on safety, work family, and project pride.

Brian is the son of the founders, Rosa and Arturo Escalera. His insight into what it took to build Century Painting is invaluable. In our discussion, Brian dove into some projects that he is personally proud of and also expressed the importance of high level synergy that sparks innovation daily in the Century Painting office.

Eddie Lopez is their full-time safety director who lives, breathes and teaches safety daily. Eddie was Rancho Mesa’s first ever Safety Star™ recipient and he proudly earned the certification in 2017.

In our discussion, Eddie talked about the transition in teaching safety topics he has witnessed as they are consumed by the newer generation. Hands-on over written-word seems to really drive it home. He also reminisced on projects that are visible from the freeway, standing as quality finished work performed by Century Painting.

This podcast interview intertwined a great conversation regarding safety, the topic of work families becoming real families, and the challenges faced in the world of construction safety.

If you enjoy what you hear, please share this episode and subscribe.

Well‑Being at Work: Observing Mental Health Awareness Month

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Since 1949, May has been recognized as Mental Health Awareness Month. It is a time to raise awareness on mental health and share resources within your organization.

According to the Centers for Disease Control and Prevention, over 50% of the people in the United States will be diagnosed with a mental illness at some point in their lives. And, the World Health Organization (WHO) reports conditions like anxiety and depression lead to a trillion dollars of lost productivity worldwide, every year.

Both employers and employees benefit when mental health is addressed in the workplace, and when proper resources are available to support staff members. In fact, the WHO also found that for every $1 invested into treatment for depression and anxiety, there is a return of $4 in improved health and ability to work.

Mental Health resources are available in the RM365 HRAdvantage™ portal, including law breakdowns detailing what kind of mental health coverage employers are required to offer, Q&As that cover common questions about employee mental health, and guides outlining ways to support employees’ mental health.

Some of the ways our HR experts recommend employers provide support to their employees include:

• Providing time for employees to slow down and rest

• Offering paid time off, mental health benefits, and flexible schedules

• Offering an Employee Assistance Program (EAP)

• Making accommodations when possible

• Creating spaces for non-work related connection

• Promoting good mental and physical health in the workplace

For assistance accessing these resources, contact your client technology team. Rancho Mesa clients can also submit HR questions to a live expert through the HR portal.

New State Overview Screen in the RM365 HRAdvantage™ Portal

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Staying in compliance with state laws is key to an organization’s success. Rancho Mesa’s RM365 HRAdvantage™ portal is making compliance easier for business owners and HR managers through the new State Overview screen.

Accessing the State Overview Screen

The State Overview screen can be found under the HR Compliance tab.

Hover over the “HR Compliance” in the navigation bar and click on “State Overviews.”

You will then see an interactive map of the United States. On the left side of the screen, you can switch between a Map and a List view.

Select the state you want to view an overview of.

State Overview

Select a state from the map or list to view the overview.

The overview includes:

• State minimum wage rates and laws

• Key laws specific to the state you have selected

• Toolkits for hiring, recruiting, and termination

• Recent law alerts and updates

• List of all state-specific laws available in the portal library

For questions about accessing State Overviews or other HR portal resources, contact your client technology team member.

Building Protection Through Strong Subcontract Agreements

Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.

As insurance requirements become increasingly stringent across California’s construction industry, specialty contractors are facing more scrutiny from both general contractors and insurance carriers. It has become standard practice for prime contractors, and sometimes project owners, to require specialty contractors to sign detailed subcontractor agreements outlining scope, pricing, claims procedures, termination rights, indemnification, and strict insurance requirements.

The bigger concern is what happens after those agreements are signed. Specifically, how little due diligence is applied when specialty contractors hire their own lower‑tier subcontractors. From an insurance and risk perspective, this gap creates serious exposures.

As a non‑prime contractor, your ability to control a jobsite is limited. You typically do not control the master schedule, access to the site, or coordination among trades. Yet when you hire a secondary subcontractor, you become responsible for their performance, their timing, and their compliance. If a lower‑tier subcontractor fails to show up when scheduled, causes delays or creates safety issues, the responsibility does not always land with them, it very often can stay with you.

One of the most common misconceptions among specialty contractors is that collecting a certificate of insurance is enough. If your subcontractor does not carry adequate limits or allows coverage to lapse mid-project, the liability ultimately falls back on you. The same potential issue can occur if they are improperly classified for workers’ compensation. From an insurance carrier’s standpoint, you hired that subcontractor; if their coverage is insufficient, or disappears, you are absorbing that exposure.

This directly impacts:

• General liability and workers’ compensation claims

• General liability and workers’ compensation payroll audits

• Experience modification factors

• Renewal pricing and carrier appetite

In many cases, if you cannot provide proof of compliant insurance for your subcontractors, your company may end up paying the premium for their payroll, even though they were not your employees.

Most specialty contractors are acutely aware that if they fail to meet a prime contractor’s subcontract requirements, consequences can be severe. This may mean payment withheld or back charges, to liability being pushed downstream or contracts terminated. Yet that same level of diligence is often not applied when engaging lower‑tier subcontractors. This double standard leaves specialty contractors squeezed in the middle where they are held to strict contractual and insurance requirements upstream, while remaining fully exposed downstream.

Whether you use subcontractors occasionally or on a regular basis, having a strong subcontractor agreement is no longer optional, it is a key business protection tool.

A strong agreement helps:

• Clearly define scope and responsibility

• Enforce insurance and indemnity requirements

• Protect against uninsured claims

• Prevent premium leakage during audits

• Reduce disputes with both carriers and prime contractors

Most importantly, it helps ensure that risk is allocated fairly and intentionally, rather than by default when something goes wrong.

In today’s California construction market, insurance carriers are paying close attention to how risk is managed at every level of a project. Specialty contractors who lack strong subcontractor agreements put themselves at risk of uncovered claims, higher premiums, and long‑term insurability issues. Working with an insurance broker who specializes in your trade, alongside a qualified construction attorney, can help ensure your subcontractor agreements align with your insurance program and business objectives.

