4 Tips for Getting Your Contracting Business Insured

As a contractor, your company and the people working under you are subject to risks. Even with mitigating measures in place, your assets and workforce are exposed to factors beyond your control and may lead to significant property damage and injury. If not fully protected, your business stands to lose thousands of dollars after an unexpected incident

Getting the right insurance coverage makes a difference in dealing with situations beyond your control. Instead of looking at it as part of your compliance checklist, selecting the type of coverage and provider can maximize your business’s protections, ensuring that your services are covered. All it takes is knowing a few key tips to make the most of your coverage, especially as you start receiving high-value contracts and expanding to other service areas.

1. Know Your Industry and Level of Risk

The type of coverage you need, whether required or optional, will depend largely on the industry you’re active in and the amount of risk you’re exposed to. As a general contractor for high-rise building projects, you are required to implement a contractor-controlled insurance program that rolls general liability and workers’ compensation coverage into one.

If your company specializes in building bridges, you will need marine general liability and protection coverage. This is essential if your company is held liable for damages to vessels and bodily injuries that occurred near a body of water you’re building over. You might also need marine pollution liability coverage if your business is ever flagged for environmental violations. Whichever the case, consider the specific needs and risks to your business and determine what additional features to include.

2. Consider the Terms of Your Contract

While you’re getting coverage for your company, it’s essential to check every contract you enter into. Before placing your bid for any construction, renovation, or development project, it’s important to review the terms, specifications, as well as insurance requirements that might not be available locally.

Additionally, this process may reveal provisions in the master service agreement that require you to indemnify a general contractor and the owner of the project if on-site injuries are reported. If you’re a subcontractor in such a case, you may still be required to answer an injured employee’s third-party claim even if there’s no proof of negligence on your part. You can prevent this by getting action over insurance coverage before submitting a bid.

3. Know Who to Trust in the Insurance Industry

When it comes to getting your contracting business insured, it’s never a good idea to settle for what’s readily available, cheap, or good enough. Especially if you’re handling complex, high-value projects, you will want to deal with an insurance carrier that has covered large-scale construction and, more importantly, demonstrates a financial capacity to pay for major on-site incidents.

Avoid carriers that have been flagged for unfair practices and industry violations. To be on the safe side, you can check with an insurance broker who can work to align your business’s unique needs and risk profile with the right policies from the right carriers.

4. Leave Space for Growing Your Business

Even if you’re starting with small-scale projects, there’s still potential for your business to grow in terms of size and scope and expand to areas outside your immediate market. Over time, you will be hiring additional staff, building new offices, and acquiring heavy-duty equipment that should also be covered.

From this, running your business becomes more complicated, along with your risk exposure. When selecting insurance, be sure to get a carrier who can customize your policy at scale and provide you with the best possible terms to support your company’s expansion.

Endnote

As a business active in the construction industry, it’s important to be forward-thinking. Equipping yourself with these tips is a good start to running a successful operation and securing your company against anything that could otherwise slow it down.