Masonry Magazine April 1987 Page. 37
Surety
are needed to coax the surety underwriters out of their fit of depression. Mark 1988 as the earliest for any reasonable return to an adequate surety market. Possibly, it will not occur until 1989.
Workers' Compensation
Not as volatile as the liability insurance market, contractor workers' compensation costs have continued to increase and are likely to do so in the near term. The various state statutes and the bodies interpreting them continue to extend benefits to those previously not covered. There is no indication this will abate. Some of the prior players in this market are gone or have severely restricted their offerings. Some of the retrospective and dividend plans previously available are difficult to come by, especially for smaller contractors. As a prediction, this market will start to return to normalcy toward the end of 1987, and it should be in reasonably good condition by early to mid-1988.
Renewal Strategies
We are still in a seller's market, which means we may have to "sell" the insurer on meeting our insurance requirements at reasonable prices. Try the following:
1. Start early. If your insurance program renews in 1987, start now working with your insurance representative to present it for renewal, accompanied by complete supporting data.
2. Watch your bids. Anticipate that your insurance costs will be higher in 1987. Face it, they will be higher for your competitors, so do not undercut your costs by assuming insurance costs will increase only modestly.
3. Crank up your loss control and safety efforts. Cut your losses by preventing or reducing them. Underwriters are human (or so it is reported), and they are susceptible to risks that attempt to control losses.
4. Be prepared to accept lower limits, especially in liability coverages. You may have to accept lower limits because of less availability, or you may decide to reduce the limits somewhat in order to reduce what could be escalating insurance costs.
5. Accept greater retentions. Review your net worth to determine whether you can accept the financial impact of larger deductibles. Do not accept larger deductibles unless you obtain corresponding insurance rate reductions for doing so.
A Prediction to End All Predictions
Barring wars, famine, pestilence, rampant inflation, a "give-away" philosophy in the federal and state legislatures, a run-away civil justice system, or sundry other calamities, I suggest 1990 as not only the beginning of a new decade, but also the beginning of a more stable and manageable insurance business. Contractor resistance to overpricing, a good healthy dose of insurer competition resulting in adequate capacity-even over-insurance capacity-and, hopefully, an expanding economy, will enable us to regain some measure of equanimity and reasonableness in construction insurance.
A profession is a personal thing that man acquires. It cannot be inherited. It cannot be bequeathed. Only he who, having made the acquisition, puts to use that knowledge and skill with all his ability and complete dedication of purpose can be truly called a professional.
R. E. ONSTAD
66 ways to tie masonry walls
AA675 is an outstanding masonry reinforcing that provides adjustment up to 2½" when face and back up joints don't line up. This is just one of 66 wire reinforcement and tie systems illustrated in the AA Wire 1987 Masonry Reinforcing Guide. Architects, engineers and builders will find this free guide a valuable tool for selecting the right ties for every wall.
WIRE PRODUCTS COMPANY
6100 S. New England Ave., Chicago, IL 60638
(312) 586-6700
Our 40th Year
AA WIRE PRODUCTS COMPANY
MASONRY-MARCH/APRIL, 1987 37