If you have questions about subcontractor agreements, insurance requirements, or how these issues may be affecting your premiums and renewals, feel free to reach out to me at (619) 438‑6900 or ccraig@ranchomesa.com.

Underbillings and How They are Viewed by the Surety

Surety Group Leader Andy Roberts sat down with Marc Henry, Region Vice President for Sompo International and Damian Pintor, underwriter in the Western Region for Sompo International. They shared valuable insight about underbillings in the construction industry and discussed how surety companies handle them.

Andy Roberts: You’re listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive.  I’m your host, Andy Roberts, and I’m joined by Marc Henry, Regional Vice President for Sompo International and Damian Pintor, who’s an underwriter in the Western Region for Sompo International.  Welcome to the show, guys.

Marc Henry: Thank you.

Damian Pintor: Thank you. Thanks for having us. Yeah, glad to be here.

AR: Yeah, thanks for making the trip down. This is going to be a lot of fun. We're going to be diving into an important topic here kind of regarding underbillings and how they're viewed by you guys on the underwriting side. But before we get into that, why don't you guys give me a little background on what you guys do, how you got into the industry?

MH: So my name is Marc Henry, and I am the Western Regional Vice President of the Sampo Contract Surety in the western part of the United States. So I oversee all of the operations west of the Mississippi, and that includes seven regional offices. And one of the best things about my role is I get to work with a really talented and exceptional group of people that are committed to working with our producer partners and the success of our contractor clients.

AR: Yeah, that's great.

DP: Yeah, my name is Damian Pintor. I've been with Sampo now for four years, straight out of college. And I kind of stumbled into the industry just as straight out of Cal State Fullerton, majored in risk management and insurance, looking to go into insurance underwriting, came across this thing called surety. And then from there, I kind of figured to fit my strengths a little more and kind of went down that rabbit hole of getting into surety and bonding itself and no looking back for me.

AR: Yeah, I feel like that's one thing whenever you know I hear about your background is I’m a little jealous of that you found it right out of college it took me eight years of working in insurance to realize the surety opportunity is going to be way better and such a much more fun industry that I feel suits myself as well too. So yeah that's great so let's jump into kind of what we're going to discuss here and so you know from a basic standpoint, like what are underbillings? That's what we're going to kind of dive into here. If one of you guys want to just give us a basic rundown of what that looks like or what those are.

MH: Sure, I'll jump in there. So basically what underbillings are is it's the difference between the work that a contractor has completed and what they have billed for. So essentially it's like a contractor saying, I have completed so much work, but I've yet to bill for that work. So that underbilling then sits on the balance sheet as an asset representing money that the contractor is going to receive in the future.

DP: Hopefully.

MH: Hopefully. It's a great point. That's what we're here to talk about. I didn't want to get too far into it, but that's a great point. Absolutely.

AR: That's the thing I think they look at it too is like most people that don't really understand it look at it as just like it's on their current asset. It helps their working capital. But like within relation to working capital, like what do you guys, how do you guys dive into it more deeply?

DP: Yeah. And I think when it comes to in relation to working capital, I mean, first of all, it's going to be shown, it's not going to say underbilling, right? It's going to show as cost in excess of billings. And that's going to be classified under the current asset section on your balance sheet, but also on your work in progress report as well. So I think that's important to know. And so when it comes to looking at it that way, I mean, the way we analyze it, you know, we'll typically take note of those larger underbillings that may be present on their WIP reports and at the beginning stages of those project.

I think it's important to at least make note of you know what large ones outstanding and then track those as you know you get future statements and WIP reports too really analyze you know how that billing process is going and I think for us where we really start to analyze and make adjustments is going to be for those late stage underbillings. And when I say late stage that's going to be projects that are in your back half of completion. So that'll be 80 to 85 percent complete or more. When we start to see those underbillings still on there that's typically when we'll start to ask the questions we'll request updates or what's going on there because for us looking at it when you have those underbillings at the beginning stages I think that's completely normal.

But then once you start to get on to the later stages, eventually you start to see that even out and catch up. So when you get into that back part, usually there's a story there, and I think for us, that's important to understand. But when you get to those points, that's when we'll typically make those adjustments depending on the notes we get. Or just looking at the numbers because we're only looking at the numbers, we understand there's a whole story to what's going out there actually in the field.

AR: Yeah. So at that point too, so you guys are kind of looking at it and as you're tracking those and you're seeing those late stage ones, that's when they kind of become a concern in your guys' eyes.

DP: Right.

AR: But so when you're having that conversation and getting that story with the contractor, like what would their reply be that would be to distinguish between a healthy underbilling versus like something that's problematic in your eyes with regard to those late stage underbillings?

MH: So it's all about context, right? Because at the core, an underbilling is an asset like we just talked about, but it's not a celebrated one, right? It's not one that we would love to see the makeup of your working capital, but it's how quickly can that underbilling be converted to billings and then be collected and then be converted to cash? And cash flow is really the name of the game.

So when you're saying when is an underbilling sort of healthy or manageable and when is it not? Kind of what Damian said, when you're seeing underbilling sort of pile up and grow as the job progresses, that's where, you know, as a surety, we should be working with you guys and having that communication, that dialogue as to what's going on. What's the context behind this? And not just jump to conclusions because it could be sometimes there's certain contractors or certain trades. They have large, upfront costs that they incur that they're not able to bill for sometimes until they're actually on the job or for however their contract is structured so when that happens they do show up as an under billing but if you understand that that underbilling is good and it's going to be converted over very quickly you're able to kind of say okay I can I see that I understand that we don't have to discount or analyze that. But it's when you get into the late stage of the job, like what Damian said, when a job is almost completed, the job should be almost billed.

AR: Absolutely.

MH: The billing should match the work. And so when you don't have that, then it's like, okay, what do we have here? Is this a billing process issue? Is this a lack of communication internally? Is this a problem between the contractor and their client?

And again, it just all comes down to communication and asking those questions and understanding what's going on behind that.

