Insurance Rates Rising Each Year for Contractors

Are your insurance rates skyrocketing each year and you are wondering what you can do to get them down?  We are hearing from contractors across the country who are facing insurance sticker shock as they open up their latest statements.  Since you need insurance to run a proper business, especially in the home services trades, what can you do?  Here are a few quick suggestions:

• Do Some Shopping – The easiest think you can do is to get on the phone and start calling around.  Get some competitive quotes from other insurers for the policy you need to protect your company.  If you find one that saves you money for the same level of coverage, don’t be afraid to make the switch.
• Boost Your Share – The deductible is essentially the portion of the risk that you’re willing to take off the backs of the insurance company.  When you agree to take on more of the risk, they reward you with lower rates, so see if raising your deductible is a strategy that makes sense in your company.
• Classify Correctly – The rates for a contracting company will be determined by the classifications the insurer puts you in based on the types of work that you do.  Talk to your insurance company and make sure they have you classified in the proper section.  For example, if you used to do a lot of work that required ladders and heights but you no longer do that work, you’re likely still classified there and paying more that you need to.  Make sure you’re insured for the type of work that you actually perform currently.

Finding a lower rate for your insurance is possible, but it will likely require some leg work on your part.  However, every dollar that you save in insurance costs is another dollar that will wind up on your bottom line, so finding the best deal on the proper coverage is a valuable exercise for every business owner.