Why do I need insurance?
Construction companies, as well as small contractors and private do-it-yourselfers, use insurance policies to cover their business.
So what is it exactly? Handyman insurance is an insurance policy that covers accidents. These accidents, for the most part, will occur on the construction site. For example, if someone trips over your tools, if one of your customers thinks you have wrongfully damaged their house, or if you have an accident while driving to get supplies for the construction site. All of these realistic incidents can be covered by liability insurance, workers’ compensation, umbrella insurance, and even commercial auto insurance.
General liability and workers’ compensation coverage are required by law in the United States. This means that as a construction company owner, you should at least have some. In general, they will protect you from damage you cause on site as well as any medical payments if a worker, such as a roofing contractor, is injured while working on the job site.
What should I look for in an insurance company?
1. Coverage ceilings
When looking for an insurance policy, you need to make sure that you will get the coverage you need. Business owners in the construction industry face higher insurance costs due to the higher risk while on the job. Looking at the free quotes you get, you might notice a cheaper option. Carefully review the details of the insurance policy. Some policies and companies will cap your coverage below what you need. This can leave you with a big bill at the end of an accident. Check with an insurance agency that can offer the amount of insurance coverage that is best for your business. Keep in mind that the higher the coverage, the less you have to pay. However, as a contracting company, you will need to balance the cost of insurance with the insurance coverage to get the best deal.
Similar to a coverage cap, a deductible can really affect what you pay when something happens onsite or in your business. These deductibles can vary depending on the insurance company you went with and even the insurance coverage you chose. Simply put, the higher the deductible you choose, the more you have to pay out of pocket before your insurance kicks in. For example, if you get a worker’s compensation insurance quote with a deductible of $1,000, that means that when someone sustains a bodily injury, you’ll have to pay up to $1,000 before your insurance does. covers the rest up to the previously mentioned ceiling. In another example, if you cause property damage, you will have to pay up to the amount stated on your deductible, while this could be lower depending on the accident, this is a risk you need to think about.
3. Ranges and exclusions
What might be one of the most important questions to ask is what will be covered by your insurance. Is there everything you need? You will need to consider where your coverage ends and begins. Will you be protected by your contractor’s insurance on the job site, when leaving or even after the work is finished? Consider the types of contractors insurance you need for your small business. Then think about what you need it to cover.
4. Free insurance certificate
If you’ve ever bid on a job, you’ve probably been asked for a certificate of insurance. Along with the other reasons we’ve talked about, this is why you’ll need to get the right general contractor insurance coverage for your small business. A great way to stand out from the competition even when an insurance certificate is not requested is to show it in your offer or during the conversation. This will reassure them because they can know that even if something goes wrong on the job site, they will be protected because you are protected. When talking to an insurance agent, be sure to ask if you can get proof of insurance for free. Having an insurance company online can be a quick way to know that you most likely have this option at your fingertips.
5. Tailor-made policies
Your small business is unique, just like everyone else’s. You may have a higher risk of a data breach and a lower risk of medical costs than another contracting company. On the other hand, you may need additional civil liability insurance but not professional civil liability. That’s why you need to be sure that you get a tailored policy. There are insurance companies that offer one-size-fits-all policies. These work the same way as one-size-fits-all garments. It may work for some, but not for most.
Rather than waste your time with these companies, talk to an insurance agent. This agent should be able to offer you the perfect combination of policies you need as a business owner. At ContractorsLiability.com, we offer custom business insurance policies, quotes, and coverage options just for you.
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