Why do I need insurance?
Construction companies, as well as small contractors and private handymen, use insurance policies to cover their business.
So, what is it exactly? Handyman insurance is an insurance policy that covers accidents. These accidents, for the most part, will occur on the job site. For example, if someone trips on your tools if one of your clients believes that you wrongfully damaged their house, or even if you get in an accident while driving to get supplies for the site. All these realistic incidents can be covered by liability insurance, worker's compensation, umbrella insurance, and even commercial auto insurance.
General liability coverage and worker’s compensation are required by law in the USA. This means that you as a business owner of a construction business should at least have those. In general, they will protect you from damage that you do on-site as well as any medical payments should a worker, for example, a roofing contractor, get hurt while working at the job site.
What should I look for in an insurance company?
1. Coverage Caps
When you look for an insurance policy, you should make sure that you will be getting the coverage you need. Business owners in the construction industry face higher insurance costs due to the higher risk while working. When looking at the free quotes you obtain, you might notice a cheaper option. Take a close look at the details of the insurance policy. Some policies and companies will cap your coverage below what you need. This can leave you with a large bill at the end of an accident. Check with an insurance agency that can offer the insurance coverage amount that makes the most sense for your business. Keep in mind the higher the coverage, the less you have to pay. However, as a contracting business, you will need to balance the cost of insurance to insurance coverage to get the best deal.
Similar to a coverage cap, a deductible can really affect what you pay when something happens on-site or in your company. These deductibles can vary based on the insurance company you went with and even the insurance coverage you chose. In the simplest terms, the higher the deductible you choose, the more you have to pay from your own pocket before your insurance kicks in. For example, if you obtain an insurance quote for worker's compensation that has a $1,000 deductible, that means that when someone receives bodily injury, you will be required to pay up to $1,000 before your insurance covers the rest up to the previously talked about the cap. In another example, if you cause property damage, you will have to pay up to the amount listed on your deductible, while this could below depending on the accident, it’s a risk you need to think about.
3. Ranges & Exclusions
What might be one of the more important questions to ask is what will be covered by your insurance. Is everything you need there? You will need to take a look at where your coverage ends and begins. Will you be protected by your contractor's insurance while on the job site, when leaving, or even after the job is completed? Think about what types of contractor insurance you need for your small business. Then, think about what you need it to cover.
4. Free Certificate of Insurance
If you have ever bid on a job, you have probably been asked for a Certificate of Insurance. In addition to the other reasons we spoke of, this is why you will need to get the proper general contractor's insurance coverage for your small business. A great way to stand apart from the competition even when a Certificate of Insurance isn’t asked for is to show it in your bid or during the conversation. This will reassure them because they can know that even if something does go wrong on the job site, they will be protected because you are protected. When you are speaking to an insurance agent, be sure to ask if you can obtain proof of insurance for free. Having an online insurance company can be a quick way to know that you more than likely have that option at the tip of your fingers.
5. Tailored Policies
Your small business is unique and so is everyone else’s. You may have a higher risk of data breach and a lower risk of medical cost than another contracting company. On the other hand, you may need excess liability insurance but not a professional liability. This is why you need to be sure that you are getting a tailored policy. There are insurance companies that offer one-size-fits-all policies. These work in the same way as one-size-fits-all clothing does. It might work for some, but not for most.
Rather than wasting your time on these companies, talk to an insurance agent. This agent should be able to give you the perfect combination of policies that you as a business owner need. Here at ContractorsLiability.com, we offer personalized business insurance policies, quotes, and coverage options just for you.