Saving for the Future: Contractors Insurance 2021

​Most contractors are overpaying for insurance coverage they do not need. Why? Well, to keep it simple, most brokers could not care to scrutinize new insurance options. Lack of scrutiny can lead to higher contractors’ insurance rates, which could have been prevented earlier.

4 Tips for Contractors Planning to Purchase Insurance
As a contractor, it is pertinent to have the right insurance protection as we know lawsuits and liability claims can be very costly, potentially putting you out of business. Here are tips in getting the proper insurance protection and, at the same time, how to avoid overpaying for your insurance coverage.
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1. Be Independent of Your Personal Insurance Agent
   For example, your health insurance broker, or an auto insurance broker, would most likely have no expertise regarding the construction industry's intricacies hence would most likely not have direct access to the top contractor insurance carriers.
   
   
2. Screen Your Need for Policies
   First is the "Per Occurrence" policy; this policy would protect you no matter when a person made a claim, regardless of the policy period. While with the "Claims Made" policy wherein it would only cover you up to the time your policy period is valid.
   
   
3. Ask Brokers for Insurance Company Rating
   You want to ask about Insurance Rating because your clients and other contractors you work for may require a specific carrier rating for you to work with them. If, for example, your insurance company did not do well this year, then they could go bankrupt, leaving you with neither insurance nor a refund. Hence we suggest that you go with only B rating or higher insurance companies.
   
   
4. Know Your Inclusion and Exclusion
   Anything unwritten on your declarations page is not covered. For example, if you are a chef and your client orders you to fix the light switch and for some unfortunate event after setting the button, the house burned, you would not be protected since fixing the light switch is not declared part of your job description. Hence make sure your policy includes all the other types of work you may do.

Conclusion
We all want insurance that would suit and protect us but at the same time that won't cause us to overpay for it. By taking into account the said tips, you'll be able to make the most out of the money you spend on insurance and at the same time find the right insurance for you. 

At Black and Associates Insurance, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote.