Ben Morey of Morey Construction understands that purchasing insurance is hard for general contractors —and even harder for subcontractors. The owner of this design/build business in Signal Hills, Calif., asks his insurance company for quotes for his subcontractors. So far, three subs have signed with his carrier. “We do this for subcontractors that have worked with us enough for us to say this is a good person, and we want him or her to be involved with our company,” he says.

Since Morey is a long-standing customer, the subs reap the benefits of his buying power with the insurance company. “It's good for them in that they are covered, and it's good for us in that we don't have to worry they are on our jobs without coverage,” Morey says.

He does not stop there. He asks the insurance company to let him know when the subcontractor falls behind on payments, so he has the opportunity to help the sub before his or her coverage is cancelled. “If they don't have cash to pay the next payment, we'll pay it and subtract it from the job invoice of what we owe them,” Morey says.

Earlier this year, he purchased another construction business and is using this perk to help recruit subcontractors. He tells them the benefit is part of the overall package in working with his companies.

“It's not just about dollars and cents — we help them become legitimate businesses,” he says.

Morey hopes to parlay his recruitment of new business for the insurance carrier into a discount on his own insurance costs.