The Expert Podcast

If you're getting a surety bond or insurance policy for your construction-related business, you may want to look at coverages for job site thefts. There's been a huge spike in construction site burglaries, theft, and materials going missing. It used to be enough to get coverage for damage; if you have a stack of lumber and a forklift drives into it and damages some lumber materials, that should be enough. Nowadays, because of economic problems and increased theft, it's important to have insurance and understand the terms and conditions of your insurance policy.

Most job site material coverage extends a certain number of feet from the actual construction site. So, if you store your materials within 50 or 100 feet, your policy may cover it. However, if you store your materials farther away, they may not be covered. Little things, like where the materials are stored, might make a difference. Also, putting up a security fence around your property might be an expense, but it might keep you from losing hundreds or thousands of dollars.

You don't want to make an insurance claim for a small amount because that could either cause you to lose coverage, get non-renewed, or have a higher premium next time around. Practicing good job site security is crucial. Keep things bundled up and secure. If you have a stack of lumber with banding around it, leave that banding on until you need to start pulling from that lumber pile. If you have palletized paint, leave it shrink-wrapped for as long as you can.

Keeping the items inside a garage, shed, or storage compartment is also a best practice. And certainly, for your tools, make sure you have either a good job site security box or take them with you. If you have a construction trailer with all your tools in it, that's a problem waiting to happen. Thieves can easily steal tools and pawn them for cash.

Getting another pair of eyes on your job site security might be helpful. Your insurance broker can give you some best practices and also tell you what types of claims they're seeing. You want to be aware of new types of theft so that you don't become a victim. Not only do you have to pay the cost of the theft, but you'll likely have to shut down your job site until replacement materials or tools arrive.