Subcontractor's Insurance

4 Insurance Tips for Subcontractors

Carrying insurance is an expensive but important part of your business operations. Many wait until a claim is filed to see how useful a policy is, but with these tips, you can make your insurance work for you and get the most out of your policy.

1. Extend Your General Liability Coverage

A general liability policy won’t address all the potential risks you may face. Consider adding endorsements that deal with faulty workmanship claims or additional coverage for subcontractors.

2. File Claims Correctly

If you have multiple policies that provide overlapping covering, filing a claim on the wrong one could cost more money in the long-run. Consult with your insurance provider before making a claim to avoid having premium hikes in the future.

3. Pay Attention to Exclusions

There is a lot of information in your policy, and it may be difficult for you to grasp what is and isn’t covered. You need to know of any exclusions and gaps in order to protect your out-of-pocket costs. You may need an umbrella or gap policy.

4. Protect Against Common Claims

More than 20% of claims filed on contractors insurance include theft or burglary. Use commercial property insurance or builder’s risk to protect from the financial loss that can occur.

Combining policies can be a more cost-efficient way to go, while still giving maximum protection against risks. Check with your insurance provider about bundling your coverage.

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