AR: Do you guys have something you hear most frequently from contractors like what they're reasoning behind or is it just kind of run the table based on different circumstances?

Like when you come to them they might go, “Well we're just behind on billing,” or, “The owner--we're on like the back side of a billing cycle from the owner we missed like a cut-off date,” or something?

MH: I feel like a lot of times most of the time, I feel like what we see is change orders. It's waiting for change orders to be approved, and they're following up on the approval process, but they expect them to be approved. Those kinds of updates of keeping us into the loop, I think, are very valuable to us because it gives us some insight onto why that may be. I mean, there's some added work in there that is expected to be approved, and it's not going to affect their profit margin.

Or there's even approved change orders that we're getting an update on after the fact because I think it's also important to remember that when we get these WIP reports and um and financial statements there's already two to three months that have gone by and you know there's most likely already updates that that are available for us to get. So if there's approved change orders that's I mean that's great I mean then we can mark it as like all right well it's addressed it'll be billed and they should be able to collect down the line.

AR: That all that all makes a lot of sense um what happens in a situation say you get with a contractor and they're like. “Oh well this is an internal issue we're way behind on our billings.”

You know, it's like, does that affect in your guys’ mind, like bonding capacity? Because there's like now there's like some sort of management issue maybe or processes issue?

MH: So, yeah, sometimes it is a personnel issue. I mean, you know, at the end of the day, these companies are run by people and, you know, life happens. Right. And so we've had situations where the person that's responsible for billing is out, you know, medical leaves, things like that. So. There's legitimate reasons as to why they fall behind.

But I think the contractors who make it a priority, make the billing a priority, and really take a proactive approach in staying on top of that help to avoid running into those issues. Sometimes it's converting software. They're changing from different softwares, and there's issues that way. And again, I'm trying to provide you where these are legitimate reasons where it's, you know, from a surety standpoint we can hear that we can understand that and we know that there's not an issue out in the field, there's not an issue bigger than, you know, what's going on internally because again one thing to just to kind of come back to on the underbilling is because that contractor has performed work and they have yet to bill for it essentially who's funding that job now, right? It's the contractor's money funding that job and when you have that, back to what you were saying earlier, Andy, it starts to squeeze their working capital. And I think that creates, from a surety standpoint, greater risk exposure.

AR: Yeah, well, now we're looking at more of a liquidity issue.

MH: Exactly.

DP: And I think going back to Marc's point, like underbillings themselves, they're not generally like a bad thing. At the end of the day, they're an asset. They’re a current asset looked at that way on the balance sheet. But the other side of that is when you as a contractor are heavily reliant upon those underbillings for the makeup of your working capital and your net worth then on the surety and bonding capacity side then we're heavily reliant upon the updates we're getting regarding any late stage underbillings and, you know, the quicker you can turn that into you know being able to bill and collect I mean we can't ask questions on cash right cash is cash.

AR: Get a bank statement.

DP: Yeah, exactly. Yeah. So we're not going to ask questions there. So I think that's just an important thing to know. And, you know, it could affect your liquidity overall. So, yeah, I mean, I think I think it's important to take that in consideration that, you know, they're not a bad thing, but if not addressed appropriately, you know, it could lead to a problem.

AR: Yeah. Well, I think you said it's not a bad thing, but, you know, it's a marker or something to pay attention to that. Could be a sign of how things are trending or what's going on. Like if it's a consistent thing, that's going to affect their, you know, liquidity down the road and then ultimately their bonding capacity.

MH: Exactly.

AR: How deep of a dive do you guys do, you know, your initial underwriting when you're looking at, you know, a new submission and, you know, you're tracking all these stuff. Like, does that go into your mind right away of like what kind of capacity you guys could maybe offer? Or is it, you know, are you guys looking to go to the agent with a lot of questions about underbuildings right away, to kind of figure out what the issue is up front?

DP: Yeah, and I think there's a difference too when we're talking about new submission versus long-time existing account. With the new submission, we're getting a few periods, a few years’ worth of financial data you know job schedules so we're able to properly trend um those jobs individually and the underbillings individually so we can look at the earliest statement that we have and some of those jobs and what those underbillings look like and then how they progressed.

So, I think when it comes to that um you know that plays a that plays a factor into how we look at it because if you if you see that the project margin has hold that has held across you know like two three four years of data depending on how long the project is then you know that goes to show you that historically this contractor does a good job of managing their billings, being able to bill and collect so I think I think that certainly helps and I think that's the deep dive that we typically take.

It’s different when you're jumping into a new relationship but at the same time you have you know a strong relationship with your agent that you can trust so I think you know that's the deep dive that we take. And there's a whole other side of you know if it's an existing relationship then you have a long-term understanding of that contractor's history.

MH: Exactly I was, and that's what I was going to add to that is that when it's an existing relationship there's a trend, there's a historical pattern, there's questions that we've asked in meetings so if that contractor is historically showing underbillings but those underbillings do get billed out. We have a track record we can look at and we can hang our hat on our decisions, knowing that they don't typically have issues with their underbillings not being billed and collected.

AR: Right. Absolutely.

MH: Whereas with a new submission, you're getting to know that account. So it's, you know, yes, you can look at the financial information, but it definitely it all comes down to communication. And it's the communication that we have with good producer partners like yourself. But it's also the open communication that we have with the contractors too. And just being able to ask those questions is, “Okay, tell me about this underbilling. You know, why are you essentially funding this job based on what we're seeing? And you've been carrying this for a while and it's starting to grow. Walk me through this and when you're going to get collected,” because, you know, it's important to us, but let me tell you, it's important that contractors too, because it's immediately hitting their cash flow.

AR: Yeah, absolutely. Just something kind of off the top of my head. In a situation where it's like, you know, there's maybe a dispute on the job near the end and the contractor comes to you and says, “Well, I think I'm in the right here. I think I'm going to collect this. I'm going to get this back from the city or the entity.”

