We always hear about the importance of having life or health insurance. Even our cars and properties should be covered. Insurance serves as a security blanket. It gives us peace of mind, knowing that when something unfortunate happens, we can turn to insurance to help with the financial losses. And when there’s an untoward incident, shelling out money is not something that we want to think about.
If we think about having coverage for our life, health, home, and vehicle, it is only imperative to purchase insurance for your business as well. We all know how much money is allocated to the different aspects of a business, regardless of industry. Aside from funds, entrepreneurs spend a lot of time and energy into making sure that the business is running smoothly at all times. If you’re going to spend a lot of your resources to make your business a success, you surely want to protect it, right? This is where the insurance comes in.
It does not matter what type of business you have or in which industry you’re in – purchasing insurance is, and should be, a priority. Construction companies, for instance, also need to have adequate coverage not only to comply with the legal requirements of the state, but also to protect you against significant financial losses as a result of a claim related to bodily injury or damage to property. One of the key things to think about when it comes to insurance is that there are many types of coverages construction companies can look into. Choosing the right one can be challenging but don’t worry, we’ll help you decide which insurance products to buy.
What are the things that you need to know when purchasing coverage for your construction company? Read on to find out.
1. Identify the potential risks in the business or industry. Businesses vary in so many ways, and that includes any unfortunate incident that can happen during day-to-day activities. Companies in the construction industry have their own share of possible risks, and as a business owner in the industry, you can never protect your business if you don’t know what you’re up against. What are the different scenarios that can damage your property or car? Accidents occur regardless of the industry so it’s crucial to know the possible untoward incidents that can happen to your employees or customers; this is where the role of Workers Compensation insurance comes in. If you drive a vehicle to deliver goods or move clients to another location, you may be involved in a road accident. When purchasing Construction insurance, think about the different instances where your business will be vulnerable. From there, it will be easier for you to know which types of insurance products to buy.
2. Buy construction insurance from a reputable insurance provider. Many find the insurance industry intimidating, but what’s great about it is that it employs numerous insurance agents who have the knowledge and skills to assess your business and come up with informed recommendations on which coverage to buy. Bear in mind that like businesses, insurance providers are not created equal. Make sure to do your research to see which insurers have a good reputation and are knowledgeable enough about the construction industry. Visit the websites or social media sites of several insurers. Read online reviews. Request quotes and check which offer the insurance products that meet your business requirements.
3. Keep all the necessary documents on hand. Since several factors have an impact on the type of coverage that you need, be sure to prepare all the documents that the insurance provider asks you. These include details about the type of business, products or services, license, number of employees, etc. Having all the documents on hand significantly helps in expediting the process of buying Construction insurance. Why do you need to be covered as soon as possible? In this industry, projects are mostly granted to companies through a bidding process. Most of the time, a business will be asked if they’re covered so they will be entitled to join the bidding. If you don’t have insurance, your construction company may suffer because you don’t have projects to work on. Also, preparing all the documents and keeping them organized is good practice, especially for businesses.
4. Avoid focusing too much on the price of the premiums. As with everything else, it’s important to keep in mind that you will get what you pay for. Most people are naturally attracted to lower prices. There’s no harm in that since we all want to save some cash, right? But remember that the cheapest coverage available may not be enough to protect your business against significant financial losses. In the same way, the most lucrative option may not always guarantee comprehensive coverage. Over-insurance happens. What if you’re paying for insurance that your business does not need? It’s just a waste of hard-earned money. Price may be a major deciding factor, but purchasing insurance comes with taking a lot of factors into consideration. The key is to pay more attention to the value you get from the insurance. Find the right balance between price and coverage depending on the potential risks that you’ve identified. To give you an idea on the average cost of premiums available for construction companies:
a. General Liability: $99/month
b. Inland Marine: $59/month
c. Commercial Property: $89/month
5. Pay attention to the fine print. Even if you’re working with a reputable insurance agent, it does not mean that he or she will do all the work. One of the things that many entrepreneurs skip doing is reading and understanding the terms and conditions of an insurance product. Sure, the document may come in multiple pages, but it’s crucial to know what’s in it before affixing your signature. The coverage is intended to address the potential risks in the construction industry, but it doesn’t mean that it applies to all companies in that industry. Knowing the inclusions and exclusions can make a big difference in the case of a claim. Know the ins and outs of what you are paying for to avoid any inconvenience later on.
By Pascale Abou Moussa CoverWallet
Pascale Abou Moussa is on the marketing team at CoverWallet, a tech company that makes it easy for businesses to understand, buy and manage insurance – all online and in minutes. The company provides everything from general liability and workers compensation to directors & officers and commercial auto, and everything in between.