Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 477

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 477
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 improve compliance with safety procedures and regulations, and through our risk management programs, we educate our staff, subcontractors and suppliers on safety matters.  We strive continuously to assess and improve our safety programs and performance.  We also provide training for other workplace and risk management programs, including for cybersecurity, discrimination and harassment, human trafficking awareness, emergency preparedness and other workplace hazards, among others.

Our business involves the use of heavy equipment and exposure to potentially dangerous workplace conditions.  While we are committed to operating safely and prudently, we are subject to claims by employees, customers and third parties for property damage and personal injuries that occur in connection with our work.  Our insurance policies are subject to high deductibles and we are self-insured up to the amount of the deductible.  We maintain insurance policies for workers’ compensation, general liability and automobile liability that are subject to per claim deductibles.  In addition, we maintain excess umbrella coverage and an insurance policy with respect to employee group medical claims, which is subject to annual per employee maximum losses.  We also manage certain of our insurance liabilities indirectly through our wholly-owned captive insurance company, which reimburses claims up to the applicable insurance limits.  We are required to post collateral to certain of our insurance carriers, generally in the form of letters of credit, surety bonds and cash.  See Note 14 - Commitments and Contingencies in the notes to the audited consolidated financial statements, which is incorporated by reference.

Adverse climate and weather events, including drought conditions and high winds, have increased operational and legal risks in certain locations for us and other contractors.  In particular, wildfire risks associated with electrical power and other infrastructure have increased the potential for liabilities and related costs (particularly as these events can be started by electrical power and other infrastructure on which we have performed services), which could adversely affect our financial results and position.  We procure insurance from the commercial insurance market to cover a portion of such risks; however, limited capacity and high costs in insurance markets have increased our reliance on self-insurance for these exposures with respect to certain geographic areas.

14

Suppliers, Materials and Working Capital 

Under many of our contracts, our customers provide the necessary materials and supplies for projects and we are responsible for the installation of, but not the cost or warranty of, those materials.  Under certain other projects, we purchase the necessary materials and supplies on behalf of our customers from third-party providers.  We are not dependent on any one vendor for project-related materials or supplies required for