Like, do you take them on their word? Do you look for any documentation from them or anything along those lines that help ease it? Or do we take that out until we know it's going to get realized for sure?

MH: That's a good question. I think what we try to do is obviously we want to hear a contractor story and we do want to take them for their word. But, you know, usually disputes and things like that, there's a there's a time frame that's going to have to play out. So even if they're right, that money is not going to be something that's coming in the door tomorrow.

So we have to apply some type of something to our analysis as to, okay, how are we going to treat this? Because this is not something that's going to be converted to cash tomorrow. So we may apply some kind of discount. But what the best tools that we have as a surety is kind of what Damian mentioned is the job schedules, the WIP report, being able to produce that timely. And quickly and accurately helps us kind of gives us an indication of that, you know, the contractor's health, being able to see those underbillings and what's going on there.

But also documentation. Hey, this was a change order that was approved, but now there's some kind of dispute on it. Like any kind of documentation like that helps. And I think the more documentation that we can get helps us make a much more informed decision. And it's better for the contractor because then we can choose, we’re making an adjustment to our analysis that is a little more accurate than based on just an amount we see on the web. And we just, if we have no communication, then we're left to just say, okay, we just got to discount this whole thing. We don't know when they're going to collect this.

AR: Yeah. No, I guess that probably leads into the next question too, of like what separates. It's a good contractor who manages their underbillings well versus those who might struggle, like documentation, financials. Is there anything else you guys can think of off the top of your head?

DP: Yeah. So, I mean, going back to the change orders thing, I think documentation of approved change orders, you know, that certainly helps. And then documenting whether or not that long-standing relationship, you know, because when it's when it's long-standing relationship it certainly helps and we know that the contractor is good for their word. When it's a new submission and we're getting to know them then that's completely different I think that documentation of things you mentioned along with the change orders I mean those things definitely help us to get to understand them and their billing process their internal systems which is another key part for us and just overall, you know, get the full picture.

MH: Yeah. I'll add to that, too. I think, like Damian said, it's understanding the systems. And that's why when we, you know, typically most sureties will ask what type of accounting systems and cost tracking and, you know, project management software do you use? Because if you, you know, if you have good systems and good policies and good people in place and you make it a priority to stay on top of your billings. Companies I feel that do that, they usually tend to manage the underbilling process much better.

And again, I don't want to leave here today with the thought process of underbillings are bad because they're not. To the question you just asked, there are times where they're healthy, they're manageable, and there's a lot of sense behind why or good reasoning as to why this underbilling is here. But it is an asset where you've got to be on top of it and making sure that this thing is eventually going to convert and convert as quickly as possible to boostering cash and working capital.

AR: Yeah, it's kind of like you said earlier, too. Like, you know, different trades have, you know, some trades might have more underbillings upfront.

MH: Exactly.

AR: And there's just understanding, like, kind of what's going on there. And that's going to be the case going forward, but they're going to convert it. You know that's going to happen. Any final advice you guys could give to contractors? I know we kind of talked about some of the management stuff, about what they can do to prevent underbillings from becoming an issue with regards to their bonding?

DP: Yeah. I mean, I think from a contractor standpoint, I think it's easy to see or easy to get lost in exactly what the surety is asking of you, especially financially or what they're looking at or their analysis or, you know, whether they set goals to reach a certain financial milestone or, you know, get to a certain point.

But overall, just working back and utilizing, you know, your agent. I mean, Rancho Mesa, you guys do a great job of just, you know, being able to provide that context to not only your surety, but translate exactly what the surety is looking forward to your contractor clients. So I'd say utilizing your agent because they have a plethora of resources that you guys can utilize as a contractor of just being able to be in the loop and what surety exactly is going to look for when analyzing your balance sheet and get you to the program and get the bonding credit that you want. So I think just getting an understanding of that and utilizing your resources is important.

AR: Fantastic.

MH: When I first told my daughter I was doing a podcast and when she found out it was about underbuilding, her excitement sort of left her face. But I think she would have been much more happier if this was about dating and relationships. But I'm going to kind of tie it back together a little bit here.

You know, surety is a relationship, right? And it's a lot more relationship-driven than, I would say, a lot of the other insurance product lines. So to really help in this process, it's really about communication because communication is kind of the foundation of any relationship. So it's having that open and transparent communication, being proactive.

And for contractors, you know, we don't have direct relationships with our accounts, but it's when you have a good surety professional like Rancho Mesa, you guys are very good at being proactive asking those questions you say see the WIP reports before we do and I like how you look at those and you'll see those underbillings and you're asking those questions before we even get that and that's important because we're saving time and we're getting to the core of what's going on, like what's the root of that? Is it something that we all need to be concerned about? Or is it one of those situations where, “Hey you know what it's a part of their normal course of operations it's not something that we need to be very concerned about.”

So I think it's having that transparency, meeting with your clients, having a good surety professional as your intermediary that's working between the surety and the contractor. Those are things that really help to make the process and make working through underbillings really work well.

AR: Yeah, that all sounds great.

Marc, Damian, just want to say thank you both so very much for taking the time to join me today here in StudioOne.

DP: Well, thanks, Andy. Hopefully we didn't say underbillings too many times.

MH: Yeah, really appreciate you, you know, giving us this opportunity. Thanks a lot.

AH: Yeah, this was wonderful. So thanks for tuning in to our latest episode produced by StudioOne. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at ranchomesa.com and subscribe to our weekly newsletter.

Managing and Preventing Workplace Violence Involving Non‑Employees

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

When employers seek to address workplace violence, trainings are often centered around preventing violent acts from occurring in an office environment. But, serious occurrences of workplace violence can also happen outside of an office setting.

Utility or maintenance workers performing jobs late at night, social service workers dealing with patients experiencing mental health crises, or construction workers staffed in high-crime areas are some examples of employees who may be vulnerable to violence by non-employees.

These types of incidents are often recordable under the Occupational Health and Safety Administration (OSHA) guidelines. Section 1904.5(b)(6) of OSHA's recordkeeping regulation states injuries and illnesses are recordable if they occur while the employee was taking part in activities "in the interest of the employer."

