5 Ways to Get Lower Rates on Your Contractor Insurance

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Independent contractors and small business owners know that the best way to improve cash flow is to bring more cash in, and pay less out. Sounds simple enough, but the costs of doing business can’t always be negotiated down.
One way you can reduce your operating costs is by lowering the rates you pay on your contractor insurance.

Here’s how to pay less, without giving up coverage.

#1. Review Your Current Coverage

The first place you can look to lower your insurance rates is on the policies that you already carry. If you have fewer employees, have sold equipment, or have retired vehicles from use, you may be able to find potential savings in your current policies.

Be on the look out for these changes:

  • Employee roster
  • Equipment bought or sold
  • Vehicles no longer in use
  • Type of construction work performed

Any changes in your business could mean a lower rate is available. Examine your existing policies, or talk to your broker to see where you can save money on your existing coverage.

#2. Calculate Before a Claim

Before you file a claim, take a quick moment to calculate and consider…

Can you afford a minor loss?

The number of insurance claims you file can impact the rate you pay. If you are considering filing a claim for a small incident, ask yourself if you can afford the loss.

If the answer is yes, you may save more money in the long run with lower contractor insurance premiums.

If your favorite hammer was stolen from the bed of your truck on the way to work, you can probably replace it without a claim.

If you were involved in an auto accident on your way to the jobsite, and you are facing vehicle damage, lost and damaged equipment and tools, and possible injuries to yourself, an employee, or a third-party…

Make the claim.

One way you can reduce your operating costs is by lowering the rates you pay on your contractor insurance.

Here’s how to pay less, without giving up coverage.

#3. Increase Your Deductibles

If you decide that paying out of pocket for small losses is an affordable option to prevent premiums from increasing, the next logical step is to increase the deductibles on your policies.

Take the biggest deductible amount you can afford.

Usually, a higher deductible means a lower premium rate.

The amount you save in annual premiums may be more than enough to cover your higher deductible when you finally do need to file a claim for a big-ticket loss.

#4. Don’t Let Coverage Lapse

Construction can sometimes be a seasonal profession, and it could be tempting to let certain coverages go in between projects, or during off-seasons.

If you want to save money, don’t do that.

Letting coverage lapse can actually lead to increased rates. It can also put you at risk for not getting coverage in the future.

Many insurance companies offer premium discounts for no-lapse coverage.

Determine the best policies that you need for your contractor business, and keep your policies active. Stopping and starting policies won’t save you money, and it can cost you even more in the long run.

#5. Combine Coverage

If increasing cash flow and protecting your profits is a priority, then there is a very good chance that you will use more than one contractor insurance policy to protect your business. And that gives you one golden opportunity to save some money with very little effort.

Combine your coverage.

Most insurance companies will offer a discount to you when you combine, or bundle, your coverage. Combine a general liability policy with an inland policy, for example, and you receive a discount on the premiums for both.

Talk to your broker about the ways you can bundle coverage on:

Saving money on your insurance rates gives you more cash flow for your business. And who doesn’t want to see more cash?

Remember…

Combine your policies together, review them regularly to make sure they fit your current business needs, increase your deductibles, don’t make claims for the small stuff, and be sure to maintain your coverage at all times.

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5 Ways to Advertise Your Construction Insurance Coverage

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There is a benefit to your construction insurance coverage you may not have considered. Your coverage makes you more attractive to future clients, and the homeowners and bid decision makers that you want to work with.

Insurance coverage alleviates your clients’ fears.

Project owners want to know that an accident on their property won’t cost them. They want to know that you will finish the job if something goes wrong. And they certainly don’t want to be asked to pay the price for it.

You are smart enough to carry builders risk insurance to protect your projects from accidents and worst-case scenarios.

So let future clients know about it!

Luckily, advertising to your future customers is easy and cost-effective in today’s world of digital marketing, and you won’t have to take out a billboard to do it.

Here are five ways to advertise your builders risk insurance coverage (without paying for a billboard):

1. Your Website

The way people shop for contractors has changed.

