10 Questions To Ask Before Purchasing General Liability Insurance For Your Contracting or Construction Business

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1 10 Questions To Ask Before Purchasing General Liability Insurance For Your Contracting or Construction Business Hi there! Thank you for downloading my cheat sheet 10 Questions To Ask Before Purchasing General Liability Insurance For Your Contracting or Construction Business. My name is Freddie Servin and I provide insurance services for contractors and construction businesses. I m also a husband, father of two, and I love writing, reading, and a nice walk on the beach with my family here in San Diego, California. I wrote this quick cheat sheet just for you, because when you start the process of shopping for Contractor General Liability Insurance, you ll find there are limitless coverage options available to you. But with all the different policies, coverage amounts, deductibles, and premiums, you may find it a daunting task choosing the right policy for your business. To help you find a little clarity in this not so clear cut world of Contractor General Liability Insurance, and before you invest time, energy and money into purchasing the right policy take a few minutes to consider these questions: Ready? Let get started.

2 1. Do I need general liability insurance for my contracting / construction business? All contracting or construction businesses should have general liability insurance, regardless of how big or small. No matter how well you run your business, there is no safeguarding against the unpredictable accidents or tragedies that may arise. For example, if one of your employees were injured on the job, would your business have the means to cover medical expenses out of pocket? What would your business do if a fire destroyed your supplies and equipment? In the event of the unforeseen, business liability insurance also know as general liability offers the needed financial security to keep your business afloat. 2. Have I examined my insurance needs and risk? Before you shop for general liability insurance, you'll need to know what coverage you're looking for and what risks your business faces. For example, you may want to begin by asking yourself what risks do you or your employees face at work? What equipment needs to be protected in the event of an accident? What coverage does your contracts typically require? Though you can do everything in your power to properly train your employees in safety procedures and to drive safely while transporting equipment, the simple truth is that accidents happen all the time, and the best thing you can do to protect your business is to prepare it for the worst case scenario. 3. How do I find an insurance professional that seems trustworthy? When you're in the market for contractor general liability insurance and you take your search online, you'll find there's no shortage of options for you to choose from. The challenge lies in finding the time to sift through them all and choose someone you feel confident with handling your business insurance needs. An insurance professional can make your life easier by doing the work of hunting down multiple quotes and sending them to you to compare. Also, an insurance professional can

3 save you time, money and energy in finding a competitive deal as they maintain relationships with top-rated insurance providers. 4. Should I use the service of a contracting or construction business insurance specialist? Coverages and premiums vary from company to company, so your best course of action is to work with a licensed professional who specializes at insurance services for specific types of business. I joined with Hunter Insurance Service because they have a team of specialist who handle contracting and construction insurance on a dayto-day basis and are in touch with a marketplace that is changing dayto-day. This allows me to offer a broad range of coverages for both small and large construction companies. So please reach out to me and I would be happy to speak to you about your insurance needs. 5. What do I need to get a general liability insurance quote? I ll ask you some questions about your business, including name, address, previous claims, business activities, payroll amounts and the number of years you have been in business. The business liability insurance quote process is very simple, and only takes a few minutes of your time. 6. What payment options exist for my general liability policy? Several. I offer a range of payment options, including debit and credit cards (Visa, MasterCard and American Express). You may also choose to pay the full amount in one lump sum each year or to pay monthly. Also just ask me about special financing options that fit your situation. 7. Shouldn t I just go with cheapest insurance policy for my business?

4 Price isn t everything, remember not all business liability insurance policies are considered equal. There can be big differences in what the policies cover, from one policy to the next. If you are shopping for insurance just based on its cost, you are making a big mistake! A comprehensive insurance policy may cost a little extra, but in the event of a covered claim, your policy may offer more coverage than a less expensive option. The lesson here is to base your purchasing decision on the amount of coverage and the quality of that coverage rather than price alone. 8. What is the difference between as per occurrence limit and an aggregate limit? Insurance is filled with complex terms and big words, but I will try to keep things simple. Most small business general liability policies will have two limits. The per occurrence limit is the maximum the carrier will pay for claims arising from a single occurrence. The aggregate limit is the maximum amount the provider will pay in total during the policy term (usually a policy covers a year). Many small businesses select a per occurrence limit of $1 million and an aggregate limit of $2 million. To find out what limit you need, please speak to me a licensed insurance professional and I ll help you get what you need and understand exactly what coverage you re getting. 9. Should I consider deductible options? It's worth noting that most business insurance policies come with a deductible (i.e. the amount you will contribute in the event of a covered claim). While a higher deductible may seem more appealing because of its smaller premiums, you may regret this decision in the event of a covered claim when you will be responsible for paying more out of pocket. On the other hand, a lower deductible usually means you pay more for premiums, but your insurance provider may provide a higher payout for your insured claim. While weighing your options, consider how frequently you might actually incur a covered loss, and how much of that loss you can afford to carry yourself. As a rule, do not agree to

5 pay for a deductible that could put your finances at risk. After all, the purpose of business insurance is to minimize your financial strain in the event of a catastrophe not to add to it! 10. What happens if my subcontractor does not carry general liability insurance? The problem arises when your general liability company comes and audits your books at the end of the year. If you do not have a Certificate of Insurance for the subcontractor your general liability company will add it to your payroll and you will end up paying the general liability for the subcontractor who did not buy it. I can hear you now It s a friend trying to help me out, that s not fair. When you hire a subcontractor to do work for you, they must carry general liability insurance and they must have the same limits of liability as you do. For example, if you have a General Liability insurance policy with a $1,000,000 limit the subcontractor that you hired must also have the same. Here s the thing: This search for your Contractor General Liability Insurance does not need to be complicated. There s no need for you to learn overnight a lot of crazy big words or super confusing terms to make sure you get the right policy. It can be simple AND easy. My job is to show you how to get the best policy at the right price, and give you the peace of mind you need to run your thriving business. Once you have the right plan and the knowledge of how your policy works, you can take your business as fast and as far as you want! If you would like to join me on the journey of being your personal business insurance agent, look for a personal phone call or from

6 me very soon! Freddie Servin - Insurance Producer Hunter Insurance Services, Inc. Direct Phone - (619) freddie@hunteronline.com