7 Tips for Getting Construction Insurance for Your Business
As the owner of a construction business, you could be liable for a lot of damages. Click here to get some tips on getting construction insurance.
There’s no doubt about it, there’s potential for damage and accidents in construction. So, if you own a construction company, you’ve got to have insurance.
Insurance will protect you and your company from paying huge amounts of money should unfortunate events occur. But what insurance do you need?
Choosing the right insurance is important. The wrong kind won’t cover all your needs. To help you make the right decision, here are seven tips for choosing and getting construction insurance for your business.
1. Know What You Need
When choosing insurance, you need to choose the coverage that applies to your needs. So before you even start to look at insurance options, take stock of what you need to have covered.
Will you have employees? Then you’ll probably need worker’s comp.
If there’s potential for injury of yourself, owners, or anyone else, you’ll need insurance that covers that. And since you’re in construction, you’ll want insurance that covers any accidental damage that may occur.
There are lots of options when it comes to insurance. Though one may sound like a great deal, check what it covers first. There’s no point to paying for insurance that doesn’t cover your needs.
Assess the level of risk involved, too. The greater the risk for a problem to occur, the more likely you are to need insurance for that problem. Consider how much coverage you may need so your coverage applies to the extent you need it to.
2. Compare Providers
Multiple insurance providers will have the coverage you need at reasonable rates. So how do you choose the right one? A little research can really go a long way.
Compare all providers you’re considering using. Once you’ve found a few who offer what you need at rates you find acceptable, start comparing the providers to each other.
Do any of them offer additional perks or coverage over the others? If so, you may want to go with that provider.
But their offerings aren’t all you should be concerned about. You need to make sure you choose a trustworthy, reliable provider.
Check the Better Business Bureau to make sure the provider is in good standing. Read customer reviews and testimonials. Even better, talk to people who have personal experience using the provider.
Choose a provider you feel comfortable trusting and who you feel will deliver when you need them.
3. Learn from Experience
As you work on projects, you may realize there are holes in the insurance policy you’ve chosen. You may have done your best to choose a great plan, but you’ll really learn the most about your coverage when you have to use it.
If, during the course of your work, you feel that your coverage is lacking, don’t disregard the feeling. Take note of what’s missing and address it.
This may mean contacting your insurance provider and changing your coverage. Or, it may mean switching providers.
While making changes to insurance may seem like a hassle, it’s worth it. Especially if you can get the coverage you feel you don’t currently have.
4. Know Your Coverage
As a business owner, you’ve got to be familiar with your insurance coverage. And, we don’t just mean the main parts of it.
You need to know every detail. That means you’ve got to read the fine print. You’ve got to remember it, too.
You’d like to think your insurance provider will be honest and correct whenever you need them, but that may not be the case. Mistakes happen, so make sure you follow up when coverage is needed.
Make sure each incident is covered the way you were told it would be in your policy. You’re paying for it, so make sure you get the coverage you agreed to.
5. Use a Broker
Wading through lots of insurance providers can be daunting and not very fun at all. To make things easier for you, use a broker or insurance specialist.
These people specialize in the type of insurance you’re looking for. They’ll know which providers and plans match what you’re looking for. This will save you a lot of time shopping and comparing.
Just like with the insurance company though, choose a broker or specialist that you trust and who has your best interests at heart.
6. Choose Extra Protection
Don’t skimp on the coverage when choosing a policy. It’s better to choose one that covers more than you need than less.
Start with the basics like general liability insurance, commercial auto insurance, and worker’s compensation. Build everything into your policy that you’ll need.
Once the basics are covered, look at your extra coverage options. If options apply to what you and your business do, it may be worth your while to add them.
7. Include Prior Acts Coverage
To give yourself the best protection, make sure you include prior acts coverage in your policy. This coverage covers claims that may come from past work.
When you set up a new insurance policy, it probably won’t cover work that you’ve done before that point. That’s why prior acts coverage is helpful. If any claims are made for work that was done before your policy started, it will be covered under prior acts coverage.
Offer Construction Bonds
Beyond insurance, make sure you’re offering bonds to your clients. They’ll want to know you’ll stick to your word and get everything done in budget and on time.
Bonds provide protection for both you and your client. You can discover more here about bonds and how they can help your construction business.
The Best Construction Insurance
Construction insurance isn’t a one-size-fits-all kind of thing. So when choosing insurance, you’ll be the best judge of what coverage is best.
Take your specific needs and circumstances into consideration, research plans, and providers, and choose the ones that are the best fit. Insurance is a must in construction, so get out there are find a plan that works for you.
Do you wonder what types of tools you’ll need to get your construction jobs done? Check out our article on choosing a trommel machine.