Managing Risk Is Critical to SPF Contractors

Spray Foam Magazine – Fall 2026 – Spray foam is an exciting industry to be part of. Contractor opportunities are abundant across the residential, commercial,

and specialty application marketplaces, growing over time as energy costs and environmental concerns surge, building codes become more stringent, and homeowners and commercial users demand a higher performing building envelope. Even so, contractors today face numerous challenges. One that should never be ignored is risk.

Managing risk is critical to safety, profitability, and the longevity of any spray foam contracting business. Yet today, risk is shaped by a variety of factors, including increased project complexity, evolving regulations, potential short-term hazards, rising costs, litigation, and more. Contractors must protect their business by identifying, assessing,

and mitigating threats.

Key items that fall under risk management in our industry are warranty, insurance, owner concerns, safety concerns, public relations, and spray foam and best practices advocacy. Following is a rundown of risk management basics that spray foam contractors should stay on top of.

Insurance: A best practice for spray foam contractors is to have comprehensive general liability, broad form property damage, and personal injury insurance (which should include premises operations, hazard, and contractor liability) as coverage for the business. Auto insurance and protection from tools and equipment theft are also key in this industry.

It is important to take the time to review all policies and to understand any exceptions listed in your policies.

Workers’ Compensation Insurance: Non-compliance with state Workers’ Compensation Insurance requirements can lead to penalties. Businesses can be fined (penalties vary by state) and business leaders can face misdemeanor charges, fines, and more. Civil penalties can include payouts to employees, as well as business leaders potentially being held liable for injuries that occurred while the business was not properly insured. This is a simple risk to avoid as you can easily verify that your policies are in place and up to date annually.

Employing Workers: When employing workers, it is key to follow the law. Employers who don’t may experience criminal penalties. To avoid these risks and penalties, utilize E-Verify, the government’s online system in the U.S., that allows employers to confirm an individual’s eligibility to work in the country.

OSHA & Reporting: In the U.S., the Occupational Safety and Health Administration (OSHA) establishes federal guidelines for maintaining a safe and healthy workplace. There are also additional state plans that supplement and augment OSHA requirements. Generally, OSHA mandates that companies must

(non-exhaustive):

Provide a workplace free from recognized hazards

Conduct regular assessments to identify potential hazards

Provide Personal Protective Equipment (PPE) to employees and ensure they are trained in its proper use and maintenance

Train employees on safety procedures

Develop a written hazard communication plan

Provide employees with Safety Data Sheets (SDS) for all potential exposures

Maintain records of work-related injuries and illnesses

Violation fines start at $16,550 per violation (Effective Jan. 15, 2026, www.OSHA.gov). Willful or repeated violations can face a $165,514 fine, per violation. Always ensure you are in compliance with OSHA regulations.

Importance of Documentation: Documentation in any construction trade is critical. Store, maintain, and archive important documents relative to your business, for at least the legally required minimum timeframe. Contracts, permits, insurance policies, licenses (if applicable), photographs, invoices and quotes, emails and letters, and daily work records are just some of the documents to store. Additionally, leave no question that you informed the homeowner, or other trades, about a project’s safety related requirements. For example, obtain dual signatures on both the contract(s) and the homeowner packet, take photos of posted signage, and add these documents to your project documentation file as a matter of course.

Daily Work Records are a critical source of info should an issue arise later. Best practice is to include these in your daily work procedures. These critical documents include project details such as the products used (including lot numbers), site conditions, and test result data.

Sample testing allows you to monitor the installation in real time and adjust accordingly. On-site testing can help you quickly review product density measurements as well as verify that adhesion and nominal thickness measurements meet project specifications. Having copies of the test results for on-site testing in the project file can save you time and money later.

Training: Employee training is one of the best ways to ensure your installers and team understand current best practices. Maintain a record of all the training each employee has received and ensure all employees are up to date on training in best practices, techniques, and safe installation requirements.

Huntsman Building Solutions, through HBS University (HBSU), offers training courses covering a wide variety of topics.

In Closing

Managing risk can feel overwhelming at times. The HBS University (HBSU) course, Risk Management for the Spray Foam Professional, breaks down strategies into easily implemented action items. The session also includes an overview of useful inclusions to have in contracts as well as acknowledgements, signage, and on-site best practices that help reduce risk.  

ABOUT THE AUTHOR:

Lamia Chahboune is Senior Global Director of Marketing and Risk Management at Huntsman Building Solutions, a global leader in spray polyurethane foam solutions.

Direct any questions or comments related to this article to Huntsman Building Solutions at hbsrisk@huntsman.com.