Did you know contractors can incorporate insurance costs into construction bids?  These insurance costs can include general liability, workers’ compensation, and other types of insurance required for the project.

Including the hard costs of known exposures for general liability, workers’ compensation, auto, inland marine, umbrella as well as “other insurance costs” during the initial bidding phase can reduce the exposure to profit during or after a project has been completed.  Your insurance broker should provide a rate summary for these coverages that is easy to access and allows your estimating team net rate data for these exposures.  “Other insurance” costs can include but are not limited to:

  • USL&H coverage, United States Longshoremen’s, and Harborworkers Act
  • Professional Liability
  • Pollution Liability
  • Railroad Protective
  • Builders Risk
  • Additional Insured Forms not listed on the policy

These items can be rated separately from your insurance package and may likely result in additional premium.  It is highly recommended that during the bidding phase of a project, your estimating team provide the broker with the insurance requirements to provide a complete review.  Any additional costs should be quoted and provided to you prior to your final bid.

Contractors who work with an insurance broker to accurately estimate insurance costs and incorporate it into the bid can experience a successful and profitable project!

To learn more about job costing with insurance, contact a Marsh McLennan Agency advisor today.

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