When a consumer goes searching for a contractor, you can bet they’ll be looking online. In fact, 89% of consumer purchases involve online searches.

Your customers will be looking for your website, and you won’t get a second chance to make a first impression. You have only moments to grab their attention with your website and convey that you are professional and trustworthy.

Make sure it’s optimized for search, loads quickly, and is responsive (mobile and tablet friendly).

And don’t forget to let your website visitors know about your builders risk insurance coverage.

2. Social Accounts

Are you using Facebook, LinkedIn, Twitter, or any other social accounts to advertise your business?

These are great places to put important information, including the fact that you are insured and bonded.

Make sure you have social icons prominently displayed on every page of your website where people can easily navigate to your social pages to follow you.

3. Email Newsletters

Do you follow up with your clients by emailing a weekly, monthly, or quarterly newsletter?

If you aren’t using email marketing, here are a few reasons you may want to start:

Emails are an easy way to reach your clients where they are (which is probably on their phones!)

Email newsletters are easy to create.

Email marketing is inexpensive.

Email newsletters are a perfect place to ask for referrals.

Emails are a perfect way to keep your clients informed. Show off your recent completed projects, give them some tips or tricks that they can use, and let them know of changes to your business.

For example, that you have updated your construction insurance coverage!

4. Electronic Business Cards

No matter how much technology is changing the way we do business, the business card will probably never go out of style. But today’s business cards are less about paper and print, and more electronic in nature. Electronic business cards, or vcards, are a modern way of getting your contact information out to new leads. Make sure your vcards advertise the fact that you are fully insured and bonded.

5. Online Directories

Gone are the days of the phonebook. Today, online directories are the best place to have your business found, and reviewed, by customers. Making sure your business page is accurately set-up on an online directory should be a part of your advertising plan.

Which directories should you be on? The most important one has to be Google+. Google is the king of all search engines, so you want to be involved in the social networks and directories that they offer. Google+ Local allows users to discover, review, and share businesses like yours.

Don’t forget Yelp, Yellowpages.com, and any other online directories that may be targeted towards your specific niche, like DirectoryForContractors.

Your digital marketing efforts will be even more effective when you are putting your best foot forward to potential new clients. Don’t forget to include information about your construction insurance coverage in all of your online marketing channels.

Construction Insurance

What Does Liability Insurance Cover for Painters?

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You know exactly how to use the perfect paint, stain, and varnish to completely transform a surface from ordinary to extraordinary. You’re skilled at precision, and have an eye for color. You know the right tools to use to get just the right effect on every finish.

But brushes and rollers aren’t the only tools that you use in your painting contractor business.

Before you even set up a ladder and open a can of paint, you need to have general liability insurance.

As a matter of fact, general liability (GL) is the bare minimum insurance you need to conduct business in any state.

Why Do Painters Need GL Insurance?

Whether you are an independent artisan or a small business owner, GL is the one thing standing between you and the risk of lawsuits over

  • Accidents
  • Injuries
  • Illnesses
  • Property Damage

Let’s face it. We live in a society where lawsuits are the norm.

If you had a claim brought against your company, the potential costs of judgements, settlements, court costs, and attorney fees could be more than you can pay.

One incident could put you out of business. Or worse.

GL insurance protects your business assets. And if you are the sole proprietor of your business, it protects your personal assets, as well.

What Does General Liability Insurance Cover?

What sort of protection does GL insurance offer you as a painting contractor?

1. Bodily Injury & Medical Expenses

If a homeowner gets tangled in the ladder that you’ve been using to paint a ceiling, guess who is at risk for a lawsuit.

Accidents happen.

But when an accident happens to someone else as a result of you doing your job, there could be a steep price to pay. When the homeowner gets tangled in your ladder and falls, the medical bills could get expensive.

Don’t worry about paying for the medical expenses out of your own pocket. That’s what your insurance coverage is for.

Insurance is there to safeguard you in the event of such an accident. Your policy will cover medical expenses, and, in the absolute worst of unthinkable situations, funeral expenses and court-awarded compensation if a third-party injury results in death.