If an employee is traveling to and from a jobsite, performing work on a jobsite, or dealing with clients, vendors, or outside contractors when the violence occurs, the incident will likely be OSHA recordable.

Precautionary actions can be taken in order to keep employees safe and reduce the likelihood of a violent incident. OSHA recommends employers establish a zero-tolerance policy. The policy should, “cover all workers, patients, clients, visitors, contractors, and anyone else who may come in contact with employees.”

No matter how you choose to incorporate a workplace violence prevention program into your company policies, training and clear communication are key for proper implementation. OSHA advises employers to “ensure that all workers know the policy; are trained on prevention methods, signs for potential violent behavior, and how to effectively react when an incident occurs; and understand that all claims of workplace violence will be investigated and remedied promptly.”

Workplace violence prevention training can be found in both Rancho Mesa’s SafetyOne™ Platform and RM365 HRAdvantage™ portal.

Other workplace violence prevention resources can also be found on the OSHA website, including specific guidance for health and human services workers.

Discussing The Hidden Levers Behind Lower Insurance Premiums with Drew Garcia and Bill Arman

During a recent interview at NALP’s ELEVATE Conference, RMI Landscape Vice President Drew Garcia joined Bill Arman from The Harvest Group to discuss how landscape companies can take greater control of their insurance outcomes. The conversation dove into practical ways businesses can reduce risk, tighten operations, and make everyday decisions that lead to stronger coverage and more favorable premiums. Fewer incidents in the field, better processes, and a proactive mindset can make a measurable difference.

For business owners focused on protecting margins and building stronger companies, this discussion offered valuable insight, proving that better insurance results are within reach.

Understanding Payment Fraud: Common Risks and Tools to Protect Your Business

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Payment fraud is a threat to businesses of all sizes and can have a significant impact on a company’s bottom line.

Protecting your business from payment fraud is increasingly important, as scamming tactics continue to adapt to new technology. The Association for Financial Professionals (AFP) reports 79% of organizations included in their annual payments fraud survey reported have been victims of payments fraud attacks or attempts in 2024.

The same survey found that 63% of respondents reported their organization faced check fraud, making it the most common fraudulent payment method in 2024.

Wire transfers were reported as the payment type most vulnerable to business email compromise (BEC). ‍

According to the AFP, BEC scams like phishing attacks commonly include impersonation of a senior executive, vendors or a third-party. These scams use falsified identity to attempt to gain access to sensitive information including passwords, bank information, or credit card numbers. ‍

Effective fraud protection strategies can help insulate your business from these risks, and starts with proper training for employees. When employees know how to spot BEC scam tactics, they are less likely to share sensitive information and put the organization at risk.

Cybersecurity Awareness trainings are available through Rancho Mesa’s RM365 HRAdvantage™ portal. Participants will be taught how security breaches can occur and how to limit these risks.

Join us on Friday, May 1, 2026 from 9:00 am – 9:30 am for the Safeguarding Your Business: Fraud Protection & Smart Payment Strategies webinar.

Essential Steps Non-Profit Leaders Should Take in the Pre-Renewal Process

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

Non-profit organizations and their leadership often rely heavily on their insurance agent’s experience and insight, gained from working with similar organizations, when considering insurance buying options and risk management throughout the year.

Rancho Mesa strongly recommends holding pre-renewal strategy meetings to discuss, at minimum, the following items.

Claims History by Line of Coverage

Non-profits have diverse insurance coverage often spanning everything from cyber liability to employment practices liability to volunteer accident policies. A thorough review of the last 12 months of claims activity will shed light on future pricing as well as claim trends. This conversation should lead the agent to ask what resources can best support leadership, but also broach the topic of new or infrequently used tools the non-profit should consider employing.

Operational Changes that Affect Risk

We consistently ask clients at the pre-renewal strategy meeting whether any operational or programmatic changes have taken place or will be considered in the next year. Non-profit leaders face a changing landscape pertaining to funding, employee retention, and insurance affordability. While funding for a new program or service is often pursued and shared with the agent, the tougher subject of terminating a longstanding program is becoming more common. Non-profit leaders may assume coverage is no longer needed, which is a great time to educate clients on how to insure future claims for incidents that took place in the past.

Coverage Review: Limits, Exclusions, Gaps

Non-profit leaders are excellent at their jobs, but they should not have to be excellent at insurance. A review of the limits of liability can help policyholders understand how coverage is layered and which layers add the most cost. Affordability is now a very real concern. This subject should also promote a discussion about limits and deductibles required by contract versus an anxious board member wanting the highest limits available. Neither approach is incorrect and both warrant discussion. This is also the best time to remind Non-profit leaders of the insurance they do not currently have in the insurance program.

Risk Management and Underwriting Narrative

Knowing risks, such as affordable housing, foster family agencies, and youth programs, are more difficult to place at affordable levels and helping an underwriter understand all programs and the exposure to risk, is now critical to a positive underwriting outcome. Sharing that a high risk program has been terminated can also help an insurance company accurately assess the risk.

The review of recent claims should allow the insured to share steps taken to prevent similar claims from happening. If the claims record is positive, this helps the underwriter understand the internal steps taken to improve their risk profile. The bottom line is applications do not tell the whole story. A well-developed narrative initiates more control over the process.

Renewal Strategy

The agent and non-profit should discuss whether the relationship with the current insurance company or companies is working well. If the goal is to maintain carrier longevity at a competitive premium, then discuss how to best achieve this result in a timeline that works for all parties. Also important, schedule a time to discuss the marketing process at least 30 days prior to the effective date. Perhaps the target premium is not achievable with the current carrier, but an alternative deductible strategy or competing carrier can hit the mark. It is best for everyone to feel informed and comfortable if circumstances change.

Working with a non-profit specialist agent to schedule a pre-renewal strategy meeting is step one in protecting the organization’s mission and future. The five items above should facilitate healthy discussion and help to answer questions and concerns.

