HBAI Program Partner

Put an Expert in your Corner.

HBAI Program Partner

Our expertise is in helping you implement the proper insurance program to minimize your risk, protect your business and reduce your claims.

Esser Hayes Insurance Group is proud to be an endorsed insurance agency for the
Homebuilders Association of Illinois.
Application for the Esser Hayes and HBAI Residential Homebuilders Risk Program
We understand that on a daily basis, those in the construction industry are met with unique exposures. Therefore, our expertise is in helping you implement the proper insurance program to enhance your coverage and save you money. Our team understands the technical and operational aspects of a diverse array of construction projects and can write projects of virtually any size and scope.
Our goal is to enhance the offering and services to HBAI members and to do this, we have partnered with Hanover Insurance Group to offer the Esser Hayes and HBAI Residential Homebuilder Risk Program
Program offering include:
  • Preferred underwriting for members with limits up to $20 million
  • Exclusive coverage enhancements for both residential and commercial contractor
  • Bonds
    • Performance and Payment
    • Subdivision Bonds
    • License & Permit
    • In-House Bonding up to $250,000
  • Education/Safety Initiatives
  • Safety Seminars
  • Ask the Experts Webinars
  • Offer Perspectives on Insurance Related Issues
  • Contractors Pollution Policy
  • Contractors Errors & Omissions
  • Builders Risk
  • $1000 and $2,500 deductibles will be available and pricing is very competitive.
* Available to all members:   Review Subcontractor agreements / other contracts and offer recommendations
Available to Members who become clients:
Workers Compensation Consulting
  • Cost Containment Programs
  • Aggressive Claims Management
  • Experience Modification Analysis
  • Classification Verification
  • Strategic Consulting
Client Portal
  • Risk Management Tools
  • HR Tools
  • OSHA Compliance – electronic OSHA reporting
Medcor
  • Offers telephonic triage, a pre-claim activity that is changing the way Workers Compensation is handled
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Esser Hayes also offers full service homeowners coverage, personal automobile coverage and individual life and health coverage as well as group coverages for health insurance. Contact Lynn Bergan at lbergan@esserhayes.com or 630-355-2077 for deatials.
Short term and long term disability plans are also available.

CLAIMS
You’ll learn the true meaning of putting an expert in your corner when a claim arises. Our Claim Professionals personal attention to any claims your business encounters. We understand that our clients often need advice, understanding and even advocacy from their broker when reporting a claim. Our expertise is proactively and quickly assisting you through any difficulties in understanding the legalese of your insurance policy and the process that surrounds your potential claim.
Click here to file a claim
VALUE-ADDED SERVICES
Esser Hayes can help build and implement Cost Containment Programs to drive down costs through aggressive claims management (Medcor), experience modification analysis and OSHA reporting (Customized Employer MyWave Portal).
medcor
Medcor- A telephonic triage system that provides a proactive approach to Workers Compensation injuries. This pre-claim activity focuses on preventing unnecessary claims, providing immediate telephonic access to healthcare professionals 24/7/365 for managers and injured employees needing guidance and assistance while still in the workplace. Learn more here.
mywave
Customized Employer MyWave Portal – MyWave online tools provide our clients a suite of optional informative modules: not only easy to use, MyWave OSHA and MyWaveHR can streamline everyday work tasks.
With MyWave you can:
  • Access an exclusive set of comprehensive guides full of federal legislation including COBRA, HIPPA, HIPPA Privacy, Section 125, and FMLA.
  • Download materials including articles, brochures, forms, and charts covering a variety of industry-specific topics.
  • Share resources and information with thousands of industry peers.
  • Access hundreds of insurance, safety, human resources, and wellness Web sites, all from the convenience of your MyWave home page.
  • Access a library of downloadable, industry-related articles, brochures, employee newsletters, forms, and reports covering a variety of insurance related topics – all designed to support your key safety and wellness messages and programs.
  • Access a complete OSHA Log reporting and analysis system.
VALUABLE RESOURCES
osha
OSHA- A government website dedicated to protecting the health and safety of workers. Laws & Regulations, Compliance Assistance and many Free Resources are posted throughout this large site.
www.osha.org
dot
Department of Transportation (DOT)- A large government website with many transportation safety resources and downloads.
www.dot.gov
nsc
National Safety Council (NSC) – The National Safety Council is a membership organization with resources for safety, health and environmental topics. Training materials, products, and publications are available on-line. Additional safety tools can be accessed through a members only area with a paid subscription fee.
www.nsc.org

For inquiries about any of the above services or for a quote, please contact Lynn Bergan at lbergan@esserhayes.com or 630-355-2077

To learn about various coverage options, select from the list below.
Builder’s Risk Insurance Coverage provides temporary property insurance to protect the property while it is under construction against the perils of theft, vandalism, fire, windstorm, etc. Coverage generally starts when the materials are delivered to the job site and normally ends when the house is accepted as complete by the owner or occupied by the owner or a tenant.
Property Insurance for contractors covers your (business owned) buildings, office equipment, building materials, tools, and equipment against loss by fire, windstorm, theft, vandalism, etc.

