When you work as a contractor, regardless of the industry you work in, it is important that you have the proper insurance to protect your business. Not quite the same as a commercial insurance policy, contractors insurance policies must have all of those coverage options that protect your unique business operation as much as possible. Every contractors insurance policy provider is not the same; there can be drastic differences in pricing and coverage limitations.
Getting quotes from multiple providers is the easiest way to track down the company that offers the best policy for your contracting business at the most affordable price. There are a few things you'll need to obtain quotes.
You will need details about the business operation.
The first and foremost thing you can expect to have to provide when you are obtaining contractors insurance quotes from different providers is information about what type of business it is that you operate. Insurance needs vary depending on what type of services you provide. For example, a contractor who primarily works on electrical systems may need different coverage levels than a contractor who primarily does plumbing work only. You should know a general list of typical jobs you will be performing, the type of structure or property where your services will be performed, and the locations in your state where you will be working.
You will need details regarding your industry experience.
When you call in for an insurance quote as a contractor, you may be a little surprised if you are asked how long you have been a contractor. There is actually a logical explanation behind this question. Insurers have to determine the risk of covering your business operation, and if you have not been a licensed contractor for very long, there is more of a chance that you could cause damage or run into a liability issue due to a mistake. Most insurers will just ask that you give a general idea of how long you have been in the business.
You will need information about prior insurance policies.
If you have never had contractors insurance, you won't have anything to offer. But if you have had another insurance carrier previously, the new company will likely want to know who you had a policy through and what your coverage limitations were. This information is useful when providing a quote because it helps the insurer see what kind of coverage you will likely need for your business.
Contact an insurance company to learn more about contractors insurance.