The Best Liability Insurance Advice Contractors Need To Hear Today!

3 Tips on why and how to keep your construction business protected.

Here’s the reality for Contractors:  2 out of every 5 small businesses will have faced a liability claim by 2030. 

I know what you’re thinking:

That despite the danger and risk, your crew has always pulled through and worked safely. But, how sure are you that it will always work out like this?

Consider what an accident could mean for you and your business, not to mention your family. Surely, some professional advice on Liability Insurance won’t be a waste of your time?



Don’t waste your time. Don’t waste your money

Want to know the 3 pieces of advice I wish I had known when I started in construction?

Well, here they are:


#1 Confirm what your policy covers. And what it doesn’t cover

Simply put, when something goes wrong, someone needs to pay. General Liability coverage is intended to pay for damages that your business causes. 

And let’s face facts: Seemingly small incidents can incur costs well beyond what would reasonably be expected.

But, how bad can it get? 

Silly little incidents can have far-reaching costs. There is the famous incident of a construction accident that resulted in the groom having to postpone his wedding.

And the outcome? The company had to carry all the resulting losses. Venue deposit and catering, including family and friends who had already booked airline tickets and accommodation. When you have the in-laws flying in from Australia, that can accumulate into more dollars than you would comfortably part with.

Contractors do not have time to waste. A quick review of the terms of your policy should be enough. Right? 

Don’t be that guy! 

Working in construction is a different world to selling insurance policies. Many contractors don’t understand the policy, they just assume it gives the coverage they need. Mistake! 

Get a professional and reputable company to review your policy with you. So look for a company with  specific experience in insurance.   A consultant at Farmer Brown knows what you need … and where to get the best Liability Insurance at the best rate! That’s a REAL win.

Most losses in the construction industry result from third party injury claims and property damage. General Liability Insurance will cover all those costs. What’s more: reputational harm and advertising injury is also covered.

Our recommendation: A well-disciplined team is like a super power. The right people in the right positions is your first line of defense. Why? Trained, skilled workers are likely to make fewer mistakes; mistakes that cause damage to other people’s property. 

But, you already know this. 

So, here’s the reality: Hiring skilled employees is getting harder. Old hands are leaving, and it isn’t a popular choice for youngsters. So, what can you do? 

Get a safety net! The best practice is to have comprehensive Contractors Liability Insurance. 

Trust us, you don’t want to buy 12 return airline tickets from Australia to the USA. Or pay for your client’s car when roofing tiles fall on its hood.  You get the picture, and it’s not pretty.


#2  Face it: How big is your risk?

When reviewing your projects, you will soon realize that every trade has a unique risk profile. One contractor  works at heights, other guys are on the ground, along with a multitude of earth-moving equipment. 

But, one truth remains:

In construction, the risk is always high.

So, what does this mean when it comes to your insurance? 2 things:

  • Can your business afford to be sued?
  • Is Liability Insurance really too expensive? 

Working it out is easier than you think. Farmer Brown has built a solid reputation in the construction industry. We know what a claim can cost you. We also know how much coverage you are likely to need.

But, why should you trust us to give you the right insurance advice?

With licensed professionals in all 50 states, you can rest assured that a General Liability Insurance policy from us has your business covered. Not only for the range of possible incidents but at dollar values that will keep your company’s doors open after disaster strikes.


#3 Are umbrellas overrated? No! Don’t leave home without coverage.

I have been exactly where you are. Looking at the cost of insurance and thinking, “Maybe later.” 

This is short-term thinking. It may bolster your short term cash-flow and you feel like you’re saving some money. However, the reality is that you are trading your long-term viability for nominal short term gains.

Here’s just one of the risks you may not have thought of: You won’t get the job.

Why? You may be blacklisted during tender processes because companies will have doubts whether you could carry the costs of damages. Once you have a reputation as an operator that disregards risk, you may end up with a permanent reputation as someone who disregards the dangers associated with construction. This could mark you even after you have put insurance in place.

We all know that liability claims can sink a business.

Not to mention putting your personal assets at risk. The best practice is to learn the hard lessons from others. Construction liability claims can easily reach millions. Can you afford to pay up in the event of a claim?

Not long ago, the US Census Bureau estimated over $1.3 trillion is spent each year on private and public construction projects. Big money and big risks tend to go hand in hand. You can be sure that there were lawsuits to match. 

The answer: Liability Insurance coverage.

Want to get a clearer picture of your risk profile and insurance premium costs? It’s easy. Just call Farmer Brown. We offer comprehensive quotes, absolutely free and with no obligation. 

Worst case scenario? You get a clearer picture of your business’s exposure to risk and the cost to cover it.



But that’s not all …

Liability Insurance is a big step in the right direction. But, you might need additional coverage. Remember that Liability Insurance is for third-party coverage. This is a contractor’s priority: You need to safeguard and protect the company you are working so hard to build. 

Unfortunately  there’s no one policy with coverage for all your risks. Here are 3 others that you could add to your Insurance package. How urgently do you need them? Ask your consultant at Farmer Brown to assist. 

  • Builders Risk Insurance covers tools and equipment, damage to the existing structure, fire, theft, vandalism, and other risks not covered by your liability policy.
  • Workers Compensation will cover lost wages and medical bills for workers injured on site.
  • Commercial Auto Insurance covers liability and damages caused by your company vehicles.



Knowledge is power. It will save your business

The easiest way to secure great coverage is to speak to people who know about it. At Farmer Brown, we focus exclusively on contractors. We’ll tell you exactly what you need. We offer insightful and specialist advice to all parties operating in the construction industry. And we can get you the best rate!

Bottom line: We can tell you all you need to know about Liability Insurance for your contractor business. Call us today!



Liability Insurance Advice for Contractors at Farmer Brown

 The easiest way to secure great coverage is to speak to people who know about it. At Farmer Brown, we focus exclusively on contractors. We’ll tell you exactly what you need.

Our experts provide advice on contractors General Liability Insurance, as well as any policy your business might need. Call Farmer Brown on 888 973 0016.

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.