For more information about your renewal process, please contact me  at (619) 937-0175 or sbrown@ranchomesa.com.

April is National Distracted Driving Awareness Month

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

April is National Distracted Driving Awareness Month, and a good reminder to reevaluate your company’s driver safety policies and enforcement.

The National Highway and Traffic Safety Administration (NHTSA) leads the yearly effort to minimize distracted driving, and the dangers that come from failing to pay attention to the road.

In 2023, the NHTSA reported 3,275 deaths caused by distracted driving, including using a mobile phone, eating or drinking, changing the radio station, or talking to passengers.

An increased law enforcement presence will be out on roadways from April 10 through 14 as part of the national Put the Phone Away or Pay campaign.

Rancho Mesa has resources available for companies looking to train new drivers or remind company drivers of safe practices.

Driver-specific toolbox talks and online driver training are available through the SafetyOne™ platform that can be used to company drivers. And, for employers whose employees drive company vehicles daily or weekly, Rancho Mesa offers a weekly Driver Safety Toolbox Talk subscription, where each week, subscribers will receive an email containing one of Rancho Mesa’s 52 driver-specific toolbox talks in both English and Spanish.

Register to attend our Fleet Safety workshop, hosted at the Rancho Mesa office on April 24, 2026.

Fleet Maintenance: An Overlooked Pillar of Jobsite Safety for Electrical Contractors

Author, Kyle Dunlap, Account Executive, Rancho Mesa Insurance Services, Inc.

Fleet maintenance is essential for electrical contractors that rely on service trucks, vans, and heavy-duty vehicles to transport employees, tools, and materials safely to job sites on a daily basis. When contractors prioritize clean, safe, and well-maintained vehicles on highways, back roads, and active construction zones, they protect their workforce, prevent costly mishaps, maximize fuel consumption and reduce insurance challenges at renewal.

In the construction industry, fleet maintenance is a direct extension of jobsite safety.

Electricians frequently operate vehicles loaded with tools, ladders, wire spools, and heavy equipment. Worn brakes, underinflated tires, malfunctioning lights, or unsecured cargo can lead to serious incidents before a worker ever steps onto a jobsite. Because these vehicles often travel long distances, navigate uneven terrain, and operate in high-traffic or work-zone environments, mechanical reliability is critical.

A vehicle-related incident can result in employee injuries, OSHA scrutiny, project delays, and third-party liability claims. For electrical contractors, a preventable accident caused by poor maintenance can be just as damaging as an on-site safety violation impacting both worker morale and company credibility.

Electrical contractors should implement formal fleet maintenance programs that include routine inspections, preventive servicing, and documented repair schedules. Pre-trip inspections and clear reporting procedures ensure issues are addressed before vehicles reach the road.

Clean and organized fleet vehicles help reduce risk and support safe operations in the field.

Service vehicles often become mobile workshops. When interiors become cluttered with loose tools, materials, or debris, drivers face increased distraction and the risk of shifting cargo. Dirty windshields, mirrors, and backup cameras further reduce visibility, especially critical when maneuvering in tight jobsite conditions or backing near workers and pedestrians.

Vehicle condition reflects a company’s overall safety culture. Insurance carriers and general contractors often view poorly maintained or unclean vehicles as indicators of broader risk management issues. Additionally, clean, well-kept vehicles project professionalism to clients, inspectors, and the public.

Establish standards for vehicle cleanliness, secure storage systems for tools and materials, and regular housekeeping requirements. Driver safety trainings, QR code-accessible vehicle inspections and fleet  management assessments offered in Rancho Mesa’s proprietary SafetyOne™ mobile app can help reinforce expectations and reduce preventable losses tied to vehicle condition.

“When the misuse of tools becomes routine, it sends the wrong message that shortcuts are acceptable and risk is secondary. Maintain a culture where precision and safety comes first.” Rear Admiral Dan “Dino” Martin USN Commander, Naval Safety Command.

Preventable vehicle mishaps can significantly affect insurance premiums and renewal terms for contractors.

Insurers closely analyze fleet loss history when underwriting, accidents involving brake failure, tire blowouts, poor visibility, or unsecured loads are often classified as preventable losses. Even minor incidents such as backing into fences or poles or roadside breakdowns can accumulate and negatively impact loss ratios.

A pattern or frequency of maintenance-related claims may result in higher premiums, increased deductibles, coverage restrictions, or additional underwriting requirements. In a tightening insurance market, contractors with poor fleet performance may face limited carrier options.

Proactive maintenance, documented inspections, driver accountability, and corrective action plans demonstrate to insurers that fleet risks are actively managed. Risk management partners like Rancho Mesa can assist electrical contractors by reviewing fleet losses, identifying trends, and helping prepare for successful insurance renewals.

For electrical contractors, fleet maintenance is not optional, it is a critical investment in employee safety, operational efficiency, and long-term insurability. Clean, well-maintained vehicles help prevent avoidable losses and position contractors as responsible, safety-driven organizations.

To learn about how Rancho Mesa can help streamline your fleet maintenance program, contact me at (619)798-2822 or kdunlap@ranchomesa.com.

A Letter from RMI President to California Clients: Take Action On CT Claims Legislation

Rancho Mesa would like to provide you with an update on our efforts related to the growing cumulative trauma issue impacting the California workers’ compensation marketplace. As many of you have experienced firsthand, cumulative trauma claims continue to rise and are having a significant, negative effect on premiums and experience modification rates (EMRs) across all industries.

Over the past year, we’ve worked to better understand the root causes of this problem. We’ve hosted podcasts with industry experts and recently held a Cumulative Trauma workshop with a leading workers’ compensation carrier. From these conversations, one conclusion is clear, meaningful reform is needed.

To help advance that discussion, I’ve written letters to both the State Senator and Assembly Member who chair the committees responsible for potential legislative changes. While major action is unlikely during an election cycle, it’s important that our representatives understand the real-world impact this issue is having on California businesses.

