Crime, Theft, and Construction Insurance

As a contractor, you realize that the difference between making a profit and sustaining a loss on a job can often relate to your ability to control theft and vandalism on the site.
When losses occur due to crime or theft, you’ll need the protection of construction insurance tailored to meet this specific type of risk.

In the meantime, here are some suggestions on efforts to control job site security and assistance in identifying major sources of crime losses and implementing the measures for controlling these losses.

Establishing general safety guidelines

  • Create and post a written security policy
  • Develop a job-site security plan
  • Assign supervisory security responsibilities
  • Encourage security awareness among all workers
  • Require prompt reporting by workers of incidents of theft and vandalism
  • Report all losses to the police immediately, and
  • Maintain complete records of all security incidents

On-Site security measures

Provide for limited access to the site at all times, preferably with lockable gates. Check out the site at the end of each day before securing it, and whenever possible, you should enclose the job site with a security fence and provide for nighttime lighting of the site.

Use only high-quality locks, and never leave keys in locks, or leave locks in an open position. It is also a good idea to post warning signs to keep unauthorized persons off the site. If it is within your budget, consider the use of security guards and have them patrol the site on designated rounds.

Secure all equipment, tools, and materials

Consider utilizing a secured area within the site for equipment storage and maintain an inventory control system for all equipment, tools, and materials. Mark all tools and equipment to allow for easy identification. You might also want to establish a program for verifying all deliveries.

While this should greatly help reduce theft and crime, when items do go missing you will be happy that you purchased the proper construction insurance, which can help cover the replacement costs.


photo credit: Alpstedt cc