Contractors insurance can be costly. Thus, if you know how to reduce the cost of insurance, then it can save you as much as hundreds of thousands of dollars. This could actually potentially save your entire business. Besides, you can use the money for fulfilling your operating expenses. Here are a few ways that you can possibly reduce contractors insurance cost.
Always Prioritize Safety
In the same way that personal insurances operate, if you are less risky, then you can acquire cheaper and better premiums. Your insurance will, therefore, stay affordable over time and in the long run. If you have a high-risk industry such as construction, then you should always offer safety programs and implement your regulations to the letter. Some insurance companies also help you conduct safety programs along with their policies. You need to go through this in order for you to qualify for a lower premium. It is no different from safe driver programs that auto insurance companies require.
Get Good Quotes and Go for Bundles
Do not say yes to the first company that you have contacted. Get a second quote from another company. Compare policies and research on the true nature of each company’s level of service. While considering cost, choose an agency that eventually meets all your needs. Never sacrifice service for cost, or you will be sorry.
If the insurance company offers you bundle policies such as a combined commercial property and contractors insurance, never hesitate to take it if it benefits you. Bundling can always help you save money while you experience the same type of coverage. However, make sure that the bundling will benefit you more than if you will not take it.
Negotiate If Possible
If you have to negotiate the cost of the builder's risk insurance, then do so. If you can get purchase builder's risk insurance, then take advantage of it. When you have to sign contracts with employees, make it clear who will take out the policy. In case you decide to get a builder's risk insurance, negotiate a portion of the cost of the contract or the whole of it. You may also consider using it as a bargaining chip.
Review the Entire Policy First
Don’t make an expensive mistake by assuming that the policy covers something when in fact it does not. Read the fine print and know in detail what the policy includes and excludes. Make sure that you understand the policy terms. For example, clarify differences between structures and buildings. If your policy covers buildings, then it may not cover damage to the shed.
Some Final Words
Perhaps, another tip is to work with subcontractors who have already insured themselves. Thus, you don’t have to list them under your policy as that can add to your expenses. There are many more ways to reduce premium cost. It is true that your insurance premiums may take a big bite off your budget. However, whether your insurance policy is required by law or not, it can truly protect you when there are emergencies.
At Black And Associates Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (509) 464-0058. Get your free quote today by CLICKING HERE.
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