Posted on May 17, 2014
Few other industries have experienced the effects of today?s tough economy as the construction industry. With tight constraints on budgets and expenses, today?s construction business owner must look for ways to streamline operations and cut costs in order to stay in business and hopefully make a profit. Business insurance is one area where construction companies can look to reduce costs and find potential savings.
Comparison ShopThe first step business owners should take is to speak with a professional insurance broker to look at comparison quotes from different companies. Be sure to evaluate the proposals for limits and coverage so that no needed features are lost when compared to existing policies. While price should not be the only factor considered, taking a look at what other companies have to offer can be helpful in knowing what coverage is available and at what pricing.
Evaluate Existing Policies for ChangesOther potential areas of savings for construction commercial insurance is evaluating existing policies to determine if each coverage feature is needed. For instance, if business has slowed and many employees have been dropped from payroll, these changes could potentially impact insurance rates. Perhaps changes have been made to the type of construction work so that the business is rated in a different category at another rate entirely. Any type of business changes should be evaluated to determine if lower insurance rates are available.
Increase DeductiblesA quick way to realize insurance rate reductions is by increasing deductibles on existing commercial auto, property and liability insurances. Typically, higher deductibles mean lower premium rates. It is also always wise to set aside deductible amounts into business savings so that should a claim occur, the money is available to pay deductibles.
Combine CoverageBy combining commercial insurance coverage into a package or business owner?s policy (BOP), construction companies may also save on insurance premiums. The BOP packages two or more commercial coverages into one policy often at a lower rate than keeping separate policies. Most business owner policies combine general liability and commercial property together with the option of adding other protection by endorsement.
Cutting costs is essential to staying competitive for bidding and working on projects. While these four ideas for insurance premium savings are not all inclusive, they are definitely a good start to help construction companies realize additional savings they might not have been aware were available.