contractual risk transfer, construction insurance quote, contractor controlled insurance policy

Subscribe to Our Free E-Newsletter

Sign Up! Learn about cutting edge techniques and strategies to lower your risk and become a safer and more profitable contractor.

Total Cost Of Risk


These three factors affect your Total Cost of Risk (TCOR):

(Copyrighted material of Sitkins International)

Preventive Cost

Direct Cost

Indirect Cost

Safety and risk management

Transportation expense

Employee turnover

Pre-employee screening

Production decrease and downtime

Reputation with insurance companies

Preventive process and procedures

Product or equipment loss

Vendor/supplier turnover

Website analysis and review

Replacement of first aid supplies

Senior management

Safety systems

OSHA fines

Loss of market share/market shift

Safety reengineering

Consultant fees

Business failure of vendors or customers

Culture evaluation and management

Blood born pathogen issues

Warranty losses

Insurance premiums

Employee theft

Employee watching and discussing accident or events

Wellness programs

Market shift


GPS asset tracking and monitoring

Self insurance deductibles

Loss of reputation

Disaster recovery plans and systems

Self insurance gaps in coverage


New hire orientation

Additional productivity loss of other workers


Safety manager salary, expenses, taxes, etc.

Legal expenses


Personal protective equipment

Loss of productivity after accident


Safety assistant salaries, expenses, taxes, etc.

Management time to administrate injury activity


General safety meetings

Other employees time to administrate injury activity


First aid supplies

Active claims process


Facility capital improvements for safety

Legislative updates/changes


Maintenance and repair of safety equipment

Under value building/property value


OSHA preventive compliance costs

Certificate of insurance management


Safety committee time

Injured time


Supervisor prep time for training

Medical visits while on light duty


Annual reviews of TCOR systems

Decreased productivity while on light duty



Supervisor rescheduling and training


Loss prevention and loss measure

Office preparation of reports and managing the loss


Legal expenses

Reactive safety activities


Vendor service plan

Overtime required


Technology updates

Medical paid by employer


Continued education

Clean up costs


Cost of time on toolbox talks

Prescription costs


Cost of materials for toolbox talks

Accounts receivables