You don’t have to be a contractor to know that the business insurance market has been incredibly difficult over the past six- to seven years. It was once a time that every insurance company had a presence and contractors were offered low-cost policies. The trend has been towards non-renewals and limited markets over the years. This has prompted outrage from the entire contracting sector. This remarkable turnaround is due to the collapse of construction defects. This issue will not go away any time soon. If you want to manage your casualty and property insurance costs, you need to be more proactive than ever before. Here are some ways to take control over your insurance.
1. Let insurers compete to your business. At the minimum, you should create competition for your company by putting it up for bid every 2 to 3 years. It is a tedious and time-consuming process, but it is in your best interests. Insurance companies have different business needs, so policies can be modified and rates may rise. Your agent and company will naturally be more competitive. They will see that competition is part of being a good business. You don’t mind agents calling to ask for quotations, do you? Your agent will do the same thing for your prospects. This is how agents make their money. Both your costs and your coverage are at risk. Get the best program.
2. Check that your policies are accurate – It may sound simple but it isn’t always the case. I can’t count how many times I’ve seen business owners without the coverage they want. Reexamine your policy to ensure it covers all your needs. If you don’t, your proposals will not be accurate.
3. Do not wait to begin the bidding process. I cannot stress enough how important this is. It will take you two weeks to renew your current policy. If you wait that long, you’ll be overwhelmed by the whole process. You will probably not get the best quote for your policy if you reduce the timeframe. Many companies have strict time requirements and might offer the best deals. You should allow yourself at most 90 days for the bidding process. You’ll be able receive all quotes at least two weeks prior to your renewal date. This will give you enough time to make an informed decision. How long ago was it that you last received a quote so far in advance? One reason this might be the case is because you started the process way too late.
4. You need to ensure that your risk management procedures are in place. The best way for you to get great job and a great insurance policy premium is by making sure that you have great insurance policies. Put your best foot forward. You must let insurance companies that are bidding for your coverage know that you have screened drivers for moving violations and other accidents before hiring them. They should also be aware that subcontractors may require certificates of insurance naming you as an additional insurance. Also, that your business premises is clean and safe. Safety meetings should be held with all employees. If you haven’t started doing this, it is worth it. These will not only help you save money on your insurance premiums but will also reduce the risk of getting sued and the associated headaches.
5. Reexamine your coverages to determine value. Price is important. However, I challenge you to see that value is more important than price. Take a look at your own business. What do your clients get for their money? Do you take pride in being the most affordable on the street? You shouldn’t expect your insurance to be any different. You should carefully review the proposals and get assistance evaluating them. This will ensure that you are able to rest easy at night knowing that your work and life are protected. Your insurance is essential to your survival in the face of any catastrophe. You should also demand value from your policy if you are serious about your business.
These strategies may prove to be useful for you. Your insurance experience will improve if you follow them.