Built Blog

How to Reduce Your Contractors Insurance Cost

by builtinsurance 26 October , 2022

Discussed in previous blog posts, it is incredibly important for all kinds of contractors to obtain comprehensive insurance policies. As a contractor, having general liability, workers compensation, and commercial auto coverage provides a vital means of safeguarding you, your employees, and your business as a whole over time.

While the protection they provide is invaluable, insurance plans are nevertheless a real expense that factors into your overall budgetary considerations. For some contractors, particularly those operating on smaller budgets, there is concern that insurance will be too high of a cost to bear. It is important, therefore, for contractors to find ways to reduce their insurance costs while still maintaining the coverage they need. As a leading insurance provider for contractors across California, Built Insurance Brokerage is here to offer some incredibly useful tips.

Take the Time to Shop Around

There are a number of effective ways that contractors can lower the amount(s) they pay for insurance. One thing to do is take the time to shop around and compare rates from different insurers. Make sure to get quotes for both bundled and unbundled policies to help make sure that you ultimately receive the best deal possible. As new programs come to the insurance marketplace each year, evaluating everything available will only work in your favor.

Use One Broker for Multiple Policies

Another way to reduce your contractors insurance costs is to bundle your policies and work with one broker rather than splitting things up. You can often save money on broker fees and policy fees if you allow a main broker to represent you on multiple policies. If you agree to let your broker manage insurance policies for your entire business rather than just one or two areas of coverage, it is likely that they will be willing to lower the fee-based costs you’re responsible for.

Have Your Broker Review Coverage Every Year

Having your broker review your contractors insurance policies each year is also an important means of decreasing overall costs. The insurance market continues to evolve over time, and it is therefore quite beneficial for your broker to see if there are any changes that can be made to keep costs as low as possible. You may also want to consider speaking with your broker about raising your deductible. The deductible is the amount you are required to pay out of pocket before your insurance company starts paying. By raising your deductible, you will be able to lower your overall premium costs.

Work on Risk Management

Finally, you may be able to reduce your contractors insurance costs by working with a risk management consultant. A risk management consultant can help you identify and mitigate risks within your business. This can help lower your overall insurance costs by reducing the chances that you’ll need to make a claim.

Contact Built Insurance Brokerage Today

We hope that this guidance proves useful to you. If you’re a contractor in need of insurance policies for your business, Built Insurance would appreciate the opportunity to speak with you at (805) 413-4331. You can also conveniently get an insurance quote from us online.

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