Insurance: A Guide for the Masses

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Important Things To Think About When Purchasing Contractor Insurance

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If you are new to the construction industry or if you are hoping to purchase a newer and better insurance policy for your existing construction company, you might be wondering what you should be looking for. These are some of the important things that you will probably want to think about when purchasing contractor insurance; then, you can make sure that you have purchased a policy that is adequate for your construction company. 

Am I Buying from a Reputable Insurance Company?

The number one thing that you should pay attention to when purchasing contractor insurance is whether or not you are purchasing your policy from a reputable insurance company. This can give you peace of mind and can make your customers feel more confident, too. Plus, if you do need to file a claim, you'll probably have more luck if your insurer is a reputable company that has a strong financial backing and a good track record for paying claims.

How Soon Will Coverage Begin?

Next, you should determine how fast you can secure your insurance policy and secure your coverage. If you are hoping to get to work right away, then you will probably want to choose an insurance policy that will be effective immediately. After all, you probably will not want to begin work without having the appropriate coverage in place, and you probably don't want your construction job to be delayed, either.

How Much Coverage Will I Have?

When purchasing contractor insurance, you should look into the different coverage amounts that you can purchase. Buying more coverage will be more expensive, but it will help you ensure that your construction business has the amount of coverage that it needs. Consider talking to an insurance agent for advice about how much coverage your construction business might need; then, they can let you know what other businesses that are similar to yours might usually purchase.

What Will Be Covered By My Policy?

Not only should you pay attention to the amount of coverage that you have with your contractor insurance, but you should also pay attention to what will and will not be covered by your policy. You will probably want to ensure that you have a contractor insurance policy that will cover things like employee injuries, damage to customers' property and more. Different types of contractor insurance offer different types of coverage, so make sure that you compare policies and choose the one that offers the types of coverage that you need.