2. Completed Products

Did you know that a job you’ve already completed can still be a risk for a lawsuit? If your completed work results in an injury to a third-party, GL will protect you from expensive legal expenses and damages (up to your policy limits.)

Move forward from your finished jobs with confidence, knowing that you don’t have to constantly be looking over your shoulder.

3. Property Damage

Oops. Ok, so you probably don’t plan on inflicting a lot of unintended property damage during the course of your projects, but it does happen. Oil based paints, stains, paint removers, ladders… painting is an art that can carry a bit of a risk to someone else’s property.

If someone alleges that their property was damaged by your painting business, don’t panic about the high costs of a lawsuit. That’s what contractor liability insurance is for.

4. Advertising Injury

Remember that picture you found on the internet and loved so much you used it for your Facebook business page, and for some print collateral?

Turns out it had a copyright.

Even though you didn’t know it at the time, or do it on purpose, you would still be facing some major liability here. Advertising can be tricky business, and with GL you are covered in case someone alleges that you caused non-physical damage through your advertising.

When you are running a business, there is a lawsuit waiting for you at every turn. General liability insurance is the answer. You wouldn’t begin a paint job without getting your tools and supplies in order, and you shouldn’t paint a single stroke unless general liability insurance is among them.Construction Insurance

What General Liability Insurance Doesn’t Cover

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Operating a business can be risky. Lawsuits happen every day, and when you operate a business or work with clients, there’s a good chance one could happen to you.

Not to be negative, but it’s true.

And lawsuits mean attorney fees, court costs, and the possibility of a judgement so large your business couldn’t pay the bill.

It may sound like a far-fetched scenario, but it happens more than you might think.

As a matter of fact, lawsuits are so common that most states require your business to carry general liability (GL) insurance.

If you are sued and have GL coverage, your insurance company pays for:

  • Judgements and damages you owe to the person suing your business
  • Attorney fees
  • Miscellaneous court costs, including evidence expenses

But being covered doesn’t protect you from every lawsuit under the sun.

Here are some things that your liability policy doesn’t cover:

Your Property

The good news is that GL does cover third-party property damage.

The kind of damage that occurs when your employee accidentally backs your work truck across the lawn and through the fence of a neighboring home during a remodel project.

Hey, he thought he was in “Drive.”

It was an accident.

GL covers this, and many other kinds of property damage. But it doesn’t cover damage to your own property.

If your property is damaged, don’t look for GL to cover it. You will need commercial property or builders risk coverage for that.

Your Vehicles

10 million. That’s the number of auto accidents that happen each year.

That’s nearly 3,000 accidents every day.

General liability doesn’t cover your vehicles if you, or one of your employees, is involved in an auto-accident in your work truck.

And neither will your personal auto policy. (Not if you are using your vehicle for business purposes.)

That’s why contractors add commercial auto coverage to their GL coverage; because trucks, vans, and other vehicles are crucial to getting the job done.

Your Employees

When a neighbor or homeowner accidentally gets injured on your jobsite, GL covers it. Any third-party bodily injury is part of that coverage.

Your employees, however, are a different story.

And since construction is one of the riskiest businesses out there, your guys are putting their safety on the line each time they show up to do their job.

Workers’ comp insurance is there to cover the medical expenses, lost time, and other costs associated with an injury to one of your employees.

Your GL policy won’t cover any of these things.

If you have employees and only GL, you could be looking at a big expense when one of your employees gets hurt on the job.

What’s Covered with General Liability… and What’s Not.

To sum up, here’s an easy way to remember what GL covers, and what it doesn’t:

  • General liability is there to protect your business from third-party (non-employee) lawsuits.
  • The keyword is third-party; if it belongs to you, GL doesn’t cover it.

If a person not involved in your business wants to file a lawsuit over property damage, bodily injury, accidents that happen on your property, reputation damage, or even copyright infringement, GL will protect your business from a potentially devastating loss.

General liability is a great foundation for protecting your business. When you start adding additional coverage for your employees, vehicles, and projects to GL, then you end up with a business that is ready to weather just about anything.

