For contractors, one of the most important things they can do to protect their business is to get insurance. One of the most common insurance policies that most contractors get is general liability insurance.
In order to get the best of what general liability insurance has to offer, here are some mistakes contractors need to avoid.
- Not Understanding The Risks and Consequences Of Loss
Many business-owners and contractors often regard insurance as simply an additional and unnecessary cost since they believe claims will never be made on them. And when disaster strikes, they’d be caught off-guard and end up with more expenses. Therefore, it’s important to get insurance and understand your policy very well.
- Getting The Wrong Policy
This is another huge mistake that contractors should definitely avoid. There are different types of policies in the market and each policy is designed to meet the different needs of the user. When choosing a coverage plan, it’s important to get comprehensive coverage at a reasonable price.
- Not Checking The Exclusions
The exclusions on an insurance policy are the events or perils that are not covered under the current policy. There are several small work-related issues that contractors need to deal with and oftentimes, these issues are left uninsured. Thus, it’s important to check the policy exclusions to determine which events aren’t covered and what can be done about it.
- Not Insuring Your Sub-Contractors
Most contractors work with sub-contractors in order to get work done faster and more efficiently. If an accident occurs with the subcontractor, you’re responsible for them. This is why getting a general liability insurance that offers coverage for contractors is a good idea.
- Changing Insurance Providers All The Time
Many insurance providers offer discounts for their loyal customers and if a contractor jumps from one insurance to another, they lose that chance. Also, it doesn’t give them enough time to review or evaluate the effectiveness of their coverage.
To secure your business with contractors insurance, please fill out the form below.
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320 East Lake Avenue, PO Box 1170
Watsonville, CA 95077-1170
Toll Free: 1-800-320-3666
This article is courtesy of insuranceunit.com dated Jan 12, 2012