The Shocking Truths About Contractors Insurance Quotes

shocked_faceHow many of your current suppliers do you trust? Were any of them recommended from contractor friends? When we do business with a company, there is a level of trust, we have to develop trust with our customers too. Without trust (experience, previous work, etc), most would buy solely based off of the best price. You might pay some of your suppliers more based on a great level of trust and dependability. You know if you’re in a crunch you can depend that supplier to help you out.

Why would that trust and dependability differ from an insurance broker or insurance company? It doesn’t, yet price is a huge driving factor in determining where a contractor is going to go for a liability policy.

Here are a few truths to think about when you’re looking to get a contractors insurance quote (and yes, they might shock you):

-Most basic quotes do not show policy exclusions.

Why would they? If an insurance company is trying to sell you solely on price then it serves them best not to show you the exclusions until you are ready to sign up with them. More often than not, the pricing is so much better than anything else that a lot of contractors skip over and trust the insurance agent, or broker that is selling the policy. Even if there were exclusions, they would be for obvious, completely non-industry related, right? Wrong.

Here are 2 policy exclusions that are found on plumbers liability insurance policies:

  1. Water damage exclusion – If a plumber is doing work and a leak is caused and goes undetected, water damage may occur. With a water damage exclusion, the insurance company would not cover any of it.
  2. Heating device exclusion – Most plumbers use blow torches to reset pipe and pipe fittings. With a heating device exclusion, the insurance company will not cover any liability that was caused, or somewhat related to a blow torch.

You would think that insurance companies that write plumbers liability policies would not allow, or be allowed to include exclusions like these, but they are.

What Can I Do?

When shopping around for policies, ask what kind of policy exclusions are on the quote provided. If you have an insurance agent, ask the agent to go over your ISO form and over your policy exclusions. If you don’t have an agent, take a look at your policy and look under the exclusions clause in your current policy.

Non-standard carriers use finance companies for payment plans and charge interest

There are multiple parties involved on your current liability policy. They are;

  • Insurance broker: Your point of contact for your policy
  • Insurance agent: Your brokers point of contact for the insurance company
  • Insurance company: The company that is insuring you
  • Finance company: When you pay your deposit, and monthly premiums, you are paying a finance company. You are not paying the insurance company direct (most of the time). Insurance companies get paid in full for your premium by the finance company, then the finance company charges you interest. The finance company can cancel your policy based solely on non-payment.
  • There you have it. Don’t let price be the single driving force when it comes to getting general liability. Work with an insurance broker that you trust. The insurance broker does not work for the insurance company, they work for you.

    Ready to work someone you can trust? Fill out our quote request form or give us a call today at (888) 467-6612.