Common Mistakes in Insurance for Contractors

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Common Mistakes in Insurance for Contractors
When it comes to choosing the right insurance as a contractor, you’re probably faced with a number of options and a number of questions. How do you know which one is right for you? How do you know what exactly you need? There are a number of factors that you have to consider and it can be confusing.

General liability insurance for contractors, along with other key coverage, protects you and your contracting or construction business if something unexpected happens during a project, and any contractor knows that something not planned usually does happen.

Assessing Your Needs

The construction industry is one of the riskiest to be in and things can go awry with every turn of the screw. It helps to have the right kind of insurance in store so that you don’t have to suffer financial drawbacks that can throw a project, or an entire business, off track.

If someone is injured on your site and it leads to serious medical concerns, your insurance would cover the medical expenses needed. Or if property was damaged during a project, insurance will also kick in at that point and cover the cost of repair, replacement, and other related expenses.

When it comes to picking the right insurance it pays to be picky and diligent. This will all pay off in the long run. However, if you’re not diligent in your choosing of an insurance plan it can backfire. Here are some common mistakes some contractors make when picking insurance.

Assuming All Companies Are the Same

When a company offers general liability insurance it doesn’t necessarily mean that they can offer you all you’re looking for in services. Some contractors have different needs than others, so insurance needs to reflect that. The coverage offered may not be as extensive as you need it to be and you could be left out to dry when something goes wrong at a site. Make sure to go over offered services and policies at an insurance provider and pinpoint your needs down to the point.

Not Doing Research

The beautiful thing about the Internet is that it holds all the information you would need, for the most part, when it comes to reviewing insurance options. There is an abundance of information available at your fingertips and you can even look up the information you need on your phone, on the go. Online reviews are one way to get a solid idea of what you may be getting into when considering a new insurance provider. Hearing the praises and grumbles from people who have had experience with the provider in question will give you a firsthand outlook and could help you lock a provider down or avoid a huge mistake.

Choosing Cheaper Insurance

Cheaper is not always better as in some cases you get what you pay for. When it comes to insurance, a very serious consideration, you should never make decisions based off the price. A policy that’s cheaper may not have the exact needs you have for your company or projects. Or if a cheaper policy does cover what you need, there may still be limitations. Plus, lower prices may indicate that a company is unstable and untrustworthy, offering its services for lower only because clients continue to drop left and right.

About Shields Insurance Agency

Shields Insurance Agency is an independent insurance agency located in Birmingham, Alabama that provides insurance coverage to local businesses and families throughout the southeastern United States. As an independent agency, we will shop your coverage with numerous top-rated insurers, virtually guaranteeing you get the most competitive rates available with broad coverage terms. For more information on our products and services, contact us today at (205) – 783-5893 to speak with one of our professionals.

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