5 Reasons Your Construction Business Isn’t Profitable

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People start a construction business for lots of reasons. Chances are, whatever the reason was you started your own business, you’re also in it to make some money. If you aren’t bringing in enough profit, or even worse, losing profits, then it’s time to make some changes.

Here are the 5 reasons your construction business isn’t as profitable as you want it to be.

1. Spending too much in the Beginning

It can be tempting to run out and make new purchases in the first days of starting your own business. After all, you will need plenty of tools and equipment to get the job done, and since you can now write-off a new truck and new laptop, maybe you ought to get those while you’re at it.

Be careful. Investing too much money upfront can use up cash flow that you may really need later. Look for alternatives that can free up cash and help your construction business turn a profit.

Can you lease specific equipment needed to do a certain job or project, and include the leasing costs in your bid? Can you use your current tools and equipment to get the job done?

Eventually, your business may grow big enough that you need to invest in order to make more money. But in the beginning, gently used or rented equipment can often get the job done just as well.

2. Hiring Unnecessarily

Now that you are the boss, it is time to get some bodies in action. You finally get to be a supervisor, instead of the labor.

But the costs of an employee is much more than just their hourly rate of pay.

Unemployment taxes, federal and state taxes, workers’ comp insurance, and safety compliance training will need to be invested into each and every employee.

Can this portion of the job be profitable to hire another contractor? Subbing out portions of a job are great ways to reduce the cost of having an employee. BE CAREFUL THOUGH!

Make sure each subcontractor has their own insurance in place before allowing them on your jobsite. Hiring cheap casual day laborers may be inciting, but you’re exposing your business to lawsuits, injury claims, and state fines.

If you can do the work yourself, get by with fewer employees, or subcontract portions of the job, it will increase the amount of cash you have on hand for your business.

3. Not Having a Plan

Having a truck, some tools, and a craft aren’t the only parts that make up a savvy business owner. If you want to run a successful, profitable construction business, you will need a plan.

Even if you aren’t looking for investors or a loan, you need a business plan that clearly defines your strategy to make money year-round. You need to know how to measure cash flow, and how to define profitability for your business.

One thing you definitely need to plan for is seasonality. If you live in a climate where it snows five months out of the year, and most of your work is outside, how will you be able to keep up cash flow when the temperatures are freezing?

Understanding the industry, seasons, and properly adjusting your bids to cover the down months will make sure your cash flow keeps your business in the black year round.

4. Spending Money on Advertising instead of Modern Marketing

Advertising and marketing are not the same thing. Advertising is spending money to shout your message at people who may not want to hear it. Modern marketing is about using your website, blog, and social media accounts to connect with people who are looking for your specific services.

Don’t throw your profits into television, radio, and print ads. Instead, utilize modern marketing to bring you more leads and new customers at a fraction of the cost.

5. Not carrying the right Business Insurance

You may think you are saving money by skimping on contractor insurance, but a penny saved today can cost you an arm and a leg, and even your entire business if an accident occurs. The risk you take by not covering your business with insurance is far greater than the cost of your monthly premiums.

You can even get lower rates on your premiums by carrying the right amount of coverage consistently, instead of letting coverage lapse during slow seasons and trying to pick it back up when you get busy again.

Construction Insurance

7 Hidden Dangers that put a Contractor’s Tools & Equipment at Risk

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What good would you be without your tools and equipment? Like a dentist, surgeon, or chef, a contractor needs a special set of tools to get a job done.

As a contractor, you probably put a lot of thought into selecting the right tools for the job. But how much thought have you given to protecting your tools, outside of picking out a box for your truck?

Here are 7 hidden dangers that can put your tools at risk, slowing your progress and sinking your profits.

1. Unmarked tools

Marking your tools and equipment with a permanent identification, such as your name, business name, and business phone number, will make it harder for stolen items to be pawned or sold online, and easier for them to make their way back to you.

A permanent marker will get the job, but engraving your information on a high-value tool will be far more effective.

