Posted on: 26 February 2020
As a contractor, you frequently go hands-on in situations where there may be some risk involved. Maybe you walk around on a roof all day or you frequently work with electrical wiring. Regardless of what type of work you do, you need to make sure you and your business are properly covered from an insurance standpoint. Whether you are just starting out in your career or you just want to take another close look at your current policies, here are some tips to keep in mind when choosing contractors' insurance.
Always Read the Exclusions
Getting your roofing business insurance for your day-to-day work doesn't mean that anything and everything that might happen to you up there is covered. Insurance companies may have exclusions in their policies that might result in a denied claim. A professional insurance agent will be able to walk you through the pros and cons of various policies and their options, but be sure to always read the fine print yourself and ask questions if you don't understand something.
Consider Picking Up a Rider, Endorsement, or Umbrella
Different insurance companies use different words to describe the optional coverage you can add to certain policies, but the idea here is the same. If you notice that there is a specific exclusion that concerns you when selecting your primary policy, talk to the insurance company or your agent about whether or not any optional riders or endorsements are available that might cover the specific thing you are thinking about. For example, general liability insurance typically does not cover the contractor if you are sued for faulty workmanship, but there will probably be a way to add faulty workmanship coverage to your policy.
Going with the Minimum Here Is a Gamble
If you are new to the contracting game, your business might be just getting off the ground and you might be looking to cut corners on costs any way you can. But your insurance policy is one area where this is simply not a good idea. All it takes is one accident in which you don't have coverage or don't have enough coverage to cover all of the damages and your entire business could go under. Purchasing an insurance policy is an investment in the long-term health of your company.
When selecting an insurance policy as a contractor, always be sure to read the fine print, including any exclusions and then consider picking up a rider or umbrella policy to cover yourself in as many ways as possible. Talk to an insurance agent today for more informationShare