Month: June 2024

Kansas penalties for driving without car insurance

Posted on by AHI Group

If you didn’t already know, Kansas is one of 48 states that requires auto insurance by law. Driving without auto insurance–even home from the dealership after first buying a car–is illegal.

If you’re tempted to drive without car insurance to skip out on the premiums and save yourself a little cash, or simply for the added convenience, think twice. Here are the penalties in Kansas if you get caught driving without auto insurance.

What auto insurance is required in Kansas?

When you purchase car insurance in Kansas, you’re actually buying six individual coverages. These are each designed to protect you against a different kind of loss.

Here are the six different types:

Bodily Injury Liability

This coverage helps pay for medical bills incurred by someone who you injured in an automobile accident. It includes rehabilitation, funeral costs, and other expenses. It also includes settlements of lawsuits/your legal expenses.

Property Damage Liability

This coverage helps pay for repair costs done to property you damaged in an automobile accident. It also includes settlements of lawsuits/your legal expenses.

Personal Injury Protection (PIP)

Also called no-fault, PIP pays for any rehabilitation, medical expenses, funeral expenses, lost wages, or in-home assistance that is needed for you or any passengers of yours who were injured or killed in a car accident. This applies regardless of fault, and passengers who own their own car may need to go through their insurance first before another person’s policy.

Uninsured/Underinsured Motorist Protection

This coverage helps pay for you or your passengers’ medical, rehab, or funeral bills in the event of an accident involving an underinsured or uninsured driver. It also covers hit-and-runs and can cover you and your family if you’re hit while walking or riding a bike.

Collision Coverage

Optional collision insurance covers your vehicle for collision-related damages, including collisions with stationary objects, like curbs and street posts.

Comprehensive Coverage

Optional comprehensive insurance covers your vehicle against non-collision damages, so fire, theft, vandalism, and similar may all be covered under your policy.

What are the penalties for driving without car insurance in Kansas?

If you are caught driving without the minimum level of coverage–(so the above coverages minus collision and comprehensive)–you could be fined. In fact, driving without car insurance in Kansas may constitute as a misdemeanor. You could have your license and registration suspended, or you could even face imprisonment. Here are the penalties you could face for driving without car insurance in Kansas:

  • For a first offense, you could see a fine of $300-$1,000. You may face imprisonment of no more than six months, or a combination of a fine and imprisonment. Your license and registration will also be suspended until proof of insurance has been filed and you’ve paid the $100 fee to reinstate your documents.
  • For a second offense, you could see a fine of $800-$2,500. You may face imprisonment of 90 days mandatory. Your license and registration will also be suspended until proof of insurance has been filed and you’ve paid the $100 fee to reinstate your documents.
  • For a third offense or habitual violation, you could see a fine of $1,500-$2,500. You may face imprisonment of 90 days mandatory. Your license and registration will also be suspended for three years, and you’ll have to pay a $100 fee or $300 fee if your violation to reinstate your documents if your violation is within a year of the previous one.

What if I have insurance but don’t have it on me?

If you are caught unable to produce your proof of insurance, usually a physical document/i.e., pink slip, you may be considered guilty of an “administrative violation.” This is similar to a seat-belt ticket. You could have this citation dismissed if you can prove to a court of law within ten days that you have proof of valid insurance.

Driving without car insurance (not being insured at all) and being caught not having valid proof of insurance on your person when being pulled over are two different crimes. Just make sure you’re able to show proof of your insurance later on if you’re stuck in a sticky situation at first–otherwise you may be faced with similar consequences as you would if you were caught uninsured.

How does a lapse in insurance impact my future rates?

A lapse in insurance or “car insurance lapse” is any amount of time when your policy becomes inactive. A condition such as this can result in higher premiums and of course, fines if your policy is inactive during a period where you are still driving.

A lapse can also signal to a future insurer (or current insurer if you go back with who you were insured with previously) that you are a high-risk driver who is likelier to get into an accident than someone who remains consistently insured. Auto insurance companies will generally readjust your rates to reflect this higher-risk, meaning you could end up paying two or three times as much. Longer lapses may mean higher insurance rates.

And if you get into an accident during a lapse? You’ll be solely responsible for any of the damages, to yourself, your vehicle, and possibly even for the other driver/their injuries if you were at-fault. This can be massively expensive, with a price tag of tens of thousands of dollars. You’re probably better off paying your premiums, which overall would be much less than the larger cost of a loss. Plus, paying your premiums consistently won’t saddle you with a high-risk label for the next 3-6 years.

Need auto insurance, fast? Give us a call at AHI Group. We’d be happy to help you out and get you what you need, when you need it.

The Impact of Policy Lapses on Life Insurance Claims

Posted on by admin

Life insurance provides crucial financial protection for beneficiaries around Olathe, KS, but maintaining the policy is essential. A lapse in coverage has dire consequences for all parties involved.