2. Unsecured tools

Leaving tools unsecured, even for a second, is asking for trouble.

Maybe it is a couple of items you’ve tossed in the bed of your truck while you drive a few blocks down the road. You’ve done it a hundred times and nothing bad has ever happened.

Except this time, something falls out of the bed of the truck. This time, something falls off of the trailer. Or maybe someone grabs your new saw while you run into the gas station for a Red Bull.

It just takes a bump in the road, or a dishonest citizen to ruin your day. Lock it down, either in the cab, in the shell, or in a box.

3. Placing too much trust in your Toolbox

Sure, you invested a good chunk of change into your saddlebox. It’s mounted well onto your truck. It’s made from stainless steel. You feel good about its ability to protect your equipment.

But even a drill resistant lock won’t deter someone who really, really wants to get at what’s inside.

Toolbox locks can be busted, the box itself can be hacked to pieces, or in an extreme circumstance, cut from the truck itself.

Don’t fall into a false sense of security that your toolbox is foolproof. It may be a very strong deterrent to theft, but where there is a will… there is usually a way.

Covering your tools and equipment with your contractor insurance will provide you with the ultimate safety net in this worst-case scenario. If your most valuable business assets are stolen, you won’t have to pay out of pocket to replace them yourself.

4. Not tracking Tools

Who’s got what? On a busy project with a few extra employees, do you know who has your stuff?

Tracking your tools is the easiest way to make sure that nothing accidentally goes home with one of your guys, or gets left behind on the site at the end of the day.

Try embracing new technology and using a digital, cloud-based tracking system that you access from your smartphone. Super easy, and accessible to everyone.

5. Well-meaning Employees

Sure, they mean well. But when an employee is not financially invested in the tools and equipment they are using, they may be a little less attentive and careful as you would be.

Your best guy could show up at work and swear that he had your new cordless with him when he left his house, but has absolutely no idea where it is right now at this moment. He only made one stop at Johanna’s Deli on the way to work…

Lost or stolen, it doesn’t matter. It’s gonna cost you either way.

6. Drivers on the Road

Teens texting. Moms with DVDs playing and kids yelling in the back seat. Distracted commuters with a coffee in one hand and the car radio dial in the other.

You are rarely more vulnerable in life than when you are on the road.

If you are transporting your tools and equipment to a project in your truck, van, or trailer, an unintended accident could seriously damage important equipment. Broken equipment won’t do you any good, and the cost of replacement and repairs could be huge.

7. Unsecure Jobsites

Your project site is an alluring place to the neighborhood kids and teens after dark. And you know it, because you’ve seen the evidence for yourself: garbage left behind, graffiti, or worse…

Don’t leave a jobsite vulnerable when you leave at night. Secure tools and equipment in a lock box or container to protect it from troublemakers that can’t seem to stay away from your project after hours.

The Best Way to Protect Your Tools and Equipment

No matter what you do, your most valuable assets are at risk on the project site and off. Since your job requires you to transport your tools to and from projects at different locations, they are even more vulnerable to loss, theft, and damage.

When locked boxes and careful accounting of equipment fail, the right contractor insurance will still have your back.

Inland marine is a special form of insurance that will cover your tools and equipment as they are in transit to your projects. It also covers blueprints, plans, and other essential documents, too. Since you spend so much time transporting your tools from one site to the next, inland marine is a must-have policy that protects you from theft, loss, and damage that can occur along the way.

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15 Ways Contractors Can Avoid General Liability Claims

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It doesn’t matter how carefully you adhere to safety standards. If you are in construction, there is a chance that someone can get hurt, or something could get damaged. And when a third-party person decides that you are at fault for their injury, a lawsuit is never far behind. That’s why your construction business carries general liability coverage.
There are steps you can take, however, to reduce your risk of a lawsuit coming your way, and to avoid filing that claim.

Here are 15 ways you can avoid a general liability claim from happening in the first place.

1. Keep the lines of communication open

When you work with homeowners, keeping an open line of communication with them should be a top priority. How does this prevent claims? Let’s ask a doctor. In a study that looked at malpractice claims, doctors that had never been sued spent an average of three minutes longer conversing with patients and engaging in active listening than doctors who had been sued.

