risk assessment

business

Contractor

Allied understands that building is your passion, and that no two electricians, roofers, carpenters, plumbers or masons are the same. Common risks concerning contractors appear below. For truly personalized business solutions, contact your local, independent Allied agent for more details.

Workers’ Compensation laws are different for each state. Check the US Department of Labor to find specific information about yours.

High risk

Product liability

Your product is the quality of your service, which means your business may be at a risk for liability expenses related to faulty repairs or installation.

• Stay informed of product recalls and immediately stop installing or using supplies that may pose a hazard
• Follow all manufacturers’ guidelines on equipment installation
• Never substitute anchors or fixtures in product installations
• Obtain certificates of insurance from subcontractors
• Leave a business card with your customers, indicating you’re available to answer their questions

Keep on top of consumer product recalls before you install or assemble, and check with the Consumer Product Safety Commission (CPSC) in case you need to give special instructions or warnings to customers about certain products. 

Workers’ compensation

Construction, installation and maintenance can be dangerous. Power tools, welding, paint fumes, and even your vehicles offer potential injury hazards. Accidents aren’t the only workers’ compensation risk, though. Repetitive stress or gradual illnesses from exposures can also produce a claim.

• Don’t remove or disable safety guards that seem to “get in the way”
  
• Train employees to use tools safely, especially power tools and welding machines
  
• Require personal protective equipment like goggles, gloves, masks, hard hats and sturdy footwear
  
• Learn about ergonomics and warning signs of risk factors, including awkward posture, high hand force, repetitive motion and heavy lifting
  
• Establish a floor cleaning policy to include proper cleaning of spills
  
• Choose a safety officer or committee to help with safety training
  
• Use ladders only as directed, for the intended purpose, and on steady surfaces
  
• Be extra careful when working outdoors and in hot, cold or stormy weather

Workers’ Compensation laws are different for each state. Check the US Department of Labor to find specific information about yours.

Crime/theft

Job sites can be tempting for thieves. They may think it’s easy to re-sell stolen goods, and some contractors have poor security. Theft from construction sites can add to the cost of every project. Don’t leave your assets vulnerable. Make sure your business is as unattractive as possible to criminals.

• Put vehicles, tools, and supplies indoors overnight, keeping the keys with you, not in the ignitions
  
• Install an alarm on trailers or temporary storage
  
• Mark equipment with ownership identification to help find items if stolen
  
• Use internal controls to deter employee theft
  
• Keep a standard opening and closing procedure, it makes it easier to notice when something’s wrong
  
• Be sure your job sites and building(s) are well lit, inside and out
  
• Tell the local police department about deliveries, schedules and activities so they know when something seems strange

The National Crime Prevention Council has tips for reducing all types of crime, including theft and violence prevention for homes and for businesses.

Professional liability

You’re an expert in your field, so your business may run a higher risk than usual for professional liability expenses. If you offer consultation, teaching, or if you make custom fixtures, it could increase your risk as well.

• Use recommended parts for equipment installations
  
• Strictly follow blueprints or engineering specifications
  
• Teach building owners about responsible maintenance
  
• Choose a quality control officer or team to double-check projects before you leave the site
  
• Stay in communication with customers along every step of a project
• Explain risks and benefits to customers for all repairs or improvements

Get in touch with local union chapters or professional organization to keep on top of industry events and news: general contractors, plumbers, carpenters, bricklayers, plaster and cement masons, electricians, roofers

General liability

It’s easy to see why you love your work. But, work in progress at a job site may open you to liability risks. Any sort of harm to visitors while you’re working can hurt your bottom line. Keep it safer by planning ahead, staying alert, and having a policy for damage control.

• Use bright lighting
  
• Hold safety meetings to keep up to date with project changes
  
• Don’t store ladders in public areas where they might be knocked over
  
• Put warning signs around work zones
  
• Store tools in locked toolboxes
  
• Children might think construction sites seem like a cool place to explore, so take measures to protect kids and your equipment
  
• Practice safe traffic control when using equipment near roads
  
• Put waste in proper containers, especially chemicals, paints, glues, solvents or sharp objects
  
• Limit visitors in work areas unless escorted by an employee

For information about pollution and safe disposal of certain types of hazardous materials, visit the Environmental Protection Agency (EPA).

