Services: Claims
At Construction Risk Partners, our high level of claim advocacy has evolved over many years of determining the needs of our clients. Construction claims arise out of the operation of your businesses and projects. However, the personal nature of claims that are made against you demand a hands on approach, right from the initial report to the final outcome. Your loss experience is important, so you need to be completely comfortable that your interests are being protected throughout the entire process. CRP has the experience and relationships necessary to advocate your interests and ensure the outcome of your claims are fair and equitable.
We highlight the following lines of coverage and our capabilities to help you address these claim exposures:
Worker's Compensation
There is no single line of insurance that is more influenced by your loss experience than worker's compensation. How often have you disagreed with a carrier's reserves, yet felt helpless to have it changed? Whether you have a large deductible program, or are concerned about your experience mod, or both, worker's compensation claims have a direct impact on your bottom line. We will work with your staff and your insurance carrier to ensure that your worker's compensation claims are managed correctly. This means that your interests are being properly protected, while your injured employees are receiving the appropriate benefits.
General Liability
Construction general liability (GL) claims and exposures have continued to become more complex as the legal landscape continues to evolve. This includes the ever-changing contractual law, the litigious nature of claimants, and the liberal court system. We will help you manage these claim issues by working closely with you and the insurance carrier. It's our philosophy to have a direct "hands on" approach with your claims so that you receive the benefit of proper transfer of risk (contractual), prompt and thorough investigations, and accurate reserving.
Automobile & Equipment
Generally, auto and equipment claims are the most straightforward. Most problems arise due to slow response on the part of the carrier. This is true whether it's damage to one of your vehicles or equipment, or damage to a claimant's vehicle. In most cases, we will report the claims directly on your behalf and facilitate the initial damage inspection. We'll then follow up regularly with the carrier to ensure that the claim continues to progress in a timely fashion.
For auto liability claims involving bodily injury, we will take the same active approach as described for worker's compensation and GL claims to ensure that the carrier's investigations and evaluations are appropriate and in your best interest.
Contractual Risk Transfer
Contractual Risk Transfer (CRT) is both a claim management and loss control technique. CRT is one of the purest forms of loss control because, if properly managed, it's a pre-loss process. After a claim occurs it becomes a claim management technique because with the proper insurance specifications, additional insured wording, and indemnification agreements in place, you can successfully reduce the reserves and net cost of certain third party claims. An effective CRT process enables you, as the contractor, to "transfer" all or part of the cost of a GL claim, including defense costs, to your subcontractor.
On large deductible programs, the dollar impact is direct. On traditional guaranteed cost programs the benefit gained by protecting your loss experience is invaluable. Insurance carriers are attracted to contractors who can demonstrate a well managed CRT program, and are more apt to provide better terms and conditions to those contractors. The major elements of an effective CRT program involve:
- Proper indemnity language
- Proper additional insured wording
- Proper certificate of insurance management
We have had much success with our techniques in this area and are committed to bringing your CRT program in line with best practices.
Worker's Compensation Experience Rating Modifier
In today's construction environment, the experience mod has become a focal point. In many instances, whether it is right or wrong, you are measured by your actual mod factor.
While the experience mod has a direct impact on your worker's compensation premium, it's becoming more common for an owner's prequalification questionnaire to require a minimum standard for the experience modifiers. In fact, many owners now require a mod of 1.00, or better. As a result, your ability to bid on certain projects can be affected. Contractors who carry very good experience mods have found it beneficial to highlight their mod in marketing presentations.
Here's the bottom line: with all the emphasis on the experience mod factor, the simple fact is this: "if you have a good mod, you want to keep it, if you have a bad mod, you want to improve it." It is our job to help you manage this process.