The life of a typical contractor is not an easy one. Your day can begin very early and end late at night. Besides being on the go all the time you have the constant worry of something going wrong. With most of your money invested in equipment and people on the road all day long, this is a real possibility. You also have the ongoing process of bidding on jobs, following up on the marketing, actually doing the work and making sure that your getting the job done correctly. Then of course you need to collect payments and pay everyone else . . .
For most local contractors all of this may be viewed from the outside as a small business. Many of you don't have an office per se, wives and/or girlfriends are your administrative assistants, most of your bookkeeping happens on the road, and the last thing that you want to think about is how to pick the right insurance agent and how to get a great deal on contractors insurance.
But there is one truth that you should know. You need to take the time to choose the right agent or one thing will definitely happen; you will be spending probably more money then you should and you definitely will not have the right kind of coverage. Proper coverage requires many grouped forms of insurance. For example you will need commercial auto insurance, group health insurance, insurance for your tools and equipment, workers compensation, umbrella protection, general liability insurance and the list can go on for quite some time here. Long gone are the days where you could simply start a contractors business with just general liability insurance. The ever increasing federal and state regulations will guarantee if you do not have the correct insurance you could end up in big trouble as well as totally unprotected in the event of even a minor claim.
The list above of all the insurance that is necessary to operate your business safely and successfully, demonstrates that there certainly are a lot of dollars flowing away from your business. Insurance protects you only if something bad happens. Your goal is to generate as much profit as possible therefore many contractors take the position that since they have never had a claim they should get the cheapest rates. You may also think that claims only happen to the other guy. So the only thing that really matters is the bottom line or the cost to your company.
I don't disagree. Price is very important. But there's another factor that most contractors never consider. Expertise in insurance does matter! Simply put, an agent that eats sleeps and breathes contractors insurance everyday is going to know who the players are in the marketplace, have relationships with insurance company underwriters to get the most favorable pricing and terms, and far more importantly, keep you out of real trouble.
This means that you seriously need to check out the right insurance agent, one that has expertise specifically in contractors insurance and can prove this to you. Many agents say that they can handle any kind of insurance for you but the reality is if they do not specialize in this specific kind of insurance the likelihood of them being able to get the best deals for the best price and the best coverage are simply not true.
Being a contractor means you have many unique situations that need protection. The typical insurance agent can only protect against the basics. Only an expert can determine the exact kind of protection that you will need and the variables that can easily be covered and protected against. It is always a delicate balance between proper coverage and the amount of money that you should pay. That's why you need a specialist.
The scary thing is that complex transfers of risk happen everyday and if they are not insured correctly, your business could literally be ruined with one bad claim. Don't risk what you can't afford to lose! Incorrect, or an overly simplistic view on your business insurance could have long term financial impact on you, your employees, and families. Don't risk it. Insure wisely and choose a specialist in contractors insurance.
For most local contractors all of this may be viewed from the outside as a small business. Many of you don't have an office per se, wives and/or girlfriends are your administrative assistants, most of your bookkeeping happens on the road, and the last thing that you want to think about is how to pick the right insurance agent and how to get a great deal on contractors insurance.
But there is one truth that you should know. You need to take the time to choose the right agent or one thing will definitely happen; you will be spending probably more money then you should and you definitely will not have the right kind of coverage. Proper coverage requires many grouped forms of insurance. For example you will need commercial auto insurance, group health insurance, insurance for your tools and equipment, workers compensation, umbrella protection, general liability insurance and the list can go on for quite some time here. Long gone are the days where you could simply start a contractors business with just general liability insurance. The ever increasing federal and state regulations will guarantee if you do not have the correct insurance you could end up in big trouble as well as totally unprotected in the event of even a minor claim.
The list above of all the insurance that is necessary to operate your business safely and successfully, demonstrates that there certainly are a lot of dollars flowing away from your business. Insurance protects you only if something bad happens. Your goal is to generate as much profit as possible therefore many contractors take the position that since they have never had a claim they should get the cheapest rates. You may also think that claims only happen to the other guy. So the only thing that really matters is the bottom line or the cost to your company.
I don't disagree. Price is very important. But there's another factor that most contractors never consider. Expertise in insurance does matter! Simply put, an agent that eats sleeps and breathes contractors insurance everyday is going to know who the players are in the marketplace, have relationships with insurance company underwriters to get the most favorable pricing and terms, and far more importantly, keep you out of real trouble.
This means that you seriously need to check out the right insurance agent, one that has expertise specifically in contractors insurance and can prove this to you. Many agents say that they can handle any kind of insurance for you but the reality is if they do not specialize in this specific kind of insurance the likelihood of them being able to get the best deals for the best price and the best coverage are simply not true.
Being a contractor means you have many unique situations that need protection. The typical insurance agent can only protect against the basics. Only an expert can determine the exact kind of protection that you will need and the variables that can easily be covered and protected against. It is always a delicate balance between proper coverage and the amount of money that you should pay. That's why you need a specialist.
The scary thing is that complex transfers of risk happen everyday and if they are not insured correctly, your business could literally be ruined with one bad claim. Don't risk what you can't afford to lose! Incorrect, or an overly simplistic view on your business insurance could have long term financial impact on you, your employees, and families. Don't risk it. Insure wisely and choose a specialist in contractors insurance.
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