What is a consequence of maintaining poor safety records in the CMS?

Maintaining poor safety records can significantly impact a contractor's operations and financial responsibilities. One of the primary consequences is the likelihood of increased insurance premiums or even the loss of coverage altogether. Insurers assess risk based on a company's accident history, safety practices, and overall safety culture. A poor safety record indicates greater risk to the insurer, which typically results in higher premiums to offset that risk. In severe cases, insurers may decline to cover a contractor with a history of significant incidents, leading to challenges in obtaining necessary coverage for future projects. This can ultimately affect a contractor’s ability to bid on jobs and operate effectively within the industry.