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Pursuing Business With ‘Risky’ Accounts

Prevailing business wisdom holds that the way to reduce credit risk is to limit credit lines, be stingy in allowing credit and freeze orders on past due accounts. This line of thought posits that it is generally impossible to lower “bad debt” losses without adverse consequences to sales and business expansion. Read The Full Story »

GC Liability InsuranceMore Like This

Construction contract documents are more frequently stipulating $2 million single occurrence, $4 million aggregate general liability policy limits verses the more common $1 million single, $2 million aggregate limits held by the vast majority of contractors. While the higher limits provide more coverage than a traditional policy, it’s important to also consider an umbrella or excess liability policy. The general consensus in the insurance industry is a $1 million/$2 million policy with the appropriate endorsements and a supporting excess liability policy can provide equivalent coverage to a $2 million/$4 million policy. Continue »

TheftMore Like This

Equipment and materials used for transportation projects are subject to a variety of exposures before they even arrive onsite. The size and type, origin and destination, and special handling requirements of the equipment or material may necessitate the use of a hauler with specialized knowledge. Understanding and safeguarding against three of the most common risks—collision, overturn and theft—should be considered when developing a project plan. Asking the right questions in advance will help ensure each team member has the same expectations for the protection of assets. Continue »

Risk ManagementMore Like This

Since the recession started in late 2007, the ability to present adequate surety capacity at a competitive cost has become increasingly critical for prime contractors and subcontractors to satisfy owner and lender requirements on private work. In many cases, bonding capacity and cost have been key determinants in winning—or losing—private jobs. Similarly, with public-private partnerships (P3s), it is essential for a contractor (or consortium of contractors) to find an innovative surety partner that is willing to accept obligations and risks that exceed what they traditionally bond. Continue »