members build relationships with surety agents and underwriters and navigate the bonding process effectively. Leveraging ABC Resources for Risk Management ABC offers invaluable resources to help contractors manage risk and navigate the complex insurance landscape: • STEP Safety Management System: ABC’s STEP program helps reduce incidents and improve safety standards. In a region with varied terrain and extreme weather, safety is crucial. • Educational Resources: ABC can provide workshops and seminars to keep members informed about changes in insurance products and regulations. Understanding how the laws in Colorado and Wyoming impact construction can help ensure better compliance and coverage. • Advocacy and Policy Support: ABC’s advocacy efforts help members stay ahead of regulatory changes, such as shifts in workers’ compensation laws, which can directly impact premiums and coverage. Opportunities for ABC Members to Improve Insurance and Surety Outcomes To navigate the evolving landscape of insurance and surety, ABC members can take several proactive steps: 1. Invest in Safety and Training: Implement comprehensive safety programs like STEP to reduce accidents. 2. **Work with Specialized Brokers: Surety and insurance brokers specializing in construction understand our unique regional challenges and can help contractors find the right coverage. They also assist in navigating state-specific insurance requirements. 3. Maintain Strong Financial Health: Surety providers place significant emphasis on a contractor’s financial stability when underwriting bonds. Ensure your financial records are well-maintained and demonstrate profitability, adequate working capital and equity. Collaborate with a CPA experienced in construction to present accurate and transparent financial statements that inspire confidence in underwriters. 4. Focus on Project Management: Effective project management is a key factor in mitigating risk and improving surety outcomes. Use project management software to track progress, control costs and address potential issues early. Demonstrating strong internal controls and project oversight can reassure surety providers of your ability to manage complex jobs. 5. Adopt Technology: Technology can reduce risks and improve insurance outcomes. From GPS tracking to real-time weather monitoring, technology helps mitigate risks and enables better risk assessments for insurers. 6. Understand Local Regulations: Stay informed about state-specific insurance requirements. Conclusion In the Rocky Mountain Region, construction is a key economic driver, but it comes with its fair share of risks. For ABC members, insurance isn’t just a necessity — it’s a strategic tool for protecting against the unpredictable challenges of the industry. By taking a proactive approach to safety, staying informed about state regulations, and leveraging ABC’s resources, contractors can mitigate risk, reduce costs and thrive in an increasingly complex market. **Note: While understanding the insurance/surety landscape is essential for managing risk, it’s important to note that most commercial insurance policies and surety bonds are secured through brokers or agents. ABC members can leverage a trusted network of brokers who specialize in construction to navigate this complex landscape. Jessica Richards, AFSB, is an account executive officer at Travelers in Contract Surety and is about to start her 10th year with the company. She is also a director on the board of ABC Rocky Mountain and has been involved with ABC since 2016, serving in various leadership roles and advocating for the construction industry. Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the official position or views of Travelers or its affiliates. This article is for informational purposes only and does not constitute legal, financial, or professional advice. It provides an overview of general market trends in the construction insurance and surety industries, with a specific focus on the Rocky Mountain Region. Readers are strongly encouraged to consult with their own legal, financial, or insurance/surety professionals for advice tailored to their unique circumstances. The author and Travelers disclaim all liability for decisions made based on the information provided herein. Travelers makes no representations or warranties regarding the accuracy, completeness, or reliability of the information contained in this article. Any reliance you place on such information is strictly at your own risk. In no event will Travelers be liable for any loss or damage, including, without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from the use of this article or the information contained within it. 24
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