Masonry

Insurance Needs for a Masonry Small Business

With a booming economy comes a booming construction industry.  One essential part of the construction industry is enough masonry companies to fill the needs of builders. Masonry contractors install and repair brick, block, stone, veneer and other masonry items onto and inside of buildings or structures. Their work may include fencing or retaining walls, outside signs and other related structures. The masonry industry consists of more than 41,000 businesses in the United States. The industry generates $23 billion in revenue each year and employs more than 147,500 people.  Masons practice a craft that has been handed down for centuries and takes years of careful study working with a master craftsman.

As a small-business owner (or even a person considering starting a small business), your mind is more than likely spinning over all the types of insurance you have to choose from.  It is important to not take this part of running a business lightly. Each type of insurance covers a different risk your business may or may not face. Here is some information about the risks Masons face and the types of insurance coverage a business within this industry should consider.

Brick Wall finished by a Masonry Company.

Unique Risks within the Masonry Industry

Masons work with heavy materials which elevates the risk of bodily injury. Working in the Masonry Industry requires bending frequently bending and lifting heavy objects. This can cause excessive wear and tear on the body. Wearing a back brace and lifting with the knees instead of the back should be a common part of any businesses protocol. Implementing a safety program and including the workers in the development and implementation of the program is the best way to create a company culture focused on safety.

Masons rely on their chisels, mallets, and metal straightedges to perform their work.  If those tools are lost, damaged, or stolen the mason is not able to do their work.  Depending upon how expensive or how specialized these tools are, an inland marine insurance policy may be needed to help replace the tools quickly in the event of damage or theft.

Construction worker doing Masonry.

Recommended Insurance for Masons 

  • General Liability Insurance
  • Inland Marine Coverage
  • Property Insurance
  • Hired and Non-Owned Auto (full commercial auto if vehicles owned)
  • Workers Compensation

General Liability Insurance

General Liability Insurance is required by law for most masonry businesses. Contractors will need it to enter into most contracts. General Liability protects masons from common property damage and bodily injury claims. It is important to remember that it is not all-encompassing. There are exclusions in every policy and it is important to discuss with your independent insurance agent what additional coverages your business may need.

Inland Marine Coverage

Inland Marine Insurance is designed for businesses that have specialized equipment and tools that are frequently in transit away from the businesses location. It can also cover equipment that is stored at a third party location. If your business has a trailer you use to haul necessary equipment or if you store equipment off-site, this coverage may be necessary to adequately protect the business.

Property Insurance

Commercial Property Insurance is needed whether you own or lease the property your business is located. It will cover the structure of the business and some additional equipment like cabinets, and desks. There are exclusions to each policy. Take an additional few minutes before purchasing to understand exactly within your business is and is not covered by a commercial property insurance policy.

Hired and Non-Owned Auto

Hired and Non-Owned Auto Insurance is a type of commercial auto insurance for businesses that have employees drive their personal vehicles for business purposes or leased vehicles. If your employees are driving as a result of work and they cause an accident, the business is responsible for the damages to third parties. This can be extremely costly if it is not properly covered.

Workers Compensation

Workers Compensation Insurance is required by law for most businesses in most states. Some states have exclusions depending upon the industry, the number of employees, or the revenue of a business. Even if a business is allowed to not carry coverage, it is usually in the best interest of the business to still carry some form of coverage. Even if the business has one employee who is the owner, there is a ghost policy that is offered at a much lower rate that can meet the requirements for most contracts.

Additional Coverages Masonry Businesses Should consider:

  • General Liability
  • Inland Marine Coverage
  • Commercial Auto
  • Business Income with Extra Expense
  • Umbrella

Masonry Contractors and Construction

SIC Business Insurance Codes:

  • 1741: Masonry, Stone Setting and Other Stone work

NAICS Liability Classifications:

  • 238140: Masonry Contractors
  • 327310: Cement Manufacturers

Business ISO General Liability:

  • 97447: Mason Contractors

NCCI Class Codes:

  • 5022: Mason Contractors and Masonry Construction
  • 5222: Concrete Construction—Bridges and Culverts

Mortgage Brokers

Recommended Insurance Coverages for Mortgage Brokers

Mortgage Brokers are an essential part of the economy i 2019. They act as middlemen helping realtors get home buyers the best solutions to all their mortgage needs. Mortgage Brokers are individual financial institutions that lend the funds for the purchase of property. The properties can be for both business and personal use. Some mortgage companies also service escrow accounts, offer some real estate services, and some even broker or sell mortgage loans to other operations. With each type of service the business offers additional risk is taken on by the financial institution. Here are five types of insurance all mortgage brokerage businesses should consider.

Picture of a house with a Mortgage Broker handing the keys to the new homeowner.

