5 Tips For Buying Contractors Liability Insurance
Finding contractors liability insurance is something that can make or break your success in the contractor industry. No-one wants to take on the liability prevalent on the jobsite, both during and after the work is done. As such most general contractors require a certificate of insurance before allowing you to step onto the jobsite and begin work. Because of the importance of contractor liability insurance, we have provided a small list of 5 simple tips that will help you in your search for insurance. This list is certainly not comprehensive and is by no means meant to be an all inclusive list of insurance buying practices.
Tip 1: Get Multiple Quotes.
The most basic advice that we can give on finding owners and contractors protective liability insurance is to go out and get multiple quotes from multiple sources. You don't want to limit your search to just one agent or one insurance company. Talk to your industry peers and find out which companies they have used with success and which companies they have struggled with. Take the time to get a number of different quotes; it will pay off in the end. Not every company will see your circumstance in the same way, and will provide varying degrees of coverage on the price structure you are looking for.
It can be beneficial for you to use an insurance broker to find contractor's general liability insurance. These agents have access to multiple insurance companies and multiple insurance products. Getting quotes from a couple different sources is the only way to ensure you get the coverage that is right for you.
Tip 2: Check Your Coverage For Inclusions/ Exclusions
As you are narrowing down the choices for your contractor's liability insurance, be sure that you look careful at the policies list of inclusions as well as their list of exclusions. Don't make assumptions that something that should be covered is covered. Insurance companies are careful to cover their own liability by placing exclusion clauses for coverage they deem unnecessary or risky.
Tip 3: Find a Place That Provides Good Customer Service/ Quick Proof of Insurance
Aside from finding a policy that fits your coverage needs, you also need to look at the customer service of the company offering the policy. Any company that offers liability insurance for independent contractors should also provide excellent customer service.
The best way to learn about how the insurance company treats their policyholders is to speak to one of their policyholders. Until recently this used to be easier than it is now. Because of privacy rules, insurance companies are not allowed to divulge who their clientele is, making contacting these people difficult. Speak to your colleagues about their experience with the company you are considering, and also speak extensively with your insurance broker. If the broker is not strictly affiliated with the company you should receive an unbiased perspective.
Good customer service allows you to get the documents that you need to complete your work. A good company will get you a certificate of insurance within a couple of days; a great company can do this in a matter of hours.
Tip 4: Check Rating of the Insurance Company
This next tip is rarely followed by those seeking general liability insurance for contractors. Once you have determined that the company has everything you are looking for (or before you go through the trouble of researching them), determine what the company's rating is. All insurance companies are given independent ratings based on their financial strength and future outlook. There are a number of places that provide such ratings, we recommend looking at the Standard and Poors Rating.
Tip 5: Search For a Company That Provides For Your Specific Needs
Finding general contractors liability insurance can be somewhat daunting. The most important thing that you can do is to find a policy that is specific to your needs. A comprehensive policy is not always the best option for your needs. Do not waste your premium dollars on coverage that is unnecessary for what you do and will only cost you in the long-term. Each insurance company has their own specific product line and will have different solutions. The reason that we recommend multiple quotes is that you can begin to narrow down the policies that will directly meet your individual contractor liability insurance needs.
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