CONTRACTORS INSURANCE TIPS
Things You Need to Know About Roofing Insurance
According to Zach Finn, professor and director of the Davey Risk Management and Insurance Program at Butler University, “Insurance is meant to cover exposures that will ruin your life not just your year.” This holds especially true in regards to roofing insurance. Your contractors insurance, which is the umbrella for your general liability and workers compensation, protects your business from financial ruin. The combined coverage of general liability and workers compensation safeguard your company in the face of customer claims and workers injuries.
Because of the strategic role roofing insurance plays in your fiscal survival, you need to take certain steps when you select your contractors insurance coverage. These steps involve getting coverage before disaster strikes, choosing the correct amount of liability coverage, being prepared for changes in your insurance needs, and staying informed of new developments in your insurance plan.
Roofing Insurance Coverage
The best time to get roofing insurance is before you need it not after you’ve had a disqualifying event. Texas doesn’t require roofers to purchase general liability and workers compensation, and other unscrupulous roofers disobey state laws by not having roofing insurance. However, reputable roofing companies need it to compete for bids, attract good workers, have satisfied customers and gain repeat business and referrals.
Terri Vaughan, interim dean of Drake University’s College of Business and Public Administration says, “Most consumers have deductibles and liability limits that are far too low.” Vaughan suggests that consumers raise their deductibles and use the money saved to increase their liability coverage. If consumers are short on cash, Vaughan advises these insurance buyers to start an emergency fund to cover the cost of the deductible.
When you purchase roofing insurance, you are protecting your greatest asset-your business. If the company has grown, you need your general liability and workers compensation increased. If your enterprise has shifted focus from residential to commercial structures, you need to align your general liability coverage to reflect the higher value of commercial properties. Your best resource in helping you decide how much coverage you need is your roofing insurance agent.
Each year your roofing insurance can change, and that change can include exclusions. Exclusions are circumstances that are not covered by your liability insurance. Most policies contain exclusions. What you need to find out from your roofing insurance agent is how those exclusions make your company financially vulnerable. You also need to learn what kinds of coverage you can get to offset the exclusions. Furthermore, you should have your agent list what coverage have not been included in your policy that may be essential to you.
When you renew your contractors insurance each year, ask your agent if there have been any new developments. Sometimes, insurance companies have new options that may be more cost effective for your company. Your agent might also tell you about discounts that you are eligible for and that could save you money.
Nothing protects your bottom line more than your than your workers compensation and general liability insurances. Take out the time when you renew your contractors insurance to get all the facts to make a wise decision.