What Is a Policy Lapse?

A policy lapse occurs when a life insurance policyholder doesn’t pay the monthly premiums within the grace period. This will result in the policy’s termination. The grace period typically lasts 30 to 31 days after the premium due date. Once the policy lapses, the insurer is no longer obligated to provide coverage, and beneficiaries may not receive the death benefit.

Consequences for Beneficiaries

Beneficiaries are generally not entitled to the death benefit if a policyholder dies after the policy has lapsed. This leads to unfortunate financial hardship for families who are now responsible for covering funeral costs and other expenses, from mortgage to household bills.

Reinstatement Options

Most life insurance policies offer a reinstatement period during which the policyholder can restore coverage by paying past-due premiums, often with interest, and providing proof of insurability. This period typically lasts three to five years after the lapse. Reinstating the policy can help regain coverage but may come with additional costs and requirements. It is crucial to act promptly to avoid a permanent loss of coverage.

Preventing Policy Lapses

Policyholders should set up automatic payments or reminders to ensure premiums are paid on time. Regularly reviewing the policy and updating payment methods can also help maintain continuous coverage. Keeping the communication line open with the insurance provider is critical to avoid policy lapses.

AHI Group Helps Guide You

AHI Group will help guide you and show you how life insurance can save you money in the long run. Our team covers the Olathe, KS region. Contact us today.

How to file an insurance claim after a storm loss

Posted on by AHI Group

Kansas’s 2024 tornado season is the most active on record. As many in the Midwest are still recovering from the start of the season, we turn to insurance to recoup our losses. In times like these, it’s good to know we’re covered for the unexpected!

If you’ve never filed an insurance claim before, you may be wondering just how to do so. Remember that you can always contact an AHI representative for support; otherwise, check out our step-by-step guide below for more information.

Am I covered for storms and tornado damage?

Most standard home insurance policies will cover storms and tornado damage, however, you likely won’t be able to acquire protection if you’re trying to buy insurance during an active storm watch. Our advice? Get insurance as soon as you close on a home so you won’t run into issues where severe storms are in the forecast and you’re without insurance.

May 2024 had the fourth-highest number of tornadoes on record in the Midwest, with 476 tornadoes recovered by the National Weather Service’s Storm Prediction Center. April and May combined had the second most tornadoes on record, just behind 2011 where an EF-5 tornado hit Joplin, causing $2.8 billion in damages and claiming over 150 lives.

As the issue worsens, it’s more important than ever to have protection. Contact an insurance agent at AHI Group to ensure you have the coverage you need against storms and tornadoes.

What happens if you’ve been impacted by severe weather?

With severe weather, you never know what could happen–your home could suffer a couple of broken windows, or it could be destroyed entirely. If you have home insurance, your coverage will help pay for the losses (minus your deductible), but you’d need to file a claim, which tends to come with its fair bit of work. Not to worry! We’re here to let you know what to do.

We never expect it’ll happen to us until it does. Part of being a good homeowner is being prepared with the right insurance, plus equipping yourself with the knowledge of what to do after the fact to recoup your losses. Here is our step-by-step process for filing a claim for storm losses:

Step 1: Get in touch with your insurance provider

Once you’re aware of storm damage, it’s time to get in touch with your insurance provider. You can also reach out to your agent for guidance. Most insurance providers have a 24/7 claims hotline you can contact, but keep in mind that during episodes of severe weather, plenty of homes will be calling in, so they’ll usually answer on a first-come, first-served basis.

After you’ve reached out to your provider they will schedule an adjuster to come out to the scene to investigate and inspect the scale of damages done. During this time, they will determine if you have an eligible claim. You may also have a claims representative assigned to your case, who you can contact at any point for information on your claim. This isn’t always the case with these widespread incidents.

Step 2: Let your provider know of any emergency repairs that are needed

If your home requires repairs immediately that may render your property unlivable or are considered an “emergency,” you may need to let your insurance provider know. They will be able to get you in touch with a company that can complete these repairs right away to prevent the risk of further damage.

If your home cannot be re-entered and you are forced to find temporary accommodations elsewhere, keep all receipts on-hand for any additional, much-needed living expenses. This includes takeout, hotel bills, receipts for new clothes, childcare, etc. You may be able to get these reimbursed later through a portion of your home insurance known as additional living expenses.

Step 3: Discuss damages with your adjuster

Once the process of “review” has been complete and the company’s adjuster has checked out the property and done a thorough assessment, they’ll go over the damages and give you an estimate for what it will take to repair your home. They may also provide this assessment to whoever is being hired to do the repairs to your home (usually a preferred contractor).

Step 4: Get a contractor locked-in to do the repairs

Many insurance companies have preferred contractors that they will want to do the repairs to your home. This is usually because these companies are trusted or have completed work for the insurer before. You are allowed to vouch for a specific contractor if you want. If this is the route you wish to take, ensure that the contractor is licensed and has the necessary policies in place to perform your repairs.

