The typical contractor's life is not an easy one. Your days begin early and end late. You're constantly on the go, you have a bunch of your money invested in equipment and it's almost always in use. It is an ongoing process of marketing, bidding, actually doing the work and supervising it gets done correctly, and finally collecting payments and double checking that everything is running smoothly.
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 certainly don't disagree that price is very important. Still there is another factor that most contractors never consider. Finding an expert to deal with all of your insurance needs is critical. You want someone who absolutely does specialize in contractors insurance. You want to stay out of as much trouble as possible.
If you want to stay in business you must have the right insurance agent. The agent in question must be an expert in contractors insurance and they should be able to easily prove this to you if they are by showing you all the contractors they already insure. Many agents will say they specialize in an area simply to get you to sign up for coverage. If the agent does not specialize in contractors insurance it will be difficult if not impossible for the agents to get you enough coverage regardless of the price that they offer. You must always balance the kind of coverage versus the costs that you will be paying.
Since contractors have many unique needs only a contractors insurance specialist can determine the exact kind of protection that you absolutely must have. There are many variables in your business that could easily be covered and protected against if you have the right agent looking out for your benefit. An expert can spot the places that you must have maximum coverage and exactly where they can save you money. The typical agent cannot do this.
I want you to consider that transfer of risk happen everyday and if they are not insured correctly your business can be over with one bad claim. Please do not risk what you can't afford to lose. A typical agent will have an incorrect or overly simplistic view on your business and could miss many important situations that could arise. Don't overlook the long-term financial impact that this can have on everyone else around you. Ensuring wisely is the only way to truly save money aggravation and risk in the long run.
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 certainly don't disagree that price is very important. Still there is another factor that most contractors never consider. Finding an expert to deal with all of your insurance needs is critical. You want someone who absolutely does specialize in contractors insurance. You want to stay out of as much trouble as possible.
If you want to stay in business you must have the right insurance agent. The agent in question must be an expert in contractors insurance and they should be able to easily prove this to you if they are by showing you all the contractors they already insure. Many agents will say they specialize in an area simply to get you to sign up for coverage. If the agent does not specialize in contractors insurance it will be difficult if not impossible for the agents to get you enough coverage regardless of the price that they offer. You must always balance the kind of coverage versus the costs that you will be paying.
Since contractors have many unique needs only a contractors insurance specialist can determine the exact kind of protection that you absolutely must have. There are many variables in your business that could easily be covered and protected against if you have the right agent looking out for your benefit. An expert can spot the places that you must have maximum coverage and exactly where they can save you money. The typical agent cannot do this.
I want you to consider that transfer of risk happen everyday and if they are not insured correctly your business can be over with one bad claim. Please do not risk what you can't afford to lose. A typical agent will have an incorrect or overly simplistic view on your business and could miss many important situations that could arise. Don't overlook the long-term financial impact that this can have on everyone else around you. Ensuring wisely is the only way to truly save money aggravation and risk in the long run.
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