Learn why it is essential for contractors to comply with building codes.

Read about the connection between insurability and enhanced building codes.

Competition drives progress and innovation, and quality separates the wheat from the chaff. The contracting world is highly competitive, so much so that cutting corners and low-balling expenses to get jobs is a familiar practice of some contractors. It’s not a good operating code for any contractor. At a bare minimum, contractors should adhere to state and local building codes. Even so, it won’t be long before the insurance industry advocates strongly for enhanced building codes. Let’s break it down, from the big bucket to summarized detail, followed by what’s next.

Two big bucket questions cut through the either/or dilemma.

1. Are building codes a nuisance or a necessity?
2. Do building codes add cost or value?

The true answers to these questions aren’t one or the other, but they also are not in the middle. Rather, experience and common sense both weigh heavily on the sides of necessity and value over nuisance and cost. A modern society needs building codes that have value which exceeds the cost to implement. Next, let’s review the purpose of building codes, using CODE for ease of presentation.

Compliance	–	Serve as a map to get from here to there using standard regulations, procedures, and rules proven to promote safety.
Obligation	–	Think of this as contractors’ code of ethics, i.e. your duty to operate above board for the good of your customers, the reputation of your contracting business, and contribution to the general community.
Defense	–	Depending on the nature of the contracting work, codes are designed to mitigate fire and water damage; provide structural integrity; regulate the use of certain building materials associated with health issues.
Essential	–	In general, building codes prioritize the safety, health, and general welfare of the community.

Bad things happen when building codes are ignored. In short, property damage and bodily injury, both of which are front-and-center concerns for insurance companies. Code compliance by contractors affects insurance pricing and risk assessment, both for individual contractors and for the class of contractors as a whole.

Something else pivotal is happening everywhere that will require building code updates. That something else is mounting claim experience in the last decade that is directly tied to wreckage from more frequent and more severe weather events. While Ohio is no slouch in adopting and enforcing building codes, it is not immune to the growing inland risks of severe windstorms and wildfires. The follow-on to this is going to be stronger, across-the-board building codes that enhance resilience and reduce recovery time and cost. The insurance industry is likely to drive this effort. Insurability is sustainability, and updated building codes will play a key role in achieving both.

Richey-Barrett Insurance is your Trusted Choice Independent Insurance Agency for contractors’ insurance.