River Valley Insurance Agency Inc Blog
Owning a construction business requires having contractor insurance. It doesn’t matter if you work alone or if you have employees, it is mandated by law that you have contractor insurance. What you have to know, however, is that you don’t need to overpay for your insurance coverage. Fortunately, all construction professionals have the ability to lower the costs of contractor insurance policies no matter what size of business you have. Here are some tips.
Combine Your Policies
Any business needs a liability policy before it can operate and your need for coverage is not limited to this. A lot of insurance companies or brokers will give you a discount if you get more than one policies and combine them. Depending on the insurance company, you can get as much as 10% discount on all the policies that you combine giving you more savings.
Choose a Higher Deductible
This is a straightforward way to save money on monthly premiums. What you have to remember is that when your insurance policy’s deductible is high, your premiums are low.
Choosing a higher deductible can give you more cash flow as your premiums become cheaper that you can use for business. However, you have to be ready to pay that deductible should there be an emergency.
Pay Less for Commercial Auto Insurance
In commercial auto insurance, your rates depend on the driving records of your employees. To save money, hire drivers that have excellent driving records. You should also check the records of all of your employees at least once a year to make sure that they maintain it. You should also steer away from buying the most expensive models for your commercial vehicle as it affects the rate of your premiums as well.
Prioritize Safety When Doing Business
It's easy to get your general liability to go down by not getting sued. A liability insurance claim can happen if a person files a lawsuit against your business because of physical injuries caused by your business. If you don’t want a lawsuit in your hands, safety should be your priority. You should also check if your employees are practicing safety as well.
Choose a Master’s Policy Insurance
A builder’s risk policy is usually project-based and are terminated after building is complete. However, a master’s risk policy offers more flexibility and is able to insure more projects simultaneously. This kind of policy has better coverage and are intended for bigger projects. This means that you can divide the costs between subcontractors and general contractors to make it more affordable for you. Before starting the project, talk to your insurance broker if you are eligible for a master’s policy.
Choose a great insurance company that offers various ways for you to save money. At River Valley Agency, our mission is to ensure that we protect are clients and offer them policies that they can afford. Learn more about our products and services by calling our agency at (616) 301-9500. You can also request for a free quote by CLICKING HERE.