Minimum recommended coverage:

  • General Liability
  • Workers Compensation
  • Errors & Omissions (Professional Liability)
  • Hired and Non-Owned Auto
  • Property Insurance

Answers to your Mortgage Broker Insurance Questions.General Liability

General Liability Insurance for Mortgage Brokers is usually the first type of coverage a broker needs. It protects the broker from common slips, trips, and falls. These incidents can happen at the location of the mortgage broker or at a third party site. A General Liability Policy can cover damage in the form of bodily injury and property damage.

Workers Compensation

Workers Compensation is typically the second policy the owner of a mortgage brokerage service discusses with their insurance agent. This is because General Liability and Workers Compensation are required by law for most businesses in most states. Workers Compensation covers a business for injuries to employees that happen within the normal course of business. The policy covers medical costs and some lost wages for injured employees who are hurt and not able to work. Implementing a well-documented safety program and focusing on ergonomics within the workplace can help limit the amount of injuries your employees experience.

Errors & Omissions (Professional Liability)

Errors & Omissions is frequently referred to as Professional Liability. In other industries it may be referred to as malpractice. This type of insurance protects businesses and their employees from claims of negligence or  inadequate work. Any business that gives professional advice for a fee needs to secure an errors and omissions insurance policy.

Hired and Non-Owned Auto (full commercial auto if vehicles owned)

Car Accident with a red car flipped over lying upside down. Hired and Non-Owned Auto Insurance is designed for when an employee uses their personal car or when an employee drives a rental car for purposes. It is common for a mortgage broker to meet at a third party site for many business functions. When they are driving to and from these appointments, the business is liable for damages occurred when the employee causes a wreck. A Hired and Non-Owned Auto Insurance Policy can protect the business, up to the limits of the policy, from the liability it faces when an employee causes an accident while on company time.

Property Insurance

Commercial Property Insurance is designed to protect any business from both legal liability and property damage related to the building they operate in regardless of whether the business owns or leases the facility. Most commercial property insurance policies provide coverage for a wide variety of damages that usually include fire, smoke, wind, vandalism and civil disobedience. The policies frequently list included and excluded damages. Some common exclusions often include damages resulting from earthquakes and hail. These damages may have a separate deductibles or be excluded from coverage altogether. One thing to ask your agent when purchasing commercial property insurance is the differences between actual cash value and replacement cost.

 

Other coverages to consider for Mortgage Brokers:
Business Personal Property, Extra Expense, Financial Institutions Bond, Accounts Receivable, Computers, Valuable Papers and Records, Directors and Officers Liability, Employee Benefits, Umbrella Coverage, Computer Fraud, Extortion, Cyber liability Insurance (Data Breach Coverage), EPLI and Mortgage Errors & Omissions.

Mortgage Brokers Liability Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Mortgage Brokers. Here are the most common business insurance classification for Mortgage Companies:

Business Liability Category: Financial Institutions

SIC Business Insurance Codes for Mortgage Brokers:
  • 6162: Mortgage Bankers and Loan Correspondents
  • 6163: Loan Brokers
NAICS Liability Classifications:
  • 522292: Real Estate Credit
  • 522390: Activities Related to Credit Inter-mediation
  • 522310: Mortgage and Non Mortgage Loan Brokers
Business ISO General Liability for Mortgage Brokers:
  • 61223: Banks and Other Financial Institutions
  • 61226: Office—Other Than Non-Profit
  • 61224: Office—Building Occupied by Business Employees
Common Workers Compensation Class Codes:
  • 8810: Office and Clerical
  • 8772: Outside Sales and Messengers

Should You Ask Your Agent About Lost Key Liability Insurance?

What is Lost Key Liability and Why Might a Business Need It?

Keys are a regular part of most adults life. When we leave the house most people grab their keys, wallet/purse, and cell phone. When a person owns or operates a business that has access to the keys of other people or businesses there is a significant risk the keys may be lost. If those lost keys fall in to the hands of a nefarious person, they can cause a large amount of damage to the owner of that property. These are damages your business will be liable for. One of the best ways to protect a business from this liability is by securing the proper insurance policy.  Lost Key Liability Insurance can help minimize the cost to a business when a keys go missing and a business is held responsible for replacing the locks and keys.

Rack with five sets of keys hanging.

What is Lost Key Liability Insurance?

Lost Key Liability Insurance covers a business or contractor who is responsible for possessing the keys of another person or business. The most common example of a business with this responsibility is a cleaning company. This type of business has employees who use the keys to access the building after hours to performing the cleaning service. If the employee of that business losses the keys, the cleaning business is responsible for replacing the locks and keys for the other person or business. If this is for one lock, it may not be that expensive. If it is for a business that has multiple locks and keys, it could be a significant amount. The cleaning business can protect this risk with a Lost Key Liability Insurance. This type of insurance does not cover criminal behavior committed by employees.

Locksmith prying open a a door.