RMO World – Issue 8: June 2022
https://rmoagency.com/wp-content/uploads/2022/06/Newsletter-feat-image.jpg 1000 560 Gal Bigaleizn Gal Bigaleizn https://secure.gravatar.com/avatar/45becbadb1d2bf2b5e459bfe82091c31?s=96&d=mm&r=gIssue # 8
June 2022
Featured in this edition:
- 10 Common Mistakes, Pt. 2
- Tips From RMO Agency
- How To Save Money on Workers’ Comp Insurance
- Got A Story? Lunch Is On Us
10 Common Contractor Mistakes, So You Can Avoid Them, Pt. 2
We have created this guide of common mistakes made by some contractors, so you can recognize them and avoid these mistakes before you make them yourself. This is part 2 of our list of 10. To read the first 5, check out last month’s issue HERE
6 – Not getting proper insurance coverage
You want to make sure your business is protected by purchasing good liability insurance and worker’s compensation policies. Having liability insurance will ensure that you will be represented, and your legal fees paid if your company is sued by a homeowner for a project you are working on. Contractors sometimes also consider professional liability insurance and perhaps an additional umbrella policy. Speak with your insurance broker about the best coverage for you and your company so you are prepared if a legal issue ever occurs.
7 – Not Properly Taking Care of Your Equipment
This is so basic. Your tools are your livelihood, everything from your hammer to your crane, and all of it should be treated with the respect that it deserves. Whether you are going to rent or own construction machines, predictive maintenance will be required in construction estimating for reducing costs over time. For your hand tools (hammers, screwdrivers, levels, etc.), it really is as simple as just cleaning and putting away your tools at the end of the day. For your larger equipment (cranes, bulldozers, excavators, etc.), avoid unnecessary downtime by setting up maintenance schedules. A better approach is to use the sensors that will be transmitting signals in real-time that will tell you when specific machines will need maintenance and when.
8 – Bidding Without a Strategy
Most construction projects are awarded through competitive bidding. You need to develop a strategy for presenting your competitive prices to potential customers. This does not mean that you should simply offer the lowest bid. Unrealistic low bids will only result in further costs later when you find that you are not able to come in at the bid that you submitted. This will of course anger your customer and make you look bad. You need to focus on areas where you can cut costs without compromising on quality. Most of all, you need to find your competitive advantage for attracting clients and projects.
9 – Not Paying Attention to Customer Concerns
Contractors are notorious for ignoring specific wants and requests from their customers. If you don’t pay attention to what your client wants, you may end up with unsatisfactory results or even worse, unhappy or even angry clients. Even if you have decades of experience and have seen it all, take the time to listen to what your clients are saying and remember it is their project and after you have walked off the job site on the last day of the project, the client will still be there living with your work, so make sure it’s the work they wanted and is the best it can possibly be.
10 – Taking on Jobs That Are Too Big
That first taste of success is addictive, be cautious. Getting too big too fast is an easy yet costly mistake to make. Stay the course, grow smart, and make sure you’re allocating time and expenses properly to avoid neglecting other areas of the business. Rome wasn’t built in a day and your successful contracting business won’t be either.
Tips From RMO Agency
Tips for working with your RMO.
Discover How Successful Contractors Save Money On Their Workers Compensation Insurance – Every Year!
In today’s tough business environment, saving every penny and avoiding unnecessary costs can determine whether or not your doors stay open. Plus, we also know that workplace accidents happen. It’s not a matter of IF an accident will happen, it’s just a matter of when that accident will happen.
Below are some of the best ways to save money on your Workers Compensation insurance. Each of these strategies is important. However, in our experience, #1, #8, and #9 will have the most impact in saving you time and money.
- Shop & Compare…Every Year!
If you are serious about saving money on your insurance costs every year, you must shop and compare. Every year there are new carriers entering into the California Workers Comp marketplace and your existing broker may not have access to some of these new options. - Join a Construction Association
Construction Associations can provide you with a great opportunity to network with and build relationships with other trades. Other benefits include discounts on products and services that you rely on as a business owner and some associations even offer insurance discounts to their members. - Have a documented Safety Program
The State of California requires that you have a written safety program. A solid safety program also demonstrates to insurance carriers that you take this stuff seriously. Insurers will be more impressed if you give your program more than lip service by documenting regular on-the-job safety training/updates for staff. You should also require that employees sign off that they’ve read and received your program material. Contact us if you need a Safety Program. We can help get you started in the right direction! - Have a return-to-work program
Accidents will happen even in the safest work environment. When they do, a return-to-work program can help you contain costs. The longer a claim stays open, the more it costs your insurance company–costs that are ultimately passed on to you. The goal is to close any worker’s comp claim as quickly as possible by getting the injured employee back on the job, even if it’s part-time or reduced duties approved by the employee’s medical provider. - Support a substance-free workplace
Employees who use drugs or alcohol on the job cause injuries to themselves and others. They also cost their employers about twice as much in workers comp and medical claims as non-abusers, according to data from the Substance Abuse and Mental Health Services Administration. At a bare minimum, make hiring contingent on passing a pre-employment drug test. You may also want to consider random testing for all employees. - Make sure you have the proper job classifications and class codes assigned to your employees
Sad but true. Some insurance brokers are lazy and do not accurately classify workers correctly when they submit your worker’s compensation policy to the insurance company. A mistake in a wrong classification can cost you thousands of dollars in unnecessary costs. As a business owner, you want to ensure that you review the Class Codes that your insurance broker submits to the insurance company on your behalf. This tip is especially important in the construction industry as there are both Class Code ratings and Hourly Wage ratings that will impact how much you pay for insurance. - Educate your employees about the difference between minor injuries and reportable incidents
Avoid unnecessary reporting that can create adverse loss ratios on your worker’s comp record. Small injuries like minor cuts or scrapes that can be treated with on-the-job first aid, an office visit, and a follow-up for observation should not be reported. - Voluntary benefits may help reduce workers’ compensation claims
Because of the high direct and indirect costs of claims, companies are naturally looking for ways to reduce their workers’ compensation claims. Voluntary insurance benefits could be the answer. Of employers who offer voluntary insurance, more than 50% offer voluntary accident insurance. Of those who offer this benefit, 51% say they have seen a decline in workers’ compensation claims since doing so. - NEW for 2022 – Developed for California Contractors with 2 to 49 employees, ContractorGUARD allows you to:
- Reduces your costs and helps to avoid the expensive claims.
- Start or Renew your Workers Compensation Insurance with a Low Down payment.
- Simplify your process of reporting your payroll with an easy to use online reporting tool.
ContractorGUARD is Only Available through The Contractors Resource Center. To get your Free Workers Compensation quote: CLICK HERE
Kevin Leipsic is the CEO and Founder of The Contractors Resource Center in Sacramento, California. The Contractors Resource Center specializes in working with and serving California Contractors with their Legal, Financial & Insurance Services. Kevin serves as an Insurance Advisor to the California Building Industry Association and the National Remodeling Association and is the host of the popular ContractorTV show on YouTube. He also manages one of Facebook’s largest communities for California Contractors. This community was created to allow California contractors to connect with each other and build relationships and also services as a free resource for homeowners searching for licensed and insured contractors.
Kevin can be reached directly at: 530.320.3617 or Kevin@TheContractorsResourceCenter.com
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