Business Insurance Can Provide a Solution
Equipment theft on the job site is a common issue for most contractors. According to figures from the National Association of Home Builders and the LoJack Corporation, construction theft accounts for as much as $1 billion dollars’ worth of losses each year.
Contractors and developers have a lot to worry about including cost overruns, subcontractor issues, state and local regulations and much more. Construction sites are frequently vandalized by the theft of machinery, equipment, tools and materials.
Having the right commercial insurance can be a good first step in helping the contractor recover from theft and vandalism on the construction site.
According to LoJack's 14th annual Construction Equipment Theft Study, construction sites can be easy targets because:
- Most job sites have poor security
- Open cabs are easy to access
- One key can fit all pieces of equipment
- Jobsites are often left unsecured at night or over the weekend
- There is a general lack of product identification numbers/records in the industry
The following are a series of loss prevention recommendations designed to minimize or reduce the theft of property from the construction job site.
- Encourage all employees to be security conscious when on the worksite.
- Complete background checks of all employees.
- Contact neighbors to advise what is happening and what you are doing to minimize impact on them.
- The control of keys is essential on a site. Keys should be issued to as few people as possible. Managers should keep a log of who has keys.
- Keep all equipment locked. Storage sheds or fenced areas should be provided on the job site for the secure storage of tools and equipment.
- Lock all vehicles at night.
- Place a fence around the construction site. Hive site well posted; no trespassing.
- Construction equipment should be engraved or marked in at least two obvious and one hidden location.
- Stamp ID numbers conspicuously on all large equipment and keep records of the ID numbers.
- Lighting can be an effective deterrent to theft and vandalism on the site. It is particularly effective in deterring the casual or impulsive offender.
- Make sure all incidents of theft or vandalism are reported promptly by workers and reported to police.