When it comes to your contractor insurance program, it can feel a lot like going to the dentist. You know it’s essential, and in this case, good for your business’s health, but dread your program review every year.
If you’re feeling this way, it may be time to start interviewing other brokers. As a business owner, you should feel that your broker or advisor brings value to your business.
Are they just coming to your business every year, dropping off the same renewal with a 3-5% increase? Or are they taking an interest in your contractor business, understanding your exposure, and recommending different options to reduce cost, minimize risk, and enhance coverage?
The largest misconception in the insurance industry is that every insurer or broker is the same and the lowest premium wins. This assumption couldn’t be farther from the truth. Obviously, you are shopping for value in your insurance program. But have you shopped for value in your broker? This article explores the five signs it’s time for a change. Let’s jump in.
A telltale sign you’re not receiving value from your current broker handling your contractor insurance program is that they are not acting as a partner in your business. Your contractor business is not static. Your projects and what needs to be protected change, and so should your insurance policy. Yet, many brokers skip over an annual review only for you to receive a renewal without a conversation.
If your broker is not meeting with you, at a minimum annually, to review any upcoming projects, discuss estimated insurance costs, and potential solutions for any upcoming issues, it’s a strong sign you’re not getting all the value you could be from your contractor insurance program.
If you’ve ever been left wondering, “Am I covered for…” without a clear answer, or you ask your broker, and they cannot explain what’s covered, you may need a change. Understanding your coverage is fundamental to risk management and protecting your business. Without this knowledge, you’re unable to manage risks effectively, making assumptions that you’re protected when, in reality, you’re leaving your business vulnerable to financial losses.
You understand your contractor business, and so, expect your insurance broker to understand your insurance. If you do not feel confident knowing what is and, more importantly, what isn’t covered on your contractor insurance policy, it is time to look for a new broker.
The insurance industry is no different from other industries. What was available last year is different this year. A sign you’re not getting full value from your contractor insurance program is your broker is not keeping you up to date on the latest information regarding your policy.
Your broker should be having a conversation proactively when they foresee changes in rates due to market conditions, new products that could be of benefit are offered, there are changes to the coverage provided (for better or worse), or there are changes in the markets that provide contractor insurance. You should feel confident you have the latest information necessary to make an informed decision about your insurance policy, and that information comes from your broker.
You purchase insurance to minimize your exposure to risks that could financially impact your business. One of the greatest areas of value an insurance broker brings is their risk management advice and recommendations. If your current broker isn’t meeting to understand any changes in your business and providing their recommendations to mitigate any exposure, you have a strong sign you’re not getting value from your contractor insurance program.
Are you receiving only one option for your project or renewal? If so, you’re not receiving all you could be from your construction insurance program. Your broker should be presenting multiple quotes from various insurance companies so you can contrast and compare pricing and coverage. With only one option, how do you know if you’re getting the best value and coverage? This is a clear sign you’re due for a change in who is looking after your insurance.
Like your business, all brokers are unique. Any advantage over the competition is paramount, and your broker can be your ace in a hole you never knew you had. If you feel like your current broker isn’t adding the value they should be, it’s time for a change.
The team at Buildsure understands contractor insurance. They’re not just a broker but a partner in helping your business thrive. They will meet to understand your business and create a tailor-made contractor insurance program that fits your unique needs. They’re with you every step of the way, ready to answer your questions to ensure you feel confident in your decisions for your business.