Drug free workplace credits may be available in exchange for the implementation of a formal drug free workplace program. For example, in South Carolina, a 5% discount is available for employers that can prove that they have a qualifying substance abuse policy statement, employee notification of the program, testing procedures including random drug testing, and confidentiality protocol. The insurance carriers usually don’t offer this credit for builders that are general contractors due to the near impossibility in enforcing these compliance requirements on the subs. In addition, you need to take into account the costs to implement and administer the program.
Deductible progams may be availabe that result in small discounts on your overall premium in exchange your taking on certain out of pocket deductible amounts. However, very few builders opt for deductible programs as the discounts tend to be very small in exchange for the risk that must be assumed out of pocket. For example, in South Carolina, a $1,000 per claim deductible only results in a discount of 3% of premium.
Also, insurance carriers have the ability to give scheduled credits on a discretionary basis to policyholders that exhibit excellent loss records, have low experience modifications, and documented management controls such as safety programs. For example in South Carolina, state law allows Workers’ Compensation carriers to give either scheduled credits or debits up to 25%. The insurance carrier underwriters are not always willing to give these discretionary credits and tend to reserve them for larger accounts or for when there is a lot of competition in the market place.
And finally, do business with an insurance agent who specializes in insuring builders. An insurance agent who has a large book of builder business should represent several carriers that will offer you options. No one insurance carrier can meet the needs of all builders. At different points in time, different carriers run hot and cold on their competitiveness. A good agent will keep you informed about what is going on in the marketplace for builder insurance and will offer a renewal quote with a different carrier if your carrier is no longer price competitive.