Running a construction business can be quite a balancing act. It involves safety, security, and risk management as you build and improve properties. Ignoring these can lead to bankruptcy, as business and personal assets are lost in costly lawsuits. It would help if you had an insurance policy to ensure you do not lose your property to any nasty surprises.
Although you are knowledgeable in your industry, you may not be as knowledgeable in your insurance needs. It leads to some of the most common insurance mistakes. These mistakes may prove costly in the end.
Insurance Mistakes To Avoid
Before getting your insurance policy, get to know what your needs are and get quotes from different companies. Look at the insurance products they have to offer, their coverage limits, and insurance premiums. It helps you get the best business insurance policies and avoid unnecessary mistakes.
Failure To Get Enough Liability Insurance
Like other small business owners, independent contractors can be liable for damages. There are different coverage types of liability insurance, with the most basic being general liability insurance. It is compulsory in some states, though not all. It will help pay claims in case of property damage and bodily injury to anyone who is not a worker. Also, make sure that your general liability policy covers product liability.
Also, get to know if your insurance will cover subcontractors or not. Many insurance companies require that they carry limits of general liability that are equal to or greater than yours. They also need that your contract contains an indemnification clause.
Premises liability insurance covers you if an accident occurs at your office or business property. Other types of liability coverage include premises liability and errors and omissions liability insurance. Errors and omissions liability insurance helps pay claims for negligent professional services lawsuits. It covers you in case of errors and oversights.
Having a good agent will ensure that you check all this and not miss it. They will help you determine if the subcontractors are in compliance and you have cover in case of exposure.
Not Having The Right Insurance Coverage On Your Policy
You do not just need the right coverage, but enough to ensure you are not vulnerable in case of an incident. An independent contractor who builds new homes while their insurance excludes new construction has no coverage. You may need workers' compensation coverage for your leased workers. This covers their medical costs and loss of income in case of work-related injuries and illness.
Make sure that you know your insurance needs. Find insurance companies that understand your needs. Compare the quotes and get the one that best fits your needs and pocket. It will help you make more accurate decisions and get the right coverage. As a general rule, note that the cheaper the policy, the less the coverage.
Buying The Cheapest Policy
A cheap insurance policy might not be a good option in most cases. When you choose your business's plan carefully and make sure it covers all risks from every angle, the costs could save money in the long run!
Get multiple quotes from different insurance companies to shop for the best bargain. Enlist the help of an insurance agent or broker. They will help you compare the quotes and understand what kind of policy you choose. They will also advise you so that you do not leave yourself and your business open to costly lawsuits.
Choosing The Wrong Insurance Agent
The insurance industry is broad, and trying to keep up to date with coverages and other things may be overwhelming. Get an independent insurance agent to help you keep up with your multiple policies. In addition to advising you on the best coverages and policies, independent agents can do this on your behalf. However, they may cost you if they do not know your industry-related insurance.
The right insurance agent will ensure you have adequate coverage and save money. Please do your homework on the insurance agent before hiring them to mitigate this. Ensure that they have extensive knowledge of the construction industry and its trades.
Sticking With The Same Insurance Company For A Long Time
As your company grows, you need to diversify. Your current insurance company may no longer be meeting your needs. Check your policy, read the fine print, and ensure that you have protection. A growing business may need to move to a new location, hire more workers, or get new equipment. With this expansion, it may also need to get further coverage that is not in its insurance products.
Many small business owners are not aware of this. They think they are covered for everything, so they do not keep their policies updated. Regularly review your insurance coverage to make sure that you always have protection.
For Multiple Policies, Have The Same Insurance Company
Having the same insurer will save you money and time. Whether in construction or other industries, buying business insurance from the same insurance company will get you discounts. It will also save you time in case of claims. If a claim is not crystal clear, no insurance company wants to cover the cost. However, if the same company covers you, the delay goes away.
Buying business insurance should save you money instead of costing you money. You will know exactly what to look for if you know your needs. This may keep you from making costly mistakes. Many business owners do not know their needs when buying insurance. They end up with a business policy that does not serve their business purposes.
Make sure your insurance and license are up to date. If they are not, you could pay fines or serve jail time.
Trusted Contractors Insurance Provider in Dallas
If you are looking for contractors' insurance experts in Texas, look no further than Thumann Insurance Agency in Dallas. You will find the advice you need to make the best decisions and get the best coverage. Contact us at (972) 991-9100 to request a quote today.