The takeaway from this study is: clients who feel like they are being included in conversations, listened to, and know what is happening are less likely to sue. And that means you don’t need to make a claim.

2. Maintain adequate project site lighting

A dark work space is just inviting a fall or other kind of bodily injury claim. Adhere to OSHA illumination requirements and make sure your project site has adequate natural or artificial lighting in all construction areas, stairways, corridors, and storage areas.

3. Keep a clean site

A clean project site is a safe project site. Scrap lumber with protruding nails, spills or wet surfaces, and miscellaneous debris should be cleared from work areas in and around the building at all times to prevent bodily injury from trips or falls.

4. Keep exits clear:

Never allow an exit to be obstructed by equipment, supplies, debris, or any other obstruction that could lead to an injury. Exits should always be clearly marked, unlocked, and free from obstructions in case of fire or other emergency.

5. Make fire prevention a priority:

Keep flammable materials and chemicals such as paint, aerosols, and lacquers separate and in a plastic container. Never store them near a fire or source of heat. Properly dispose of any rags or other materials that come into contact with flammable materials. Be sure all employees are trained in fire prevention practices, and make these a priority.

6. Test pipe systems before construction starts:

Water damage is the leading cause of property damage, and you don’t want to be responsible for flooding a neighbor’s property or apartment. Prevent water damage by testing pipe and other water systems as early as possible in the project.

7. Secure the work area:

Want to limit the amount of unauthorized visitors to your site? Tape off the work area so no one can come on the jobsite without approval. Securing the project site can be a deterrent to third-parties that may accidentally wander on to the site and be at risk for injury.

8. Get employees involved:

Workplace safety doesn’t have to start and end with you as the business owner. Get employees involved in your OSHA safety training, and invite collaboration. They may see opportunities to improve onsite safety that you have missed.

9. Don’t rush the work:

Poor workmanship can lead to a construction defect; and that can lead to a completed products claim. Take your time, and make sure your employees and subs know to do the job right the first time.

Did you know? Construction Defect claims from someone not doing a good job are not covered by general liability insurance. But our general liability program offers Faulty Workmanship coverage in nearly every state. You can get up to $10k in coverage for as little as $30 per year. So you are covered in case one of your employees isn’t performing up to your standards.

10. Pay close attention to installation:

Even the best quality materials could result in a construction defect claim if they aren’t properly installed.

11. Inspect materials before using them:

Double check materials for manufacturer defects before installing them on a project site. You don’t want to be responsible for a construction defect claim because you used a defective (or improper) material on a job.

12. Market your business with class:

Digital marketing is a great way to get the word out about your services, but don’t boost yourself up by tearing down the competition. If you say something that could damage the reputation of a competitor on your blog or social media accounts, you could be held liable for libel or slander.

13. Don’t use other people’s images or names without consent:

A picture of your favorite celebrity might make a fun image for your website, blog, or social accounts, but it can also send you on a one-way trip to an advertising injury claim. Just because a celebrity is a public figure, doesn’t mean you are allowed to use their name or photos without permission. Make sure that any music, photographs, videos, writing, and content that you use on your website, blog, social media, or printed materials belongs to you, or that you have the right to use it to avoid copyright claims.

14. Don’t be offensive in your marketing:

There is a fine-line between humor and offense. If you want to be funny in a blog post, you may want to get a second opinion to be sure you aren’t being offensive to a group of people or an individual.

15. Don’t speak badly about clients:

If you have had a bad experience with a client, don’t air it publicly or privately. Talking about someone badly (slander), or writing something bad (libel) about a client in a way that could be damaging to their reputation can lead to a claim. The same goes for the competition: an untrue statement that could damage their reputation could send you straight to court.

Your construction business needs to work hard to avoid lawsuits from third-parties. If someone suffers bodily injury, property damage, or injuries to their reputation as a result of your business, you can be facing a suit that could cost you everything.

