Millwright Contractors Insurance Maine Policy Information
Millwright Contractors Insurance Maine. Millwrights install, maintain, move, and repair large machinery, conveyor systems, and other industrial equipment in fixed locations such as airports or factories. They may also dismantle outdated systems into component parts for salvage or disposal.
Millwrights receive the parts to be installed, interpret blueprints and technical instructions for assembling, overhauling, or dismantling the machinery, constructing or supervising the construction of the system being installed, and perform testing and adjusting prior to releasing the system to the customer. Typically, millwrights work closely with the manufacturer of the machinery and with the repair staff at the customer's plant or operation.
The work of a ME millwright contractor is ever-changing. You are constantly maintaining and dismantling all sorts of machines in all types of settings. You have to lift, move, and transport equipment. You add new and innovative tools and techniques to your approach. In other words, there's a lot involved with millwright contracting, and as such, the risks that are associated with this line of work are many.
In order to protect livelihood, your clients, your employees, and your personal assets, having the right type of millwright contractors insurance Maine coverage is essential. Why is insurance so important? What types of coverage do these professionals need? Find the answers to these questions below so you can put the right protections in place.
Millwright contractors insurance Maine protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Why Is Insurance Important For Millwrights?
As a millwright contractor, the very nature of your work is quite demanding. Whether you work in power plants, factories, or any other industrial environment, you are responsible for dismantling, moving, assembling, and installing all types of heavy equipment. It's a line of work that requires extreme precision and there isn't any room for mistakes. Unfortunately, however, despite your best efforts, mistakes can happen.
It's physically demanding and mentally taxing work, which means that mishaps are bound to occur; you could potentially damage a piece of machinery while assembling it or misplace a equipment while it's in-transit, for example. Even if you are lucky enough to never make a mistake, incidents can arise that are completely out of your control.
A client could file a lawsuit against you, stating that you failed to complete the job, for example. Even if the claim isn't true, you will have to contend with legalities. A piece of machinery could malfunction and injury an employee; or, your equipment could be stolen while it's in-transit.
These are just some of the examples of issues that could arise, and all of them are costly. Having to pay for medical expenses, repairs, and legal fees can be beyond exorbitant and having to pay out of your own pocket could put you in financial ruin; but, if you have the right type of millwright contractors insurance Maine protection in place, you can avoid severe monetary losses and keep your business in good standing, even when trouble does strike.
Why? - Because instead of having to pay for legal fees, damages, and other expenses that are related to the risks that are associated with your business yourself, your insurance provider will cover the costs.
What Type Of Insurance Do Millwright Contractors Need?
There are several types of millwright contractors insurance Maine coverage that should be in place to protect their business; however, the specific policies and the amount of coverage that is needed will vary from professional to professional. The specific services you offer, the clients that you work with, and the location where you operate your business out of are just some of the factors that will determine what type of coverage you need. With that said, however, there are certain policies that all ME millwright contractors will need, including:
- Commercial General Liability - This type of insurance provides you with protection against third-party personal injury and property damage claims. For instance, if you damaged a client's equipment and he or she filed a lawsuit, your insurance company would help to cover the cost of legal defense fees, repair or replacement fees, and any additional damages that may be awarded.
- Contractor's Equipment - Also known as commercial equipment insurance, this type of coverage protects the equipment and machinery that you use to perform your job from physical damages that isn't protected under a commercial property insurance policy, such as forklifts, dollies, and backhoes. You invest a lot in your equipment and the cost of repairing or replacing it can be extensive, but with contractor's equipment insurance, you can avoid being hit with huge expenses if your machinery is damaged.
- Workers' Compensation - If you employ a staff of any size, you'll need to carry workers comp insurance, too. This type of coverage covers the cost of any injuries or illnesses that employees sustain while they are on-the-job; for example, if a piece of equipment falls on an employee while she is working, workers' comp will pay for the necessary medical care, lost wages, and even legal expenses, should she file a lawsuit against you.
These are a few of the insurance policies that ME millwrights should carry.
ME Millwright's Risks & Exposures
Premises liability exposure at the contractor's premises is usually limited due to lack of public access. Job site, exposures are very high, as much of the work may have to be carried out during working hours while the customer's employees are on the premises.
The millwright must control access to the area and post signs about the dangers. Electrical voltage must be turned off during installation in order to reduce the risk of electrical burns or electrocution to others entering the area and turned back on after work stops, all while minimizing any disruption of electrical service to other businesses in the vicinity. Unprotected welding can result in bodily injury or set the property of others on fire.
Tools, power cords, and scrap all pose trip hazards even when not in use. If there is work at heights, falling tools, or materials may cause damage and injury if dropped from ladders, scaffolding, or cranes. Pressure-testing boilers, other pressure vessels, and piping present a potentially severe exposure. Any delay caused by the millwright could result in a claim for costly downtime for the customer.
