3 Construction Business Insurance Tips For A Lower Premium

Construction business insurance is a risk management tool used to protect the interests of contractors and other individuals who work in the construction trade. This level of coverage provides for all levels of contractors, helps provide for any liabilities, and other risks associated with the building trades.

When considering construction business insurance, the considerations for the type of coverage needed is not much different from any other type of business. Coverage provided under “business insurance” helps meet a variety of needs for a business owner and should be considered in connection with the owner’s budget and the amount of risk they may be willing to take on before the insurance company pays.

Set a Budget

Setting a budget will help you determine the appropriate amount of premium necessary to meet your coverage requirements. The budget will give you an idea as to how much you can spent and how much of the project’ risk you may need to take on internally.

Advantage

•Budgets give you a visual representation of what you can and cannot spend relative to your project.

•Setting a budget keeps you on task and keeps your costs in line with expectations for a project.

Disadvantage

•The budget may force you to make choices as to the type of coverage you can have.

•You may need to seek additional resources in order to afford the type of coverage necessary to qualify for a project.

Choose an Experienced Agent

Work with an experience agent to find the best amount of construction business insurance for your needs.  The agent can match your requirements with the appropriate insurance company and submit the application and proposal in order to provide you with the coverage you need, when you need it.

Advantage

•You can rely on the agent’s professional judgment to find the best coverage available.

•The agent can represent multiple companies and provide you with competitive quote information.

Disadvantage

•If the agent is a captive career agent, you may be limited to just a single quote from the agent’s company.

•The agent may have more incentive to sell company products that are more expensive and subject you to higher fees and commissions.

Raise Deductibles

You can raise or change the deductible amount for the policy as a way to reduce your premium of out-of-pocket expense.  Making changes to the deductible mean that you are willing to accept a portion of the risk as your liability in the event an accident or liability situation.

Advantage

•Changing the deductible will help you lower your costs and provide some level off benefit.

Disadvantage

•It may require you to have a reserve fund or some contingency pool available in the event that a liability occurs that exceeds the benefit you receive from the insurance company.

Ask questions and understand completely the terms of any insurance contract you enter.  You want to know that the policy you are purchasing meets your needs and requirements and that the policy provisions and terms are in keeping with your understanding of the coverage.