Carrying adequate general liability insurance coverage, and not letting your coverage lapse, is the best way to protect yourself from an expensive lawsuit, court fees, lawyers fees, and other costs of an expensive lawsuit. Do your part to reduce the risk of an injury or damage happening in the first place, and your construction insurance will be there for you, just in case you need it.

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How Your Location Affects Your Course of Construction Rates

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Justin and Sam are both remodeling contractors. The two men have very similar business models: their companies are the same size, and they take on similar projects. What’s different for the two contractors, however, is the price they pay for contractor insurance.

Justin started his remodeling business in Texas, where he relocated to benefit from a favorable job and housing market. But Justin is also doing business smack dab in the middle of Tornado Alley, and he has seen firsthand the devastation and disaster a tornado can bring three out of the last four years.

Sam, on the other hand, is doing business in sunny Southern California. He works all year-round, and loves the weather — until late summer and early fall, when wildfire season starts.

Course of Construction Protects your Project from Disaster

Tornados. Fires. Floods. Earthquakes. Hurricanes. All across the United States, there is an extreme weather or natural disaster event that happens regularly in your hometown.

If one of these events, extreme weather or natural disaster, strikes a project while you are working on it, it could stall your progress, ruin your materials, and cost you out of pocket to recover, repair, and replace the damage.

That’s where a course of construction policy, which is also known as builders risk, protects your construction business.

When you need to clear debris, replace materials, repair damage, and get back on schedule, your course of construction policy keeps you from paying the full price for these geographical (and unfortunate) events.

Severe winter storms, hurricane season, Tornado Alley, earthquake zones. These events do more than just define your location; they also define the costs of your builders risk insurance policy.

Course of Construction: Different Rates in Different States

Your rates for a builders risk policy will vary from state to state, and even by county or city, since different regions or territories may be more at risk for a particular event than another.

For example, Sam has to contend with wildfires, but his particular county isn’t at risk for earthquake activity compared to other places in California.

There are numerous factors that come into play in determining your contractor insurance premiums, and the geographical location is one of them.

You may not be able to control the fires, floods, tornados, hurricanes, or earthquakes where you live, or the costs of doing business in that region. But many of your insurance premium costs are within your control, such as maintaining the right coverage, being on time with payments, and not making unnecessary claims.

Insurance costs are a part of doing business, but when you live in an area where a disaster is more likely to happen, the cost of not having coverage is even greater.

Construction Insurance

How Course of Construction Insurance Gives You Superpowers

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If you could pick a superpower, what would it be? You may want to fly, have invisibility, or even laser-beam eyes, but there is one super power even better than that…<
The power to see the future.

If you could predict the future, you could protect the people and things that are important to you. You could probably even put a few extra dollars in your pocket.

Builders risk insurance can do that for you: it protects the things that are important to you from disasters, and puts more money back into your business.

Ok, so construction insurance isn’t quite as exciting as superpowers, but here’s an example of how you can use it like a real hero:

Let’s say you are working on a remodel project, and you don’t have builders risk coverage. You feel confident that everything will go as smoothly on this project as it did on your last.

Unfortunately, this project is different than every other remodel you’ve completed in the past year. Because this time, on this remodel, a fire breaks out, quickly destroys your progress, as well as most of the materials and supplies you need to complete the job.

Fortunately, the homeowners and their belongings are safe and untouched.

Unfortunately, the cost of repairing the damage, replacing the materials, and completing the remodel is on you.

In order to complete the project, you have lost all of your profits, and have paid a considerable amount out of pocket. The entire remodel is a loss to your business.

Now imagine a different scenario…

And this time, you have covered your project with builders risk — just in case.

And when the flames of the fire have been extinguished and the extent of the damage is known…

You pick up the phone.

You call your insurance broker and make a claim. Then you start repairing the damage, and replacing materials.

The homeowners are thrilled that you are able to recover so quickly from a terrifying incident. You put in some overtime, adjust the schedule, and even finish the job on time.

Don’t be the guy who can’t see the disaster coming.

