Simple Guidelines on Managing Insurance for Your Construction Business
Insurance is a critical element for any business involved in construction and contracting. In general, construction projects comprise of numerous hazardous processes, machines and activities. Therefore, if you are running this type of operation, you must make sure that your company is protected against financial losses. Good insurance solutions will provide coverage in case of a mishap in the commercial processes. If you are planning on obtaining new insurance policies for your construction business, consider using the outlined guidelines for the best results.
Minimise Your Coverage Gaps
One of the common problems that contractors face concerning insurance is coverage gaps. Therefore, you should review your scope of coverage before purchasing new policies. Make sure that there is no significant unprotected area in your business which could lead to direct financial losses from your company. Typically, your firm must have workers' compensation insurance and general liability coverage for workplace injuries.
You should also obtain professional liability insurance. Errors and omissions coverage will protect you in case of lawsuits claiming that you were negligent or in violation of fair dealings in the delivery of your services. Naturally, your machinery and commercial vehicles should be covered in case of theft or damage. Additionally, you should consider obtaining subcontractor, pollution and cyber liability policies if you are at risk of related losses.
Avoid Paying the Same Premium
It is not uncommon for contractors to pay the same insurance premiums for all the company workers. This practice often causes unnecessary loss of money for construction businesses. Therefore, you should learn how your insurance provider calculates the premiums for the employees. In general, the insurer will consider the risks to which the individuals in your worksite are exposed.
Employees in high-risk roles are more likely to be involved in an incident requiring compensation. Therefore, they will demand high policy premiums. Workers in mundane positions in the company with low-risk factors should not be covered at the same rate. Negotiate the terms of employee coverage with your insurance provider for optimal protection at lower prices.
Monitor the Insurance Claims
You should monitor the claims that your company makes to your insurance providers, regardless of the amount demanded. Insurers are keen on the trends that construction businesses have in relation to claims. If your claims are numerous and strenuous to the insurance company, your premiums will go up during your next purchase. Therefore, know the sources of claims and control the root of the problems.
Consult an insurance agent at companies like Proinsure for comprehensive guidance on contractor insurance solutions.