By Marieli Cestari with Cestari Insurance Agency

What construction companies should think about when getting an insurance policy:

  • It’s key for contractor to disclose all the business activities, their rates will be base on that but most important any activity that is not disclosure could potentially be denied if a claim arise doing those activities.
  • Contractor policies are based on the activities, the amount of employees and cost of labor (subcontracting and/or payroll).  Carrier do audits on this policy after the policy year expired and can collect any additional premium was due if the cost of employee was much higher than want it was disclosed.  Therefore it’s important to have a close communication with your agent if your business is experiencing growth and be prepare for the collection of the additional premiums.  This is what it gets most contractors when the face high invoices at the end of the policy year forcing their policies to lapse.
  • Consider getting coverage for Faulty Work, depending on the area of construction you can get this policies for a very inexpensive cost that can save you lot of money if you face a fault work claim.  The coverage only covers the materials if you need to reinstall due to a bad installation.
  • Coverage for your tools and equipment is another coverage that many contractors forget and it’s the most losses they face due to the high risk of theft of tools on their vehicles or side jobs.