Completed operations liability exposure can be severe. If a machine installed or repaired by the millwright malfunctions, the cost to investigate and litigate the resulting bodily injury and property damage claims could be very high. Not only can a malfunction cause injury to the customer's employees and property, resulting in downtime, but also the customer's products could be faulty due to improper calibration of machine tolerances.
The absence of an aggressive quality control program that documents full compliance with all construction, material, and design specifications may indicate a morale hazard and make it impossible to defend against serious claims. Any changes made by the engineers and carried through in the design must be noted prior to implementation. Hazards may increase in the absence of proper record keeping of work orders and change orders, as well as inspection and signed approval of finished work by the customer.
Environmental impairment liability exposures may arise from the dismantling and disposal of replaced equipment and the use, transportation, and disposal of fuels and related pollutants due to the potential for contaminating air, ground, or water supply. Old air conditioning equipment may contain PCBs. Proper written procedures and documentation of the transportation, disposal, and spill control process are important.
Professional liability exposures arise because millwrights are engineers or have engineers on staff who design machinery or interpret manufacturing blueprints. The exposure increases if the firm fails to conduct thorough background checks to verify employee's education and training, permit other workers to do tasks that only professionals should handle, or if error checking procedures are ignored or are inadequate. All design specifications must be followed and inspections regularly conducted. Documentation must be clear, with changes marked and authorizations signed by both the engineer and the customer.
Workers compensation exposure is extremely high. Falls from heights, crushing from falling objects, and burns from welding can occur on the job site. Back injuries, hernias, strains, and sprains may occur from loading or unloading machinery, setting up parts, or working in awkward positions. Electrical burns are common, and electrocution can occur from the use of high-voltage lines. Slips and falls, foreign objects in eyes, hearing impairment from noise, cuts or puncture wounds, and inhalation of fumes are common.
As the millwright must test any piece of machinery installed, all the hazards associated with manufacturing operations must be considered. If welding must be done in confined spaces, proper ventilation and fire protection are essential to prevent or reduce injury. Workers may encounter "friable" (easily crumbled) asbestos or lead dust in some repair and reinstallation operations. Procedures must be in place to identify and handle these safely. Work on pressurized vessels and process piping presents unique hazards with potentially severe consequences including explosion.
Property exposure at the contractor's premises is usually limited to those of an office and storage for supplies and vehicles. Ignition sources include electrical wiring, heating, and air conditioning systems.
Crime exposure is from employee dishonesty. Background checks should be conducted prior to hiring any employee. All orders, billing, and disbursements must be handled as separate duties and annual external audits conducted. All items should be physically inventoried on a regular basis to prevent theft.
Inland marine exposures include accounts receivable if the millwright bills customers for services, computers (including diagnostic and engineering software), contractors' tools and equipment, including hoists and scaffolding, installation floater, and valuable papers and records for clients' and suppliers' information. While most work with a rigging contractor who hoists the equipment in place before the millwright handles the connections, setup, and testing, some millwrights handle the rigging themselves.
The millwright may rent, lease, or borrow equipment from others, or rent, lease or loan equipment to others, which presents additional exposure as the operator, may be unfamiliar with the operation of the leased or borrowed item. Hazards to machinery, tools, or building materials left at job sites and awaiting installation include theft, vandalism, damage from wind and weather, and damage by employees of other contractors.
Some construction supplies may be target items for theft by third parties or employees. There may be a bailee exposure while the millwright is installing a customer's equipment.
Business auto exposures are generally limited to transporting workers, equipment, and supplies to and from job sites. If vehicles are used to deliver the machinery, special modifications or built-in equipment such as lifts and hoists for large items may be awkward and require special handling and tie-down procedures. Drivers should be properly trained to prevent overturn and to navigate through high traffic areas.
Serious property damage or injury to employees of other contractors, passing pedestrians, or motorists can arise during loading and unloading equipment and materials. Long drives with oversized equipment may lead to driver fatigue and resulting accidents. For long-term projects away from home base, personal use of company vehicles poses a concern. Similarly, employees may use their own vehicles on company business for long periods, especially to transport crews to the jobsite.
All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and the records kept in a central location.
ME Millwright Contractors Insurance
To find out what other millwright contractors insurance Maine policies you might need, and what limits you should consider - speak to an experienced ME business insurance broker.
Maine Economic Data, Regulations And Limits On Commercial Insurance
You have a great idea for a business and you have developed excellent products and services that you are certain people will benefit from. You've also developed a viable business plan. Now you need to choose a place to start your company.
In order for your company to be as successful as possible, you need to choose a location that offers a favorable market for your specific business. After all, if the area doesn't offer a job force to support your operation or a target market that will purchase your products and services, you likely aren't going to succeed.
With that said, if you are thinking about starting a business in Maine, having an understanding of the state's economic trends is essential. It's also important to know what type of commercial insurance you'll need to carry. Below, we offer an overview of this information so that you can determine if ME is right for your business.
