In today’s world, there are still many contractor businesses that either have minimal or no insurance. Working in the contractor industry is relatively high risk. There are multiple liability risks to be concerned about. While you may have a solid safety system in place that you rely on, an incident may still occur. Your business could be responsible for thousands of dollars' worth of damages and fines if you don't have the necessary insurance.
It's recommended that you assess quotes from multiple insurance carriers before selecting a policy. You are encouraged to activate your policy as soon as possible. It's important to have active coverage in place before starting your next project. A significant delay due to lack of coverage may cause you to miss out on a lucrative project.
While searching for contractor insurance, your agent will sit down with you and review the potential risks on the job. Having a good understanding of your business risks and requirements should help your agent find a custom policy that aligns with your needs. Your insurance requirements may change as your business evolves over time.
Finding the right contractor insurance terms is especially important if you follow a budget. Inquire about bundling coverages. Perhaps your agent can help you find a policy that combines liability, workers' compensation, and professional liability coverage. It's recommended that you avoid purchasing an insurance policy simply because of its low price. The policy will likely include low levels of coverage that will leave your business exposed if a major liability incident occurs on the job.
Many contractor businesses utilize subcontractors to help complete tasks. If your business relies on subcontractors to complete tasks, you'll need to find a policy that covers subcontractor work. It's recommended that you choose a contractor that offers flexible policies. Some insurance carriers do not include liability coverage for subcontractors in contractor insurance policies. Others may ask you to pay an extra premium in exchange for covering subcontractor work in your contractor insurance policy. Also, be aware that your coverage may be impacted if your subcontractors have their own insurance.
Many contractor businesses have paid higher premiums than they should have and have been vulnerable to potential lawsuits due to misclassification. Look for an insurer that offers full transparency. Misclassification can jeopardize your entire business if you're involved in a liability dispute.
One of the most important contractors insurance tips is providing your insurer with accurate payroll and revenue information. This helps your insurer figure out the appropriate level of liability insurance to include in your policy.
It's recommended that you purchase contractor insurance from an insurance company with an established track record of providing great service. Ask some of your peers in the industry if they have any recommendations regarding different insurance companies. Resources such as the Better Business Bureau are also available to help you learn information about the best contractor insurance companies.
Use these contractor insurance tips as a guide to help you find the right policy for your business. Contact our team here at Fuller Insurance Agency if you have any questions, and we will assist you with your insurance needs.