As we get close to the new year, many business owners, including contractors, are dealing with a checklist of items to start the new year right. They have to complete their financials and prepare for tax season. Many business owners also use this time to look at their current insurance policies and renew the necessary certificates of contractor’s insurance.
Instead of searching for “contractors’ insurance near me,” you need to work with an insurance agency experienced in contractor’s insurance and their specific requirements. As a contractor, here are 5 reasons why you need to a jumpstart on your certificate of insurance for 2020.
Review Your Coverage
The first reason you should get a jumpstart on looking at your coverage is to review it. After all, as your business grows and changes, then your insurance needs will naturally change as well. For instance, you might be taking on bigger projects, so your liability insurance needs may be increasing. Taking the time to review your insurance needs at the end of the year can be a way to have the right coverage as the year starts.
Changes in the State Requirements
Another reason to review your insurance is because the state’s requirements are constantly changing. Therefore, you might find that your insurance needs to be upgraded, simply because of those changes. In California, there are specific requirements regarding contractors’ insurance and those need to be met to do business. However, doing a regular insurance check-up using a contractor’s insurance agency can help you to stay within the requirements of the state where you are licensed.
Address Changing Costs
As the year ends, you are knee-deep in your financials, including looking at the costs for a variety of items. Since your contractors’ insurance is part of your overhead expenses, take the opportunity to review your insurance to make sure that you are getting the best rate for your current insurance needs. If you are working with an insurance agent who is connected with several companies, they can get you several different quotes.
When reviewing the quotes, make sure that they are all giving you similar coverage. A better rate might mean that you are losing a key piece of coverage or gaining a larger deductible.
Find Out About Potential Discounts
One of the biggest reasons to review your insurance is to determine if there are any discounts your business may qualify for. After all, as your contractor business has grown throughout the year, you may now qualify for discounts that were not available to you last year.
Bigger Projects in the Coming Year
Another reason to get a jumpstart on your contractors’ insurance review is the workload you are taking on for the new year. Your business has expanded, and you may have booked projects that are significantly larger. Reviewing your insurance can give you the right liability insurance coverage to protect your business and the project owner.
Clearly, there are benefits of taking the time to review your insurance. You might find that it saves you money or gets you the right coverage to meet California’s requirements. Our experienced team works with contractors, so we have firsthand knowledge of the types of insurance requirements that you need. Contact us today to start your insurance review.
Top Contractors Insurance Services is a full-service contractor insurance agency handling workers compensation, general liability, construction bonds, and auto quotes.