At MJ, construction insurance and surety bonds aren’t just specialties—they’re ingrained in our legacy. With a proud 60+ year history in the industry, we focus on understanding the needs of contractors and builders so we can craft tailored strategies for construction risk management.
Drawing on our industry knowledge, our dedicated construction and surety team can help you address significant workers’ compensation, auto, and liability premiums and even take your insurance beyond a necessary cost to a strategic asset.
CONSTRUCTION INSURANCE SOLUTIONS
Every successful construction project is a delicate balance between labor, materials, and insurance. We exist to help untangle the complexities of insurance to help keep this often daunting expense under control while helping to meet the exact needs of your business.
With our collaborative, data-driven approach, we develop comprehensive solutions that manage risk, safeguard your assets, ensure financial stability, protect the good health and morale of your employees, and achieve sustainable growth.
SURETY BOND SERVICES FOR CONTRACTORS
Our surety consulting team delivers unparalleled, rapid-response surety bond service that aligns with your needs. We help protect you and your business by providing expert assistance with contract review, onerous bond forms or contract provisions, financial statement analysis, subcontractor prequalification, succession planning, joint venture formations, and more.
Our team helps you maximize your surety bond program with the best terms possible. Because we’ve built key relationships across all layers of the surety industry, we remove the uncertainty associated with the surety underwriting process and build a foundation for long-term success.
CONSTRUCTION CAPTIVE INSURANCE OPTIONS
A captive offers a different approach to one of your biggest business expenses by creating a stronger connection between risk management, safety performance, and financial outcomes. When managed effectively, captives can provide long-term stability and greater control over the claims process. Many organizations find the value of a captive extends beyond insurance by helping to strengthen your safety culture and support your long-term business objectives.
Captives aren’t the right fit for every organization, but they may be right for your construction business if you have a strong commitment to safety, entrepreneurial leadership, and a history of consistent operational performance. And because captives are a peer-owned, collaborative solution, you share expertise and collaborate on strategy with other exemplary contractors who can strengthen your business.
LEVERAGING DATA FOR FUTURE-FOCUSED DECISIONS
In a high-risk industry like construction, having the right information is paramount. That’s why APERTURE®, our proprietary analytics tool, is the heart of our collaborative consulting process. APERTURE brings together data from across your business to show you the connections you couldn’t see otherwise. Our construction and surety consulting experts help you find the actionable insights in your data so you can identify opportunities, manage risks, and make well-informed decisions.
Our risk management and MJ Benefits+ teams work collaboratively to uncover even greater opportunities for your success. Together, we’ll explore innovative strategies, devise customized solutions, and find the best path forward to achieve your goals.
EFFECTIVE STRATEGIES FOR SAFETY
In our experience, a robust culture of safety is the bedrock of organizational stability and profitability. Contractors choose MJ to help build their safety culture because we recognize that every operation is unique, and we specialize in crafting safety strategies that draw on best practices while addressing each client’s particular challenges.
A big part of a strong safety culture is keeping employees healthy, supporting their wellbeing, and protecting their futures. Our consulting services help you optimize your risk profile and design solutions that enhance your efficiency, productivity, and overall success.
CONSTRUCTION EXPERTISE THAT GOES BEYOND INSURANCE
At MJ, we help construction leaders evaluate risk from every angle. Our team works alongside clients to strengthen safety performance, support their employees, protect their assets, and find the risk-financing strategies that align with their long-term goals.
Because the right risk strategy shouldn’t just protect your business—it should help strengthen it.
OUR COMPREHENSIVE SERVICES
- Designing robust risk management strategies tailored to the construction industry
- Evaluating and implementing alternative construction insurance solutions like captives
- Crafting employee benefits plans to attract and retain top talent
- Implementing safety initiatives and comprehensive coverage to protect your workforce and assets
- Addressing supply chain challenges and optimizing operations
- Assisting with compliance to meet industry standards and regulatory requirements
- Advocating on your behalf in the event of a claim, ensuring a seamless process
- Offering risk transfer options to optimize cost-effectiveness
- Implementing holistic approaches to reduce workplace injury costs
- Creating customized wellness plans that forecast future costs and prioritize employee wellbeing
- Providing ongoing support and guidance to help you navigate the complexities of total rewards management
- Developing financial planning and retirement solutions to help secure your employees’ future
Frequently Asked Questions
What is construction risk management?
Construction risk management is the process of identifying and mitigating financial, safety, and legal risks on a job site. It typically means implementing safety programs, choosing the right insurance coverages, and using well-structured surety bond contracts to shift liability from your business.
What is a surety bond?
A surety bond is a three-party agreement that guarantees a contractor will fulfill their obligations according to the contract terms. The surety company guarantees the project owner that the contractor will perform the work and pay subcontractors and suppliers. If the contractor defaults, the surety steps in to resolve the claim up to the bond amount.
What is the difference between bid, payment, and performance bonds?
- Bid bonds guarantee that if a contractor wins a bid, they will enter into the contract and provide the required performance and payment bonds.
- Performance bonds guarantee that the contractor will complete the project according to the specifications, plans, and contract terms.
- Payment bonds guarantee that the contractor will pay subcontractors, laborers, and material suppliers, protecting the owner from mechanics’ liens.
How do contractors qualify for surety bonding?
Surety companies evaluate contractors based on the three Cs of underwriting:
- Character: Your professional reputation, credit history, and track record of completing projects successfully.
- Capacity: Your technical capability, equipment, manpower, and organizational structure to execute the job.
- Capital: Your financial strength, including corporate net worth, working capital, available bank lines of credit, and overall financial liquidity.
When do contractors need performance bonds?
Contractors typically need performance bonds when bidding on public works projects, where they are mandated by law. Private project owners or lenders may also require them on large-scale commercial developments to protect their financial investments.
How can construction companies reduce insurance costs?
- Implement strict safety programs: Lowering your experience modification rate (EMR) directly decreases workers’ compensation premiums.
- Improve contract risk transfer: Ensure your subcontracts contain robust indemnification clauses and require subcontractors to name you as an additional insured.
- Consolidate with an industry broker: Partnering with a specialized construction risk broker allows you to bundle coverage and access proprietary markets.
What insurance does a general contractor need?
- General Liability: Covers third-party bodily injury, property damage, and completed operations claims.
- Workers’ Compensation: Mandated by law to cover medical costs and lost wages for injured employees.
- Commercial Auto: Protects vehicles owned or used by the business during operations.
- Inland Marine (Builder’s Risk/Equipment Floater): Covers structures under construction and tools or heavy machinery in transit or on the job site.
- Professional/Pollution Liability: Protects against design errors or environmental contamination risks during excavation or construction.
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You deserve a partner who understands your unique needs. You deserve a partner like The MJ Companies.
