Consider the Risks of High and Low Contractor Deductibles
Having the right contractors insurance in Los Angeles, CA is an important part of running a smart and successful construction business. Construction is a risky industry, and insurance can protect your business from financial hardships after the unexpected. However, that doesn’t mean you need to overpay for this vital coverage. In fact, there are many ways to save on your contractor policies, one of them being raiding the deductible.
Before you call your insurer to increase the deductibles on all of your insurance policies, it’s wise to ensure you are making the right decision for your individual business. Raising the deductible means that you take on more financial responsibility in the event of a claim. As a result, your monthly premiums lower. But, is this right for you?
Saving money on your insurance premiums sounds like a great idea as long as you are prepared for the risks. The reason that you carry contractor insurance coverage is to protect your company from an accident that could be financially draining. Carrying optimum insurance coverage protects your bottom line so that you don’t have to worry about the high costs of an unintended accident. What happens if you have chosen a deductible that is entirely unaffordable? If you don’t have the finances to afford this high out-of-pocket cost, then your insurance policy isn’t providing the financial protection your business needs. That leaves you exposed to risks that could close your business for good.
Keep in mind that for some, raising the deductible does make sense. The best time to increase your deductible is when you already have an emergency fund saved that will cover your highest deductible amount if something does go wrong and you need to file a claim.
Interested in finding the right deductible for your contractors insurance? If so, then don’t hesitate to contact the experts at Artisan Insurance Solutions. Our dedicated team is eager to assist you with all your commercial coverage needs today.