Medium risk

Fire

Job sites can catch and spread fire quickly, especially if you’re welding or working near gas lines or live wires. Extra planning for fire safety can help. Even after a fire, you might find that smoke or water can damage property. Your fire risk varies with how much and what type of work you do, but keep an eye on all fire hazards to be on the safe side.

• If you do welding or grinding that throws sparks, ask someone to watch for small fires for up to an hour after you finish
  
• Install circuit interrupters on temporary electric wiring
  
• Use UL approved storage containers for flammable liquids
  
• Ground and bond flammable and combustible materials when dispensing
  
• Be extra cautious if you need to use space heaters on a job site
  
• Do welding in designated areas only
  
• Keep extinguishers charged and accessible

For additional information on fire safety and prevention at work and at home, visit the National Fire Protection Agency (NFPA) and FireSafety.gov.

Equipment failure

Modern machinery helps you work more efficiently, but you could get by the old-fashioned way if you had to -- with your trusty toolbox and elbow grease. Your business might hurt if your equipment were to break down for a while. So, plan now for what you need in a major outage, before you’re caught off guard.

• Schedule checks on major equipment
  
• Prepare for breakdowns by finding equipment rental companies
  
• Come up with a plan for working without certain machines
  
• Keep warranty and purchase or lease information organized
  
• Buy a back-up generator for electricity outages

The energy efficiency experts at EnergyStar have information about reducing energy needs, so you can keep the business running as long as possible during a blackout.

Auto/fleet

Since you travel to job sites to complete contracts, you need to practice fleet safety. Most personal auto insurance doesn’t apply to accidents that happen on business time. Be sure you’re covered, in case of emergency.

• Pack tools securely, to reduce distractions to the driver
  
• If you have a detachable trailer, give extra training for turning, stopping, and reversing
  
• Require all employees to wear safety belts
  
• Provide a cell phone in case drivers need to contact you, but be sure to remind them to pull over in a safe location before they call
  
• Log maintenance, repairs and accidents
  
• Don’t put your keys in the hands of an unsafe driver. Check the driving records of anyone who uses company vehicles

For more on driving safely, visit the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety.

Low risk

Data loss

To keep up with competition, inventory and customers, you probably use computers. If you have a website, you use them even more. So, you know that when computers have problems, business suffers. With a little planning, you can work around occasional system failures.

• Keep paper copies of electronic records and update once a month
  
• Backup computer files daily or weekly on a disk and store offsite
  
• Install a UPS (uninterruptible power supply) to give you time to make a clean shut down during power surges or blackouts
  
• Create a recovery kit, including system disks, registration, manuals and a recent backup
  
• Use and update anti-virus software
  
• Train everyone on startup, data entry and shutdown
  
• If you have questions, contact a technical support person. Most computer retailers have contact information for reliable technical assistance if you need it

The Federal Trade commission has more information about internet threats and information security.

For even more information, and to keep posted on the latest tips and trends, visit:

• Occupational Health and Safety Administration (OSHA)
• National Safety Council
• Institute for Business and Home Safety
• National Institute for Occupational Safety and Health
• US Department of Homeland Security

The information contained herein is intended to assist you in making decisions that may reduce your risk of loss, but is not intended as an inclusive list of all risks. The information contained in this publication was obtained from sources believed to be reliable. Nationwide Mutual Insurance Company and its employees make no guarantee of results, and assume no liability in connection with the safety and loss control suggestions or information contained herein. Furthermore, it cannot be assumed that every acceptable safety or loss control method is contained in this publication, or that unusual circumstances may not require additional methods. The maintenance of safe premises, operations, and equipment is your legal responsibility. Nationwide cannot and does not guarantee that any of the advice is in compliance with your specific state laws.