If you’re a contractor, construction insurance is an absolute must. However, not all insurance is equal and for most contractors, insurance policies are something you only think about when renewal comes around each year. At that time, many contractors will simply stick with what they have. While a policy may have worked for one year, the needs for insurance may change as a business grows and shifts. Without a prudent insurance broker, you may be missing out on important insurance that could save a ton of money by limiting your exposure.
Of course, contractors are not in the business of insurance. This leads to a lot of confusion that could be saved with a few simple tips that keep proper insurance as a lessened burden.
Get the Right Broker
Having the right insurance broker on your side can lead to much better deals. By working with the right person, you can stay up to date on the latest coverages and get the best deal for the size of your business without exhaustive research. When you don’t have the right broker, you risk losing out on better coverage, getting policies for a worse price, or not getting a new coverage that could have protected you before an incident occurred. The right broker can also help you fill out paperwork properly and help to lower your costs at each stage of your business.
Pay Per Worker
Workers’ Compensation insurance is calculated by classification of worker. Unless each of your employees makes the same amount of money and works the same hours, you could be losing a lot of money by bundling them into the same classification. For instance, a worker that makes $30 an hour should cost less to insure than workers that make $25 an hour. In fact, if a worker makes $25, it would cost less to pay them more each hour than the extra cost of insurance. Most employers would rather give their workers more money than spending it on a bad insurance policy.
Having the right safety training can help lower your insurance premiums. Contractors are legally required to have safety meetings every 10 working days. By showing you have properly given instruction for each potential hazard, such as how to use a harness, you’ll be better positioned to prove the employee had the right training prior to the incident. This can help against being sued by discontented employees.
At ABCO, we understand the insurance a contractor needs and can give many options in the right coverage. Contact us today to find out how we can help your business succeed.