Why Small Construction Companies Need Risk Management


Since we are in the insurance business, we have become adept at explaining to construction company owners the value of what we offer. If you do not utilize professional risk management services, then you are opening yourself up to significant and possibly business fatal financial losses. The construction industry is a dangerous place, and trying to work in that industry without the help of a risk management team is a very bad idea.

Large and medium size construction companies immediately see the value of risk management, and we are able to get started on plans that will preserve their operating capital and keep them in business for the long term. But small construction companies still feel as though they have protections in place already that void the need to work with a risk management firm like ours. These protections small construction companies rely on always fail them, and the financial damage done is always much worse than if they had teamed up with our professionals in the first place.

Personal Insurance

Small construction company owners often mistakenly think that their personal auto or even homeowners insurance will cover them in the event of a business loss. Business owners need to understand that personal and business insurance are two different things, and your personal insurance will never protect you in a commercial incident.

If you are using your personal truck on a job site and your truck is significantly damaged, your personal auto insurance will not cover the damage. If you think that your homeowners liability insurance will cover the theft of expensive power tools from your business garage, then you are in for a rude awakening.


For many reasons, small construction companies feel comfortable relying on the cash they have in the bank to cover the costs of any job site incident that may occur. We usually find that the small construction company owners who are comfortable relying on cash are the owners who have yet to experience a significant loss during a job.

If an employee of yours injures a pedestrian while working on a job, then the medical and court costs could be astronomical. Relying on cash as a construction company owner is akin to sitting on a ticking time bomb. You are much better off taking some of that cash and investing it into professional risk management services.

Homemade Solutions

There is absolutely nothing wrong with a small construction company owner who feels that they want to take care of their own business needs. But if your expertise is in construction and not risk management, then you are wasting time and money by doing it yourself.

We have business experts who can work with you to identify all areas of risk in your operations, and put the proper protections in place. Our goal is to protect your business without wasting your time or money, and we do so while working by your side the whole time.

No matter what size your construction company may be, you need professional risk management services to navigate the dangerous waters of the construction industry. Contact our experts and we will work with you to put together a plan that fits your business and your budget.