Our intent is not to limit legitimate cumulative trauma claims, but rather to establish sensible guardrails that help prevent the growing abuse of the system. I’m attaching drafts of the letters I’ve submitted on behalf of Rancho Mesa. If you are inclined to join this effort, please feel free to use or modify them as you see fit.

Your voice matters, and collective engagement is often what drives meaningful change.

I hope you will consider joining me in supporting this much-needed reform.

‍ ‍

David J. Garcia
President, Rancho Mesa Insurance Services Inc.

Send Letters to the Following

Senator Lola Smallwood-Cuevas
senator.smallwood-cuevas@senate.ca.gov

Assembly Member Lisa Calderon
assemblymember.calderon@assembly.ca.gov

New RM365 HRAdvantage™ Law Comparison Tool

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

A new tool has been added to Rancho Mesa’s RM365 HRAdvantage™ portal for businesses that operate in multiple states.

The new Law Comparison Tool simplifies multi-state compliance, allowing users to compare employment laws across multiple U.S. states and identify legal differences.

Users of the HR portal can now:

• Compare laws from up to 10 states and 4 law categories

• Sort by specific law categories or subcategories

• Export results in Word or Excel

How to Use the Law Comparison Tool

The Law Comparison Tool can be found under the “HR Tools” dropdown menu in the Navigation bar in the HR portal.

Using either the interactive map or the filters on the right-hand side of the page, select up to 10 states and up to four law categories, then click the “Compare” button.

The page will generate a list of corresponding laws in each state you have selected. Use the check box next to each law to select up to 10. Some laws will be state-wide, while others are specific to a city or county.

The portal will display your selected laws side-by-side for easy comparison. Click the “Email Comparison Download” button to generate a Word document or Excel spreadsheet comparison.

Contact your client technology team with any questions about accessing the HR Portal or Law Comparison Tool.

2026 Legal Updates Reshaping California’s Private Construction Sector

Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.

California’s private construction industry has entered 2026 with two major legal changes that will significantly impact how contractors and subcontractors manage cash flow, negotiate contracts, and process change order work. Beginning January 1, 2026, California Senate Bill 61 Private works of improvement: retention payments (SB 61) and Senate Bill 440 Private Works Change Order Fair Payment Act (SB 440) took effect, reshaping longstanding practices around retention and change order payments. These laws apply only to new private works contracts signed on or after that date, leaving existing agreements untouched.

These updates aim to correct chronic pain points for contractors who have long shouldered the financial burden of excessive retention and slow moving change order approvals.

A New Era for Retention: SB 61 Sets a 5% Cap

For decades, retention practices in California’s private works sector varied widely, with some upstream parties imposing retention rates higher than those seen in public projects. SB 61 changes that landscape by capping retention at 5%, aligning private contracting with the standards already established for public works.

This shift is intended to create more predictable cash flow throughout the contracting chain. Contractors and subcontractors may need to revise their contract templates and ensure that the new cap flows consistently through all tiers of subcontracts. The responsibility now falls on every party to verify that contract language mirrors the law, preventing scenarios where a subcontractor is held to a higher retention percentage simply because an outdated template was used.

The statute also carries financial consequences for disputes where a prevailing party seeking to enforce the retention cap may recover reasonable attorney’s fees.

There are, however, some exceptions to the new law. Purely residential projects of four stories or fewer are excluded unless it is part of a mixed use development. Additionally, if a higher tier contractor gives written notice before bidding that payment and performance bonds are required and the subcontractor chooses not to furnish them the retention cap does not apply.

SB 440: Bringing Fairness and Timeliness to Change Order Payments

Equally impactful is SB 440, which tackles one of the industry’s most persistent friction points, the slow approval and payment of extra work. Many contractors have grown accustomed to performing additional work promptly while waiting weeks or months for owners to process and compensate approved change orders.

SB 440 introduces firm deadlines designed to eliminate that delay. Once a contractor or subcontractor submits a change order claim via registered or certified mail, the project owner has 30 days to issue a written response identifying approved and disputed items. Any undisputed portion must be paid within 60 days of that response.

Failure to respond triggers a powerful remedy where the contractor or subcontractor may have the right to suspend work without penalty.

The intent behind SB 440 is straightforward accelerate reviews, encourage timely resolution of disagreements, reduce the financial strain created by float funding extra work, and ultimately keep projects on schedule. By establishing clear accountability, the law aims to ensure that contractors are no longer forced to operate as involuntary lenders on privately funded construction projects.

January 1st, 2026 and Beyond

Owners, contractors, and subcontractors should update their internal processes to comply with SB 41 and SB 61. Contract language, administrative workflows, and change order procedures should be reviewed to ensure they align with the new requirements. Subcontractors, in particular, should make it routine practice to obtain and review the prime contract to verify proper flow down provisions for both retention and change order rules. Understanding these new laws and adjusting practices accordingly will help protect your margins, avoid disputes, and ensure compliance as the industry transitions into this new regulatory landscape.

Rancho Mesa is happy to assist with any questions you may have regarding SB 41 and SB 61. Please direct your questions to me at jhill@ranchomesa.com or (619) 798-2819.

National Ladder Safety Month 2026

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

March is National Ladder Safety Month, and 2026 marks a decade of the American Ladder Institute’s (ALI) efforts to increase awareness and education in the workplace.

The areas of focus that the ALI has chosen for 2026 include:

• Training and Awareness

• Inspection and Maintenance

• Stabilization, Setup, and Accessories

• Safe Climbing and Positioning

ALI and National Ladder Safety Month sponsors are hosting weekly free webinars discussing basic safety principles and common causes of ladder injuries on the jobsite.

Ladder and fall safety violations are some of the most common causes of Occupational Safety and Health Administration (OSHA) citations year after year. To prevent citations and injuries on the job, employers should prioritize safe ladder use practices, and proper education.

A list of ways to promote ladder safety is available on the National Ladder Safety Month website, from simple actions like contributing to the conversation on social media using #laddersafetymonth, to more in-depth efforts like encouraging employees to earn Ladder Safety Certificates.

