More than insurance: How Federated’s risk management keeps contractors profitable and protected
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Federated Insurance® was established in 1904 by association members in Minnesota who were seeking more affordable insurance coverage, tailored to meet the needs of their specific industry. More than a century later, the company still operates from the same basic principle, serving as an association-member benefit, and intentionally working through association partnerships to serve contractors in HVACR, plumbing, electrical, and other construction trades. From its Owatonna, Minnesota headquarters, Federated has maintained its mutual company structure while building a substantial contractor base through industry partnerships.
Contractor Shield® program addresses diverse contractor needs
Federated’s flagship contractor offering is Contractor Shield®, an insurance program developed with input from contractors across multiple trades. The program recognizes that contractors face exposures that don’t always fit into standard commercial insurance coverages, like HVACR technicians navigating refrigerant regulations.
Core coverage includes essential contractor protections
- Property and casualty insurance
- Workers’ compensation coverage
- Life and disability income protection
- Contract and surety bonds
Additional coverage options address trade risks
- Business errors and omissions liability
- Contractors’ equipment and tools coverage
- Job site pollution liability
- Self-insured retention programs
- Cyber liability protection
Service model emphasizes hands-on contractor relationships
Federated’s direct client service model allows field representatives, who understand contractor operations, to work directly with clients. David Lawrence, owner of Dense Mechanical in Enid, Oklahoma, illustrates how this approach works. His company receives monthly visits from a Federated risk consultant who conducts job site risk assessments.
“We have a close relationship with Federated Insurance, and once a month, we meet with our senior risk consultant and go to job sites to assess safety practices,” Lawrence explains. Dense Mechanical has implemented risk management protocols, including annual driving record screenings, strict hands-free cell phone policies, and regular safety training sessions developed with guidance from Federated’s consultants.
This hands-on approach extends across Federated’s contractor client base, with representatives who understand the operational risks different contractor segments face.
Field support tailored to your business risks
- On-site risk assessments for contractor operations
- Written safety program templates customizable for different trades
- Claims support from adjusters who understand contractor work
- Active presence at contractor trade shows and industry events
Risk management and training resources
Federated provides risk management support designed to help contractors reduce claims and improve workplace safety through digital and personal service channels.
mySHIELD platform delivers online resources
The company’s online portal provides contractors access to risk management resources for their operations. This includes:
- Training modules for different contractor trades
- Customizable safety manuals
- Risk assessment tools focused on common contractor hazards
- Educational resources and best practices library
Educational programs address contractor safety challenges
- Monthly webinars covering topics relevant to ACCA members contractors
- Risk Management Academy seminars for different trades
- Programs that address specific industry risks, like distracted driving prevention
Recognition program highlights safety excellence
Federated sponsors industry recognition programs, including the annual ACCA Super S.T.A.R. Award for HVACR contractors. Lawrence’s Dense Mechanical received the 2025 ACCA award, which recognizes safety excellence and promotes the value Federated can bring to the contractor-insurer partnership. The recognition programs highlight successful risk management practices that can reduce claims across their contractor client base.
Current initiatives target major contractor loss areas
Federated’s 2025 priorities reflect common sources of contractor claims across all trades. The company is expanding driver safety programs, recognizing that vehicle accidents represent a major portion of contractor losses. In addition, enhanced workplace safety protocols address on-site injuries, while fire prevention and natural disaster preparedness programs respond to growing environmental risks.
Federated’s mutual structure allows the company to invest in services that contribute to long-term loss reduction across its contractor client base.
Market position balances contractor focus with broad resources
Federated offers knowledge of contractor operations across multiple trades while maintaining the financial resources to handle substantial claims and provide coverage options.
For contractors evaluating insurance options, Federated becomes a top choice in considering how they understand the challenges contractors face in their daily operations. This sets Federated apart. The company’s association-based approach provides insight into emerging risks affecting different contractor segments while creating pressure to develop new coverage options as various trades evolve.
Getting started with risk management training
Federated encourages contractors to create a culture of risk management within their businesses through the complimentary Federated Insurance Risk Management Academy℠. The training focuses on different contractor trades and helps contractors prevent losses that impact their bottom line while connecting them with industry peers facing similar challenges.
The Risk Management Academy provides training to equip contractors with the knowledge and skills needed to effectively manage risks in their operations and gives practical strategies that contractors can apply immediately to improve safety and reduce claims.
Scan the QR Code to learn more and register or contact a Risk Management Resource Consultant by calling (800) 533-0472 or visit federatedinsurance.com.
Posted In: Corp Partner Spotlight, Corporate Partner News, Insurance, Partner News
