As a contractor, your business is constantly changing. The workflow reflects the shifts in the market that require new construction or major remodels. Thus, your contractors insurance needs will also change based on what is currently in your work pipeline. Therefore, you need to make sure that you are regularly reviewing your contractor’s insurance policy. Here are some of the benefits of taking the time for an annual review of your contractor’s insurance policy.
Why Review Your Policy?
Fundamentally, your contractor’s insurance policy provides liability insurance and professional insurance to keep your business safe in the face of errors or potential lawsuits. Therefore, as your business grows, you need to have the right level of liability coverage to protect your business, employees, and clients.
In the same way, if demand for your business has gone down, then you might want to adjust your insurance to reflect where it is right now, instead of carrying a hefty payment every year and being over insured.
What to Look For On Your Policy
When you sit down to review your policy, pull your list of anticipated projects. If they were to all have problems or delays, do you have enough contractors insurance to cover them? Working with your insurance agent, you can determine whether you need additional coverage or other adjustments to your policy based on the anticipated work for the upcoming year.
Additionally, your insurance agent may opt to audit your contractors business, to determine if your current premium reflects accurately the current data on your business. After the audit, your insurance carrier could show that your premium was set too low or it was set too high. That could mean you end up owing at the end of the year or you might have a credit that can be applied to the next year’s premium.
If you are unclear about how your premium is calculated for your contractors insurance, then talk with your insurance agent. Perhaps there are steps you can take to improve your rating and thus reduce your premium.
The goal of the insurance agent is to calculate how much potential risk your contractors business is and then charge premiums based on that risk. If you are looking at other insurance agencies to compare pricing, then they may ask for details about your business, including a description of your operations, sales data, payroll data, and information about the vehicles and their mileage.
By reviewing your contractors insurance on an annual basis, you put yourself into the position of being able to correct any wrong information about your business, while at the same time, make adjustment to have the right coverage for your current needs. Plus, if legal requirements have changed, your insurance can be adjusted to make sure that you are still in compliance.
Our team can review your contractor’s insurance policy and make sure that you have the right coverage for your business. Contact us today for a review of your current policy or to set up your annual review today.
Top Contractors Insurance Services is a full-service contractor insurance agency handling workers compensation, general liability, construction bonds, and auto quotes.