Contractor Tips

We insure contractor's and love doing it, but we have found over the years that contractors think they know what they have and don't have to insure. For instance, trailers do you insure them or not? Well, Jim said that there is coverage as long as my truck is pulling the trailer. Well, from a coverage perspective that's sort of true, you have liability protection from the car pulling the trailer should it hit another vehicle, that does NOT mean you have physical damage coverage for your trailer. Makes that $12,000 trailer you haven't insured pretty important to insure. Or let's talk tools. Some policies give you pinch or absolutely none, some you have to add by endorsement tools coverage. And all companies insure tools on an ACV actual cash value basis or depreciated value not replacement cost. If and that is if, it is available by your carrier and some just don't allow replacement cost on tools. You have to add replacement cost tools to the tool's coverage, or you will only be paid depreciated actual cash value of the used tool. And if you are storing trailers off of your location at night, your coverage for items in that trailer are greatly limited. Leaving trailers on a job site in Indiana is nearly assuring theft. Or my favorite, not listing drivers on the auto policy that are using commercial vehicles. You have to list driver employees just like you have to with drivers in the home. The simple fact is the insurance company has the right to review the driving record of anyone driving a vehicle they insure. And if you don't report to your agent, you run the risk of non-renewal, or if habitual possible coverage loss. Most insurance companies today want theft prevention tools like GPS and secure security locks on all trailers. Theft has exploded in this industry in the last five years, and it only got worse during the pandemic. It is the highest insurance risk when you are a contractor. Between cars on the road and multiple driver exposures, theft exposures from tools, equipment and materials, and lawsuits, getting these coverage's right means saving you thousands of out-of-pocket dollars when a claim occurs because it will occur. I fyou are a start-up get a hold of a professional agent to get you set up and review your policy with your agent year after year, so you grow you get the coverage you need as you need it. Don't just listen to other buddies and assume, ask, saving $50 a year is not worth a $10,000 plus a year loss just because you wanted to save when you were really just forcing a future hemorrhage. That is why professional commercial agents are there. For your absolute best interest. We ask our clients did you add drivers, cars, new equipment or tools every renewal that way if you missed it, we catch it. Work with your agent, be a team, be honest, that is the only way you can be rest assured you have what you need from year to year. Heather