The Coronavirus pandemic has brought the importance of small contractor business insurance to the forefront for many companies. In these difficult times in the construction industry, having business insurance in place has been key in helping companies survive.
By the same token, the onset of the pandemic has led to many businesses re-evaluating their existing insurance coverage. Others are applying for new coverage to better address their changing needs and requirements.
5 Ways to beat the challenges. Get the best rates!
Navigating the insurance market can be challenging at the best of times. With the added concern of how to steer your business through these troubled times, it can be more complicated than ever.
So, if you’re planning to apply for new insurance for your small contractor business, you should keep these tips in mind:
1. Know what coverage your policy offers
Reviewing your policies regularly will help ensure that you know what they cover and what they exclude. You can then apply for the necessary additional coverage, if needs be. In the event of a claim your business is then protected as fully as possible.
2. Reduce costs by bundling coverages
Insurance premiums increase your monthly and yearly fixed costs. This is a huge concern in the current economic environment, as businesses across the board have experienced a downturn, and the American economy has contracted by 32.9%.
To keep your costs down, consider bundling as many insurance coverages as possible into a single policy with a single insurance provider – this can help reduce your premium.
3. Buy industry-specific coverage
Many insurance providers offer Contractor Insurance. This bundles together General Liability insurance with other essential policies such as Workers Compensation.
Furthermore, there are many coverages available tailored to your business requirements. This will depend on what area of the construction industry your business specializes in. These industry-specific coverages help address your business’s unique needs and risks. Then this will help ensure that your business is protected as fully as possible.
4. Examine your deductibles
A deductible is an amount that you pay out of pocket towards a covered claim before your insurance kicks in. Increasing your deductibles can help reduce your premiums and save you money.
However, you should examine the decision to do so carefully. Small contractor business insurance aims to protect you financially in the case of litigation or other business problems. Keep in mind that if you are unable to cover a higher deductible, you will be left exposed to more significant financial risks.
5. Identify risks and challenges
Firstly, identify the risks and challenges faced by your business. This will enable you to select the right insurance and plan for all eventualities. But there are other benefits for your business management. Identifying risks will also enable you to create a risk management plan. Implementing such a plan will result in fewer losses and injuries at both your business premises and project site which in turn, will lead to fewer claims and lower premiums.
How do I apply for new small contractor business insurance?
Yes, you can get cheaper rates for your small contractor business insurance! Get a new policy. Renew your existing coverage. We can help. Call the experts at Farmer Brown Insurance on (888) 973-0016.