CEMENT CONTRACTORS
Category: Contractors - Construction

SIC CODE: 1771 Concrete Work
1622 Bridge, Tunnel, & Elevated Highway Construction
1799 Special Trade Contractors, NEC
1611 Highway & Street Construction, Except Elevated Highways

NAICS CODE: 238990 All Other Specialty Trade Contractors
238110 Poured Concrete Foundation and Structure Contractors
237310 Highway, Street, and Bridge Construction

Suggested ISO General Liability Codes: 91560, 92215, 95505, 91266, 99507, 99321

Suggested Workers Compensation Codes: 5213, 5215, 5221, 5222, 5223, 5506

Description of operations: Cement and concrete construction operations involve the pouring of concrete into forms (wooden or metal molds) at the job site to produce a wall, foundation, basement, sidewalk, parking lot, or roadway. Concrete may be mixed in transit or at the site and consists of aggregate (sand and gravel) and cement (the binding agent) plus water. Many contractors specialize in flatwork such as driveways and sidewalks, or various types of structural work, which may vary from foundations and footings to walls and bridge decking. The site must be cleared, leveled, and forms laid to the size and shape of the construction. Mesh or reinforcement bars (rebar) may be placed in the form, and the cement or concrete is mixed and poured. The cement or concrete must then cure (be kept moist so it dries slowly to maintain its strength), harden and dry.

Property exposures at the contractor's own location usually consist of an office operation, material, equipment and vehicle storage. There may also be a contractor’s yard with large mixing or batch plants to combine the ingredients and to load them into the trucks. They have a low susceptibility to damage.

Inland marine exposure involves the contractors’ equipment. Much of the machinery and equipment is heavy, large specialty equipment that has unique transport exposures. The training of drivers and haulers, especially with respect to the loading, tie-down, and unloading, is an important area to evaluate.

Equipment hazards that arise during the actual use of the equipment in construction may come from the uneven terrain at job sites, from the abrasive or caustic nature of some of the materials, or especially from the sheer weight of the concrete as it may affect the equipment's load capacity.

Tools and equipment may also be subject to dropping and falls from heights, or being struck by other vehicles. The concrete forms can be attractive for theft due to a lack of identifying marks and the necessity of leaving them overnight or longer at a site. The primary hazards are vandalism and theft.

Premises liability is another area of high concern. Wet cement is well known as an attractive nuisance hazard to children, but the hazards to the public or to employees of other contractors can also be significant, particularly in structural work. Due to their weight, large mixers and mix-in-transit vehicles can cause serious injury or property damage. Hazards increase significantly in the absence of job site control, including spotters, signage and barriers where appropriate.

Completed operations is another major area of potential loss exposure. The designer and engineer of the project, the type and quality of materials, the mixing process and the construction details are all critical. Quality control and full compliance with all construction, material, and design specifications are necessary, as is documentation of customer specifications, work orders, change orders, and inspection and acceptance by the customer. The mixture of the cement and concrete and the materials used to harden and cure must meet all specifications.

Automobile exposures have catastrophic potential since mix-in-transit units are among the heaviest on the road. They can cause severe injury or damage even in apparently minor collisions. Because of their compactness and weight such units are difficult to tow if they get driven into a ditch or stuck in mud at a job site or flip over. Age, training, experience, and drivers’ records, as well as age, condition, and maintenance of the vehicles, are all important items to consider. Mix-in-transit trucks are extremely awkward to handle both on the road and while pouring, and require special training to prevent over turn.

Workers compensation has many high potential loss opportunities. From the excavation of piling or foundations, whether in land or water, to the laying of the structure and completion of the final project, frequent and severe losses can occur. Any time work is done above water or above ground, injury or death from falls, drowning, or being struck by falling objects can occur. Common injuries may arise from work with tools, strains and lifting injuries, while fine sand from the aggregate may cause eye injuries or even lung disease such as silicosis. Complications from the large, heavy machinery and their use, misuse, maintenance and transport have unique hazards that need review. Pouring mix concrete from a mixer usually involves operations on top of the vehicle so the absence of proper guarding may significantly increase the hazard.

Minimum recommended coverage:

Business Personal Property, Contractors’ Equipment, Employee Dishonesty, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Nonownership Auto, Stop Gap Liability, Workers Compensation

Other coverages to consider:

Building, Business Income with Extra Expense, Computers, Employment Related Practices Liability, Directors and Officers – for profit, Environmental Impairment Liability, Federal Employers’ Liability Act (FELA) Workers Compensation