If your work is based on signed contracts, then you need to look at contractors insurance as part of your risk management strategies. Contractors can get sued by clients who are unhappy with results, but if you have the right insurance policy, your coverage will take care of legal costs.
Best Tips to Get the Most Out of Your Contractors Insurance
Here are essential points to know about getting the most out of your contractors insurance coverage:
The best way to maximize your contractors insurance is to make a list of risks that can harm your company or lead to lawsuits. Then go over this list with an experienced insurance agent, who may know about additional risks in your industry. Once you know what the specific risks are, you can focus on mitigating them by planning responses to disasters.
Plan your response
Explain your risk mitigation strategies to your insurance agent and ask if lowering risks can lower your insurance rates. An example of how a contractor can lower risks is to only hire licensed and insured subcontractors. Other strategies include avoiding high-risk projects and transferring risk to a supplier or other third party.
Mitigating risks should be a priority for any business since it’s better to prevent mishaps than let them unfold and file claims. Keeping claims to a minimum is a good strategy because it can keep your insurance costs steady. You should be aware of your crew’s capabilities and work within your means as far as budget and equipment.
Review your insurance policy carefully and regularly
Not only should you read your policy thoroughly in the beginning, but you should also review it periodically as well. Be aware of exclusions in your policy so that you know what it does and doesn’t cover. Consider purchasing extra coverage to fill any insurance gaps. An umbrella insurance policy can extend coverage limits. Consider adjusting your deductible if you want to adjust monthly rates or the amount you pay to initiate a claim.
Bundle different policies together
Sometimes you can save money by bundling different types of insurance policies together under one provider. If you currently have different forms of insurance under different providers, talk with your agent about the possibility of bundling then do a price comparison. It’s common for an insurance company to carry different types of home, auto, life, and business insurance policies. Bundling is one of the easiest ways to cut insurance costs.
Advertise your insurance coverage
You can gain a competitive edge by advertising your insurance coverage so that others will know you run a professional business. Be prepared to issue a certificate of insurance to clients or partners who want to ensure liabilities are covered. Many firms will not hire contractors that refuse to provide proof of insurance because doing so would increase their own risks.
Get Customized Contractors Insurance Coverage with Artisan Insurance
Make sure you have the proper contractors insurance if you decide to venture into a contracting business. You will attract more high-paying clients if you focus on risk management strategies that lower risks for clients. Contact our team here at Artisan Insurance Solutions for further tips on boosting construction company profit. Our team is ready to help you secure the right coverage for your business.