When was the last time you made a change to your existing contractors insurance policies? If you’re not conducting an annual review of your coverage, you could be leaving yourself exposed to unknown risks.
On the plus side, a quick phone call to check in with your insurance agent could have benefits beyond fortifying your coverage… you may qualify for discounts or lower rates, as well.
Still not convinced you should review your current coverage?
Here are a few of the things which may have changed in your contractor business this past year which could impact your insurance rates… or leave you exposed to unnecessary risks.
Are You Driving the Same Vehicle?
Did you buy a new work truck, SUV, van or other vehicle this year? Sure, insuring a new work truck is kind of a no-brainer. But what other vehicle changes did you make this year? If you purchased a new vehicle for your personal or family use that you will also use for work purposes, you may have a coverage gap if you haven’t included it in your contractors insurance.
What about vehicles you’re no longer driving?
Don’t pay for commercial auto coverage for a vehicle that’s just sitting unused somewhere, either.
Who’s Helping You?
Your contractors insurance may need to be adjusted if you’ve hired (or fired) employees, or if you’re planning on utilizing subcontractors to help you get the job done.
Workers’ comp insurance is often required if you have employees working for you. Your workers’ comp premiums are calculated per payroll dollars. If you’ve added new employees or let people go this past year, you may need to make adjustments to your workers’ comp insurance.
What Equipment are You Using?
If you’ve expanded your equipment or tools this past year, you’ll want to be sure you’re covered against loss, damage, or theft. Let’s say you recently purchased a new generator, and you’re transporting it to a project site one morning in a trailer. You drive over a particularly rough patch of pavement, causing the trailer gate to pop open and sends the new generator flying out into the street.
Let’s hope your tools and equipment coverage is up to date and your new generator has been listed as a scheduled item.
Where’s Your Base of Operations?
Are you running your business out of a home office, a warehouse, rented office space, or building that you own? If you’ve moved your business location, expanded your office space, or downsized to a home office, your commercial property coverage may need to be adjusted.
Even a business operating out of a home has it’s own unique insurance requirements.
If a client comes to your home office to go over plans or sign a contract, and slips on your front porch, your homeowner’s insurance may not cover the incident. And if a kitchen fire spreads and damages your office equipment and other work materials, you may also find an unpleasant coverage gap for your business activities. You may think your homeowner’s insurance is enough to cover your risks, but you’d be surprised to learn what it won’t cover.
An Annual Contractors Insurance Review: Peace of Mind and No Surprises
You take your vehicle in for an oil change every 6,000 or so miles. You go see the dentist twice a year. You file your quarterly tax returns, no exception. Consider an annual review of your contractors insurance policies in the same light.
A regular check-up will help keep your safety net in good working order, prevent coverage gaps, and your premiums and rates right where they need to be.
In other words, a quick call to your insurance agent will give you peace of mind, and keep unpleasant surprises at bay.