Top 5 ways contractors can save on their liability insurance
The construction industry is always changing, as are the insurance company that cater to this industry. With the recent rate increases that have canvassed the property and casualty insurance, contractors have been looking for more ways to save money today than ever before. The suggestions below are just a few of the ways that your will have more flexibility with the pricing of your insurance policy. Please note: this list of suggestions may not be fit for everyone's situation. It is always best to suggest a knowledgable insurance professional who specializes in the construction industry.
1. Don't over estimate your annual Gross receipts and/or Payroll figures. Many times contractors will give an estimate based upon how much work they would like to have over the next year, not what is realistic. For example, If you estimate $500,000 in gross receipts for your general liability quote and you only end up going $300,000 in gross sales. The difference in premium will not be credited back to you. It is always best to use accurate figures in order to save money.
2. SHOP the market. Don't just go with any renewal quote that your broker sends you. There are always new carriers out their looking to compete for your business. Make sure your have taken a look at 3 different proposals before making a decision. There are different options regarding insurance coverage and endorsements that can heavily affect pricing options. Please seek advise from an insurance professional who is familiar with contractor insurance as most programs are specialized and differ greatly.
3. Increase the deductible, if you're OK with it. An average deductible is $1,000. Many carriers will offer deductibles between $2,500 and $10,000 with an nice decrease in premium.
4. Package your insurance coverage. Often times insurance carriers will provide significant discounts if your are able to purchase multiple lines of insurance with the same provider. A common package is to include your bond, commercial auto and general liability. This is a common way you are able to save upwardss of 20%
5. Make sure additional insured certificates are included in the cost of your liability policy. Often times contractors need to provide insurance certificate throughout the course of the year. Depending on the which carrier you are with they can cost up to $100 per certificate. If you need several certificates throughout the course of the year be sure to have a blanket endorsement included.
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