Risky Business

November 4, 2024

It’s a risky business. With an average margin of just 6%, contractors have little to no room for project failures. So, how can they mitigate risks to protect their business? That was the focus of the recent presentation by Merchants Bonding Company’s Chief Underwriting Officer David Hewett. Speaking to American Contractors Insurance Group (ACIG), a contractor-owned insurance company, Hewett provided perspective on contractors’ risks, as seen through a surety lens, as well as actionable ways to mitigate those risks.

Key takeaways for contractors:

-          Thoroughly vet new clients’ financial health and payment history

-          Focus on core competencies, don’t overextend without a clear strategy

-          Adopt comprehensive cash flow management strategies

-          Aspire to controlled growth

Providing continuing educational support and sharing our expertise is one of Merchants’ pride points and an ongoing commitment we make to the surety industry and our valued partners.