Economic Trends For Business Owners In Maine
Unemployment rate is a good indicator of a state's economic climate. The lower the rate, the more opportunities exist for business owners, as it suggests that there are ample job opportunities, and the more job opportunities, the more successful businesses there are in the region.
As per the Bureau of Labor Statistics, the unemployment rate in the state of Maine was 2.9% in December, 2019; that's 0.6% lower than the national average, which was 3.5% at the same time.
Additionally, according to economists, more employment opportunities are expected in the coming years, which will further reduce the unemployment rate.
While locations throughout the state offer opportunities for business owners, there are certain locations that are ideal for entrepreneurs. These locations include:
- Bar Harbor
These cities are the largest in the Pine Tree State, so it's understandable why they offer the best opportunities for businesses. While Maine is home to multiple industries, there are specific sectors that do particularly well here, including:
- Finance and insurance
- Hospitality and tourism
- Information technology
- Professional services
- Real estate
Therefore, if you are considering launching a business in any of these industries, Maine is likely a good location for your company.
Commercial Insurance Requirements In Maine
The Maine Bureau of Insurance regulates insurance in ME. Maine mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Maine requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. Independent contractors do not count as employees, but if those contractors employ subcontractors, the subcontractors must be covered by a workers compensation policy.
Maine also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Construction Contractors Insurance
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how business insurance can help protect your construction business from lawsuits.
- Demolition Contractors
- Foundation Layers
- Surety Bonds
Construction contractors have substantial needs for many types of insurance coverage. Most would point to the importance of coverage for completed operations, premises liability coverage during construction operations at jobsites and professional or design errors and omissions insurance.
Such coverages can be provided only when the interests of the contractor and of the property owner are understood; particularly the contractual obligations assumed by the contractor. Next in significance is the workers compensation exposure followed by business automobile. Inland marine coverage for expensive mobile equipment, supplies, other tools of the trade and builders' risk can be vital.
Liability coverage is needed by a construction contractor in order to obtain most jobs. In addition, if a contractor wants to stay in business, it must be obtained to protect it from lawsuits due to its premises operations, off-site locations and products/completed operations exposures. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to meets its obligations for particular jobs.
Many construction contractors do not have the usual location-specific buildings and business personal property exposures. Their business property is more mobile and, therefore, better covered with inland marine coverage forms. However, for those larger construction contractors that own buildings and/or maintain business inventory there are many coverage forms and choices available to them.
Construction contractors use their vehicles to get to and from their workplaces and jobsites. They also use vehicles to transport equipment and inventory to those locations. It is important to cover the liability of these vehicles for injury or damage they may cause, as well as to provide coverage for damage to the vehicles themselves.
Employers are required to provide coverage for injuries sustained by their employees while on the job. Construction contractors must comply with these requirements but some try to avoid them by hiring subcontractors. These subcontractors may actually operate and qualify as employees. The relationship between a contractor and its subcontractors must be carefully evaluated in order to determine if workers compensation coverage is still needed.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Surety Bonds, Accounts Receivable, Builders' Risk, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Business Automobile Liability and Physical Damage, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Contractors' Equipment, Goods in Transit, Installation Floater, Cyber Liability, Employment-related Practices Liability, Environmental Impairment Liability, Stop Gap Liability, Unmanned Aerial Vehicles (UAV) (Drones).
Request a free Millwright Contractors Insurance Maine quote in Arundel, Auburn, Augusta, Bangor, Bar Harbor, Bath, Belfast, Berwick, Biddeford, Brewer, Bridgton, Brunswick, Bucksport, Buxton, Camden, Cape Elizabeth, Caribou, Casco, China, Cumberland, Dexter, Dover-Foxcroft, Durham, Eliot, Ellsworth, Fairfield, Falmouth, Fort Kent, Freeport, Fryeburg, Gardiner, Glenburn, Gorham, Gray, Greene, Hampden, Harpswell, Hermon, Hollis, Houlton, Jay, Kennebunk, Kennebunkport, Kittery, Lebanon, Lewiston, Limington, Lincoln town, Lisbon, Litchfield, Lyman, Madawaska and Wiscasset, Madison, Millinocket, Monmouth, Naples, New Gloucester, North Berwick, North Yarmouth, Norway, Oakland, Old Orchard Beach, Old Town, Orono, Orrington, Oxford, Paris, Pittsfield, Poland, Portland, Presque Isle, Raymond, Richmond, Rockland, Rumford, Sabattus, Saco, Sanford, Scarborough, Sidney, Skowhegan, South Berwick, South Portland, Standish, Topsham, Turner, Vassalboro, Waldoboro, Warren, Waterboro, Waterville, Wells, Westbrook, Wilton, Windham, Winslow and Farmington, Winterport, Winthrop, Yarmouth, York and all other cities near me in ME - The Pine Tree State.
Also learn about Maine small business insurance requirements for general liability, business property, commercial auto & workers compensation including ME business insurance costs. Call us (207) 401-4779.