Industry News
Strategies to Help Contractors Reduce Insurance Costs
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
Rising insurance costs in California continue to put pressure on contractors. While many companies focus on finding lower premiums, the most effective way to control insurance costs is to reduce risk before claims occur.
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.
Navigating California’s Hardening Marketplace
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
California’s insurance market has shifted dramatically in recent years, creating challenges for both carriers and insureds. While premium increases are often the most visible sign of a hard market, the underlying issues are far more complex.
Preparing the Next Generation of Construction Leaders
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
This year has brought significant challenges for many of our clients. Amid economic shifts, project delays, and labor uncertainty, one concern has become increasingly common in conversations with construction leaders: the difficulty of attracting qualified younger employees and the growing struggle to replace retiring leadership.
Mid-Year Insurance Outlook for Contractors: Rising Costs, Tighter Margins
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
As a contractor in California, you are likely feeling the squeeze, right now. Material costs are up, labor is more expensive, and insurance, typically a predictable line item, is becoming a growing burden on your bottom line. 2025 is proving to be one of the most challenging years yet for construction business owners. Even companies with best practice risk management controls in place are getting hit with premium increases that are hard to absorb.
Evolution of Exterior Insulation and Finish Systems in California
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
Exterior Insulation and Finish Systems (EIFS) has been around since 1969 and has grown in demand for new construction in California with a constant push to get closer to “net-zero” buildings. With our strong niche in plastering, drywall and painting contractors in California, one of the most frequently asked questions by insurance carrier underwriters pertains to whether a contractor self-performs or subcontracts out EIFS work. This has become a significant concern for insurers, particularly when it comes to the proper installation of drainage systems over wood-framed buildings and/or the use of inferior materials. Over the past decade, there have been significant strides to insulate contractors from claims arising from EIFS.
Mitigating Inland Marine Losses
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
Inland marine insurance can sometimes be a forgotten line item in some construction companies’ insurance portfolio. This insurance covers your materials, equipment and tools once they are in the field or in transit. Sometimes insured’s feel they have coverage through their property insurance but once the equipment, materials or tools leave your premises, inland marine is the line of insurance that covers you.
Employer’s Guide to Handling Cumulative Trauma Claims
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
A growing thorn in employers’ sides has been the rise of worker’s compensation cumulative trauma (CT) claims. Cumulative trauma refers to the ongoing psychological and physical injuries that accumulate over time, often resulting from repetitive stress or exposure to adverse conditions. Employees missing time can lead to larger workers’ compensation claims, lower moral and less efficiency. It can be easy as an employer to take a defensive stance and fight every one of these but there are a few factors that need to be taken into consideration prior to deciding if you should settle or challenge these claims.
Return to Work Programs: Best Practices for Handling Workers’ Comp Claims
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
How do you handle the situation when a great employee is injured but not quite ready to return to full duty? We do all that we can to prevent injuries and make sure once they do happen our employees are taken care of quickly and properly. The one true variable we have in our control, after a claim has been filed, is how to accommodate employees that are injured but not able to return to normal duties until deemed fully recovered.
How to Strategically Grow Your Construction Company
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
One of the biggest ongoing challenges in the construction industry today is hiring and retaining quality employees that can help build on a company’s foundation. Growing a construction company in a sustainable way through internal promotions while also integrating new hires can separate one company from its competitors.
The Billion-Dollar Cost of Working at Height: The Critical Questions to Ask Before Climbing a Ladder
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
Every year, OSHA publishes a “top 10 most frequently cited standards” list. Without question, ladders and fall protection consistently make the list. A Liberty Mutual 2023 workplace survey found that $6.26 billion was spent on falls as a result of working at height. Working at height is inherently dangerous but becomes more so when the incorrect ladders are used or improper setup for a job. Sending your employees to a jobsite without conducting a proper analysis to guarantee you have the proper equipment is setting yourself up to have preventable claims.
Steering Towards Safety: Strategies for Lowering Commercial Auto Insurance Premiums
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
We are going into uncertain times as some commercial auto carriers are electing to no longer write new business in California. This is leading to other carriers, that are still willing, to be overwhelmed with requests for insurance quotes. Carriers are limited in the increases they can take from one policy period to the next and have had increasingly bad losses which has made it impossible to be profitable. This will lead to carriers inevitably charging more over time as the losses have become staggering. Let’s take a look at what you can do as an insured to help your company look like a better risk for these carriers and mitigate premium increases?
Implementing Best Practices when Hiring in the Construction Industry
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
With unemployment rates settling near 4 percent, it is becoming increasingly difficult to find the right employees to help grow your construction company. With most able-bodied workers having secure employment, this leads to having either apprentice-type employees that come with unique challenges or pulling from an aging workforce that can bring cumulative injuries and risks. Navigating these issues can be complex and there is not a perfect solution, but employer’s hiring practices need to change in order to keep up with the current state of the industry.
Properly Utilizing Tailgate Meetings
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
For many foremen and superintendents, weekly tailgate meetings can feel like a task that just needs to be checked off the list. However, while the purpose of these meetings is critical for the health and well-being of fellow field employees, the time required and repetitive nature of them can create challenges. To maximize the benefits of these meetings, construction firms must be proactive and thoughtful as they develop an inventory of topics.
Construction Death Rate Not Decreasing as Expected
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
With the heightened safety regulations and OSHA guidelines over the past decade, many would think we are working in a much safer environment with fewer fatalities. Despite the rising number of employees and using a standard based off deaths per 100,000 employees, the data is showing that the number of fatalities are the same as they were a decade ago.
The Link Between Your EMR and Primary Threshold
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
One of the biggest concerns for contractors is their Experience Modification Rating (EMR). If your EMR exceeds 1.00 or 1.25, contractors can be removed from bid lists and premiums can escalate quickly. Most decision makers have little idea what factors contribute to the EMR and just how claims can impact them.
Staying Ahead of the “Hard Market”
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
Over the past 15+ quarters, California employers have been experiencing a soft workers’ compensation marketplace. At some point, however, this will start to pivot and the companies that will secure the more favorable pricing must be able to differentiate themselves to their insurance carriers. As we continue seeing signs of the hard market coming, without this solid explicit differentiation, it will become harder for our carriers to be aggressive with their pricing. With all of that said, as a business owner, you may be asking how you differentiate yourself to the insurance marketplace and protect your company from large premium increases. Following are some proven methods.
How Higher Average Pay Can Lead to Work Comp Savings
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
Wage thresholds have increased consistently in the past decade. This has pushed owners to give sizable raises every few years to maximize employee compensation, but also reducing insurance cost. The experience modification (MOD) and payrolls are key factors in developing a company’s net rates for workers’ compensation, but average wage per hour represents a big differentiator for most carriers and can lead to even more savings.
Wage Inflation’s Impact On Workers’ Compensation
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
Following up on a great article by fellow construction team member Kevin Howard, about anticipated wage threshold increases coming in 2022, I wanted to highlight the building problems resulting from substantial hourly wage increases.
Pure Premium and How It Impacts Your Company
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
The Workers Compensation Insurance Rating Bureau (WCIRB) is an agency that compiles essential data annually which determines how your Experience MOD is impacted.. These factors establish the baseline average MOD of 1.00 for California companies that produce enough payroll and premium to qualify within the guidelines. These factors can change year to year and represent a key rate trend indicator for all policyholders.