This policy only provides coverage if the loss occurs on your scheduled premises. Therefore, you must make separate arrangements to get protection for off premises losses to your equipment by purchasing an Equipment Floater and losses to your work in progress by purchasing an Installation Floater (Trade Contractors) or Builders Risk policy (Home Builders and Remodelers).
General Liability Insurance Coverage covers certain lawsuits against the contractor alleging that the contractor´s negligence has resulted in “bodily injury”, “property damage” and “personal / advertising injury” to someone else. Such potentially covered lawsuits can arise out of injuries while the construction is ongoing or many years after the job is finished.
Common examples of potentially covered lawsuits are as follows:
  • Child wanders onto construction site and is injured while playing
  • Worker is digging a ditch and severs a utility line
  • Faulty plumbing results in water damage 1 year after completion
  • Faulty electrical wiring causes the house to burn down 5 years after completion
  • Your Subcontractor installs faulty gas lines that cause the house to burn down
You need to be aware that the Contractors Liability Insurance policy has many exclusions in the “fine print” which may result in no coverage for many types of lawsuits.
Business Automobile Insurance provides liability, uninsured motorists, underinsured motorist, and physical damage coverage for all vehicles owned by you and used in your business.

Even if you do not own a single vehicle under the business name, you still need a policy that is called Non-Owned/Hired Auto Liability. This policy usually costs around $250 per year and protects you against lawsuits where your employee or your subcontractor used their own vehicle to run an errand on your behalf. That’s right, under most state laws any organization for whose purpose the errand is being run (the contractor) can be sued arising out of such auto accidents. Examples of such trips made by employees or subcontractors would be trips to the worksite or to the supply store.

Contractors that own heavy equipment such as cranes, cherry pickers, bulldozers, and front end loaders that are licensed for road use (or are subject to a compulsory or financial responsibility law or other motor vehicle insurance law) must insure such vehicles under a Business Auto policy.
Contractors Equipment Floater Insurance covers your contractor’s equipment and tools that leave your premises and go to the jobsite. Coverage is provided to protect against perils such as theft, vandalism, fire, windstorm, etc. at any location. This policy is called a “floater” because the coverage follows the equipment as it moves in your vehicles or from one jobsite to the next.

In the event that you borrow or rent contractors equipment from others, special arrangements must be made to purchase Non-Owned Equipment coverage. You must inform your insurance agent to add this special coverage since it is not automatically provided under a Contractors Equipment Floater insurance policy.

Coverage for loss or damages to tools and equipment may be provided on a scheduled or unscheduled basis. As a general rule, you should specifically schedule any individual piece of equipment with an Actual Cash Value of at least $1,000. When you schedule a piece of equipment on your policy, you must provide the name of the equipment, manufacturer, year of manufacture, serial number, and actual cash value. On the other hand, individual tools and equipment with a value less than $1,000 may be lumped together under a limit for Unscheduled Tool and Equipment.

Losses to tools and equipment are normally paid on an Actual Cash Value basis. For tools and equipment, Actual Cash Value can be defined as the amount that an identical tool or piece of equipment is available for on the used marketplace assuming similar age and wear and tear. You should take this into account when setting the insured values under your policy.
An Installation Floater is similar to a Builders’ Risk policy in that it provides temporary property insurance to protect the value of labor and materials of the work in progress. This type of insurance provides coverage against damage by theft, vandalism, fire, windstorm, etc. Coverage starts while the materials are in transit to the jobsite and ends once the job is completed or the owner accepts the work.

The primary difference between an Installation Floater policy and a Builders’ Risk policy is in the time period covered. Trade contractors are typically finished in a much shorter range of days than a home builder, so the coverage is specific to a trade and is for a shorter construction period than a Builders’ Risk policy would be.
Workers Compensation Insurance Coverage for contractors and builders pays for “on the job” injuries to employees and uninsured subcontractors of the contractor.
Workers’ Compensation Pays the Following Benefits:
  • Medical bills (past and future) up to an unlimited amount
  • Lost wages (usually based on 66 2/3% of the average weekly wage for the past year)
  • Lump sum payment for permanent disability and disfigurement
  • A death benefit in the event the worker dies
This insurance policy also contains a little used coverage known as Employers Liability, which provides protection against certain rare lawsuits where an injured worker circumvents the Workers Compensation system in an attempt to collect more money.

The cost of workers compensation for builders and contractors is based on a rate per $100 of payroll paid to employees or uninsured subs and varies per the type of work to be performed (ex: framing, interior trim, painting, etc.) Additional factors such as expense constants, experience modification, assigned risk adjustment premiums, scheduled debits and credits, and minimum premiums may impact the final premiums. The final premium of a Workers´ Compensation policy is subject to an audit of your financial and tax records by a representative from the insurance company. Shortly after the annual policy term expires, the auditor will confirm the proper classifications as well as the actual payroll paid to employees and the amounts paid to your uninsured subs.

While not insurance, Contractors License and Permit Bonds are also provided by Esser Hayes. These bonds are required by various governmental entities (cities, counties, states) in order to guarantee that construction is performed to meet the applicable building codes and ordinances. If a building inspector finds that you are not in compliance, a “claim” may be filed against the insurance company that issues your bond. The bonding company will file a lawsuit against you to get reimbursed for the amount they had to pay. Note: The bond really doesn’t protect you; it only protects the homeowner and the governmental entity.

Occasionally, a different type of bond will be required by a project owner (commercial job) or by a homeowner (especially on a large custom house) known as a Performance Bond. This type of bond guarantees that the job will be completed in accordance with the contract with the homeowner. If the job is not completed due to financial reasons (ex: your business becomes insolvent or you become sick or die), the bonding company will find another Contractor to complete the job and will look to you for reimbursement.

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