How to Reduce Contractor Insurance Premiums

Roofing contractors and other construction-related companies pay some of the highest premiums within the insurance industry. Because of the physical requirements and risk threshold these professionals encounter on a daily basis, these policies are regarded as "high risk." While a roofing contractor may be more likely to file a claim than a more docile professional, many contractors spend too much on policies. Moreover, these policies may not even be the best for their type of work.

Speaking to a professional insurance agent, such as those at Farmerbrown.com, ensures the best rate possible and the most accurate roofers insurance information. This is essential to not only save money, but also to ensure coverage levels are appropriate. By understanding essential levels of liability, roofing contractors may take immediate control over monthly premiums. Gain basic insights into the necessary levels of coverage by answering four primary questions:

What type of work does the contractor perform? In the realm of contractor insurance, the type of work performed by the insured is the largest influence on monthly premiums. For example, a general contractor would likely pay more in premiums than a landscape architect. When reviewing policies, ensure the levels of protection are equal to the type of work performed.

Where does this work take place? Even in buildings that feature insurance coverage, such as apartment building insurance, contractors must feature a personal insurance policy. Along with the actual buildings the contractor works on, the geographic location of the work site determines monthly premiums. The required limits of liability for contractors is determined on a local, countywide, basis. Therefore, a contractor may require certain levels of coverage for one project while another project requires less coverage.

What is the claims history for the contractor? The claims history of a roofing contractor plays a substantial role in monthly premiums. For example, a contractor with one claim within the past five years would pay substantially less in monthly premiums than one who's had three claims within the same reporting period.

What are the suspected limits of liability? The bottom line affecting the final premium cost is the total levels of liability covered within the policy. External influences, such as local liability regulations and the type of work performed, determine the basic levels of liability. However, the minimum levels of protection are typically not adequate for complex projects. This being noted, excessively high limits of liability and see Farmerbrown.com for more levels of protection may provide a plethora of coverage, but if the contractor features a relatively low risk of having a claim filed against him, policy costs may not outweigh its benefits.