Here’s what you need to know to come out on the right side of a worst-case situation:

Builders risk is also known as course of construction insurance. What this coverage does is protect you from the accidents and events that can destroy everything you have worked to build in your business.

  • Fire.
  • Flood.
  • Earthquakes.
  • Vandalism.
  • Burglary and theft.
  • Extreme weather.

Projects can go up in flames, materials and supplies can be ruined by floods and rain, and earthquakes can shake the very foundation of your business. This happens every day on job sites all over the US.

The worst thing about these events?

You can never see them coming.

If you have course of construction insurance, you don’t need to know the exact date and time that one of these disasters will strike. Your project, and business, will be protected from the worst of worst-case scenarios.

A builders risk policy gives you the power to protect your project and profits. It protects you from the extreme weather, unfortunate accidents, and powerful acts of nature that you can never see coming.

Basically, it gives you superpowers.

Good job, hero.

Construction Insurance

Most Important Insurance for Photographers

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Photography business insurance isn’t the most striking topic on the internet, we’ll admit that. It can be especially un-fun for free-wheeling creative types who would much rather be out in the world working their craft.
Unfortunately, ignoring business insurance can be the death blow for a photography business.

Why?

Photographers face unique business risks.

High quality camera equipment is expensive to buy and equally expensive to replace if it’s damaged. Many photographers take their art from the studio out into the world, and place their expensive equipment at the mercy of the elements.

If you’re working with clients, you’ve got a whole other set of potential risks to worry about. People are notoriously fickle, and have been known to cause trouble when their special event isn’t photographed exactly as they’d have imagined it should be.

 

 

Since there are so many types of insurance, and so many types of photographers, we’ve made it simple to figure out what you’ll need to worry about with this list of insurance types most important for any photographer.

If you’re concerned with your own specific specialty, check out our 60-second photography business insurance wizard to see where your photography business faces the most risk.

Otherwise, here’s a list of the most important lines of insurance any photographer will want to consider:

Business Owner’s Policy (BOP) for Photographers

The simplest way to get broad coverage for your photography business is to buy a Business Owner’s Policy. It’s also called a BOP. A BOP combines three common insurance coverages most important to protect nearly all small businesses. It usually includes:

  • General Liability – this would come in handy if your business is sued as a result of property damage or injury that occurred as a result of your photography work. Imagine a client came to your studio and tripped over a light cord, fell and broke her arm. Or if you’ve got employees, general liability would cover any damage they caused while they were representing your business. And if you ever get sued for copyright infringement of someone else’s work, there’s coverage to have your back.
  • Commercial Property – all that expensive photo equipment you use to take photos edit your work is protected in your BOP under commercial property. Whether your own or lease a studio, the building and the items, your lights, props, cameras, computers, and other necessary equipment is covered.
  • Business Interruption – what would happen if your studio burned down, or flooded. Your equipment would be covered under your commercial property policy, but you’d have a hard time making a living while you waited for new equipment to arrive, or repairs to be made. Business income insurance covers the income you’d lose if you couldn’t operate your photography business because of some type of damage to your studio.

Extra Photography Insurance Options for Add Protection

With the basics covered, you might want to look at a few extra layers of protection that are particularly helpful in the photography industry.

Workers’ Compensation Insurance

If you have even one employee working for your business, you’ll need to know if your state requires you to carry workers’ compensation insurance. Most states require this, and it helps cover the cost of injury or illness for employees, including medical care, lost wages, and more.

It also covers the legal fees if you’re sued by an employee or their family for a work related issue.

Commercial Auto Insurance

Chances are you or your employees occasionally need to transport equipment to or from a photo shoot or consult with a potential new client. Did you know your personal vehicle probably isn’t covered if you’re using it for work purposes?

If you own a vehicle that you use (even occasionally) for the purposes of running your photography business, you’ll need to make sure you’ve got a business auto policy to cover you in the event of an accident.

If all this seems confusing, you can easily get some quick answers by using our 60-second photography business insurance wizard to see which insurance lines you need most, and which you can probably worry about some other time.

Insurance for photographers