If you are a construction business owner, odds are high that you spend too much money on your general contractors insurance. While it is true that construction carries a diverse range of risks such as worker injury and theft, there are several ways for business owners to save on their general contractors insurance.
As the Small Business Administration explains, you may be responsible for general liability insurance in addition to property and vehicle insurance. Depending on the state you are in, the law might also mandate that you have other types of insurance such as unemployment, disability and workers compensation. One way that some construction businesses save on general contractors insurance is to bundle policies. In exchange for the increased business, insurers offer a discount.
Take Preventative Measures to Stop Theft
Theft is a huge pain not just because of vanished materials and equipment. There is also the time spent on replacing materials and the costs of downtime and project overruns. Your insurance premiums may also increase. Because many job sites follow poor theft-preventative measures, you might qualify for a better insurance policy if you prove that you take precautionary measures. And even if you do not get a rate reduction, your business drastically cuts its chances of becoming a victim of theft. Here is what you can do.
- Use different keys for different pieces of equipment.
- Lock down/secure job sites at nights and on weekends. For example, invest in nighttime lighting, cameras and sturdy fencing with minimal access.
- Secure construction cabs.
- Maintain exemplary records that include product identification numbers.
- Log all items entering and leaving the site.
- Perform stringent background checks on employees.
Enhance Safety Procedures
Improving safety procedures is another excellent way to save on general contractors insurance. For example, you could have scaffolding, head protection, fall protection and electrical protection for workers and passersby that go beyond required minimums. Furthermore, make safety a top-down concern in the culture of your business, and extend it to subcontractors as well.
Implement Risk Management
If you do not already have risk management procedures, now is the time to implement them. Such procedures help you identify, anticipate, mitigate and address potential risks. You will be better informed when you make decisions and have improved, data-driven justifications to bring to your insurance company. You will save money in general too; for best results, involve the entire business in risk management, and account for it on levels including design, contracts and finance.