Rancho Mesa also has ladder safety resources available for clients through our SafetyOne™ platform, including:

• Ladder Safety online training

• Ladder Safety Toolbox Talks

• Ladder observation form to document inspections

For help accessing Rancho Mesa’s ladder safety resources, contact your client technology team member.

Protecting Your Bottom Line: The Critical Role of Excess/Umbrella Liability Coverage for Contractors

Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.

The construction industry operates in one of the highest‑risk environments. Contractors work with heavy machinery, multiple layers of subcontractors, hazardous jobsites, strict contractual obligations, and constant exposure to the public. These conditions create significant exposure to large liability claims. And, although general liability, auto liability, and employers’ liability insurance make up the foundation of a contractor’s risk management program, these primary policies often do not provide enough protection when a major incident occurs.

Excess and umbrella liability coverage plays a critical role by adding a financial safety net that protects construction companies from catastrophic losses. This additional coverage ensures that one significant claim does not jeopardize the entire business’ financial health.

Construction claims can escalate quickly, and the industry routinely deals with high‑hazard operations like trenching, scaffolding, welding, and heavy equipment. When something goes wrong, the consequences can be severe. Claims involving multi‑party lawsuits, public accidents near the jobsite, structural failures, or damage to neighboring properties often exceed the limits of standard liability policies. Judgments, often referred to as nuclear verdicts, in the tens of millions of dollars have become increasingly common. Without adequate excess or umbrella liability insurance, a single large‑scale accident can financially devastate a contractor.

The industry also depends heavily on financial stability to keep projects moving forward. A major loss can disrupt working capital, delay active jobs, hinder bonding capacity, and interrupt cash flow, all of which are essential elements of a construction company’s balance sheet. Excess and umbrella coverage helps protect these critical financial elements. Ultimately, this coverage ensures that a significant claim does not derail a company’s long‑term stability.

Contractors rely on excess and umbrella insurance as project owners, municipalities, and general contractors are increasingly requiring higher liability limits. Many construction contracts now call for total limits of five million dollars, ten million dollars, or more, depending on the project’s size and complexity. Having an excess or umbrella policy makes it easier for contractors to meet these requirements, bid confidently on larger and more profitable projects, and demonstrate reliability during contract negotiations. Without the appropriate limits, a contractor may be eliminated from consideration before a project even begins.

Excess and umbrella liability insurance is also one of the most cost‑effective ways for construction companies to increase their protection. Rather than raising limits on individual primary policies which can be expensive, these policies offer an affordable way to secure millions of dollars in additional coverage. Because they are designed to respond to major, unexpected events rather than routine claims, they provide a high-level of value relative to their cost. For many contractors, this makes them one of the smartest risk management investments available.

Construction companies face some of the most complex and severe liability risks. While primary insurance policies address routine exposures, excess and umbrella liability coverage is what protects contractors from catastrophic events that could undermine financial stability, damage their reputation, or threaten long‑term viability. For contractors of all sizes, this type of coverage should be strongly considered as an essential safeguard and one that not only protects the business but also supports contract compliance, enhances competitiveness, and ensures longevity in a high‑risk industry.

Feel free to reach out to me at (619) 937‑0174 or jhoolihan@ranchomesa.com to discuss excess and umbrella coverage.

Census of Fatal Occupational Injuries Summary, 2024

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The Bureau of Labor Statistics (BLS) has released the collected data from the Census of Fatal Occupational Injuries Summary for 2024.

This survey collects the total number of fatal work injuries recorded in the United States in 2024 as well as worker characteristics, type of event or exposure and occupation data.

According to the BLS, 5,070 fatal work injuries occurred in the United States in 2024. This total is down 4% from 2023.

Key Findings

A 16.2% decrease in fatalities due to exposure to harmful substances or environments was a driving factor in the overall drop in fatal injury rate.

Drug or alcohol overdoses are the number one cause of these types of fatalities, but also saw a drop from 512 deaths in 2023 to 410 deaths in 2024.

Worker Characteristics

The fatal injury counts for Black or African American workers decreased in 2024 to 624 from 659 in 2023.

The fatal injury rate for Hispanic or Latino workers dropped to 4.3 fatalities per 100,000 full-time equivalent (FTE) workers in 2024 from a rate of 4.4 in 2023.

Women made up 8.1% of all worker fatalities but 15.3% of fatalities due to homicides in 2024.

Type of Fatal Event or Exposure

Transportation incidents were the most frequent cause of fatal injury in 2024, accounting for 38.2% of all occupational fatalities that year. However, the total number of fatal transportation incidents dropped to 1,937 in 2024 from 1,942 in 2023.

Falls, slips, and trips are another common cause of worker fatalities, but decreased 4.6% from 885 in 2023 to 844 in 2024. In 2024, over 10% of these fatalities resulted from a fall from a height over 30 feet.

Fatalities due to violent acts also decreased slightly, to 733 in 2024 from 740 in 2023.

Occupation

Construction workers saw the second highest number of work-related fatalities in 2024, after transportation workers. In the construction industry, falls, slips and trips caused 370 fatalities in 2024, down 7.5% from 400 in 2023.

Building and ground cleaning occupations and maintenance workers saw an increase in fatalities from 2023 to 2024 as did protective service occupations.

Fatal injuries are the worst-case-scenario on a jobsite and serve as a reminder of how important it is for employees to be properly trained on all safe working procedures. Rancho Mesa clients can use safety trainings and toolbox talks in the SafetyOne™ app to ensure their employees are prepared for the dangers and risks on a jobsite.

A library of 52 driver-specific toolbox talks is available through SafetyOne to aid in the prevention of transportation incidents that could be fatal. Slip, trip, and fall prevention toolbox talks are also available in SafetyOne.

Additionally, Rancho Mesa is hosting a Ladder Safety workshop on Friday, March 13th, 2026 at 9:00 AM. This workshop will address common causes of ladder-related injuries and how to keep workers safe when they are required to use ladders.