The Top Questions Contractors Should Ask Their Insurance Broker

When it comes to insurance policies, contractors have a lot of unique needs. That’s why it is so important to find a knowledgeable and experienced contractors insurance broker who has an in-depth understanding of your business and can help you get the coverages you require. Here are some of the top questions that contractors such as yourself should ask your insurance broker:

1. What Types of Insurance Does My Business Need?

There are many different types of insurance that contractors can purchase, from general liability to workers compensation and commercial auto. Based on your unique circumstances, your broker can help you determine the specific types of coverage that are right for your business.

You will also want to inquire as to whether your Business Personal Property is covered in the proposed insurance policies. Inland Marine insurance policies include not only items you own, but also items within your care/custody and control like an appliance you are installing. These policies can include tools (main & miscellaneous), office contents, tractors/bobcats, and even items you don’t own but are in your possession during transport and/or the installation process.

It is worthwhile to ask your broker if they have exclusive insurance programs available. Brokers often have in house programs where you can save money by bundling policies or switching policies from other providers over to them.

2. How Much Coverage Do I Need?

Your broker will be able to recommend how much coverage you need based primarily on the size and scope of your business. In making this determination, they will also take into account any special risks that your business may face in its daily operations.

We highly recommend that any time you get a job outside the normal scope of your work, such as new construction, going below grade more than 3 ft., or going above 2 stories, you ask your broker if you are sufficiently covered. If you aren’t, you’ll want to consider additional coverage options.

3. How Much Will My Insurance Premium Be?

Your insurance premium is based on a range of factors, including which type(s) of coverage you purchase as well as the amount of coverage you require. Your broker should be able to give you a clear estimate of what you should expect your premium to be.

4. What is the Claims Process?

If you need to file a claim, your knowledgeable broker can help you navigate the process. They will be familiar with the requirements of your policy and can help you gather the necessary documentation.

5. What is the Difference Between Occurrence-Based and Claims-Made Coverage?

Occurrence-based coverage protects you from claims that arise out of incidents that happen during the policy period, regardless of when the claim is filed. Claims-made coverage, on the other hand, only covers claims that are filed during the policy period. Your broker can help you decide which type of coverage is right for your business.

6. How Often Should I Review My Coverage?

Your insurance needs may change over time, so it’s important to review your coverage on a regular basis. Your broker can help you determine if your coverage is still adequate for your current situation, and make recommendations if modifications are deemed appropriate.

7. What Happens if I Cancel My Policy?

If you decide to cancel your policy, your broker can help you understand the various implications involved. They can also advise you on whether or not you need to purchase a new policy. The decision of whether to cancel your policy (or policies) can have serious ramifications for your business, and should not be considered lightly.
 

Built Insurance is a Leading Contractors Insurance Brokerage in California

Asking the above questions should help you navigate the world of contractors insurance. At Built Insurance, we have helped a variety of contractors obtain the insurance policies they need to run their businesses successfully. Please request your no-obligation quote online, or give us a call at (805) 413-4331 to discuss your needs today.