Note that an insurance company’s preferred contractor may also have a warranty on work through both the contractor and the insurance company, which can give you a little more peace-of-mind.

Step 5: Confirm, sign, and begin repairs

Once you receive your estimate, make sure to get it reviewed and confirmed by a professional. This is usually whoever was hired on to do the repairs or another third-party. You should also ensure any changes to your home are considered and agreed in your contract. Once everything looks good, you can sign and repairs can begin.

You have between 12 and 24 months to file a claim after a storm loss, but it’s advised you get in as soon as possible. If it’s a larger storm or event, chances are that there’s a huge backlog of homeowners awaiting their own claims, too. The sooner you’re in, the sooner your repairs get done. Note you’ll be responsible for your deductible as well, which you’ll need to pay towards the repairs before your insurance provider pays the remaining amount!

Questions? Give us a call here at AHI Group. We’d be happy to go over a recent claim or discuss your insurance coverage in the midst of this severe storm season.

What are some of the most common insurance claims that contractors make?

Posted on by AHI Group

Did you know that 1 in 5 deaths among workers in the U.S. occur in the construction industry? This is just one of many reasons for construction businesses to have the necessary insurance to protect themselves against workplace injuries, among other hazards.

Unfortunately, the construction business is risky–but at the same time, it’s integral to the U.S. economy. From on-the-job injuries to severe weather, vandalism and break-ins, traffic collisions, and more, there are so many possible ways to experience losses as a contractor. With the right insurance, you can be protected against almost anything that can happen. It helps to know what can happen. Here are some of the most common insurance claims that contractors make.

Are contractors required to carry insurance?

Before we get into the types of claims that contractors may face, let’s take a glance at what insurance is required of contractors.

Contractors and subcontractors are sometimes required to carry contractor insurance in the U.S. Specific contractors that may specialize in certain fields, like plumbers or electricians, may benefit from having special artisan contractor insurance. That being said, insurance requirements can vary depending on the state, line of business, etc. Usually, it’s a general rule of thumb that any business with employees acquires workers’ compensation insurance.

General liability and errors and omissions insurance are also highly recommended. The former protects your business against claims of bodily injury and property damage and the latter protects your business against claims of negligence, misinformation, error, etc. Both are beneficial layers of protection to support your business in the face of costly lawsuits.

What are the five most common contractor insurance claims?

Construction can be high-risk, which means it’s ripe with opportunities for damage and losses. Here are five of the most common contractor insurance claims:

Personal injuries and property damages

Did you know that 10% of all liability claims arise from slips and falls? Accidents still happen, no matter the precautions we take to avoid them. With construction, there can be a lot of hazards–falling debris, cracks in the ground, machinery and equipment left out, etc., that passerby could trip or injure themselves on. If a non-employee injures themselves or their property is damaged by your construction business’s operations, they could sue. That lawsuit could cost your business.

For example, say your construction business was performing renovations when a heavy piece of equipment gets dropped accidentally. It significantly damages a homeowner’s living room floor and nearby wall, cracking their hardwood floor and leaving a large hole in the wall. The damages are estimated at $8,500. The total claim amount for the repairs, plus any additional expenses, amounts out to $9,500–which would be covered by a general liability insurance policy.

Workers’ compensation injury

The construction industry is huge for workplace injuries, ranging from minor to severe. It could be due to a fall, dropping heavy equipment, misuse of machinery, etc. If a workplace mishap sends a worker to the doctor or, worse, the hospital, they’ll be out of commission for some time plus may rack up some serious medical bills. Workers’ compensation insurance can be used in this instance to cover both lost wages, medical bills, rehabilitation or ongoing care, and in a worst case scenario, funeral expenses and death benefits for your employee’s surviving family.

Damage to ongoing builds

Construction involves a lot of works-in-progress, which tend to be extremely vulnerable to damages during the period where they are being worked on. There’s a lot to lose on an ongoing project–materials, supplies, equipment, tools, and all the work your company has invested time and money in. One of the most common contractor insurance claims comes for projects in progress, with wildfires being among the most common causes of damage.

Stolen equipment

A probably unsurprising cause of loss for construction companies and contractors is equipment stolen off of worksites. Your contracting equipment is crucial to helping your business run. It’s also expensive–and appealing to thieves. If your tools go missing from a worksite or warehouse, or are lifted out of your company trucks, it might be time to file a tools and equipment insurance claim.

Traffic accidents

Contractors and construction companies may make use of company vans to tote around workers, equipment, materials, supplies, and more. No vehicle is immune to traffic collisions. Plus, with as much time as these vehicles spend on the roads going between worksites, it only makes sense that commercial auto claims would be popular in this industry. Keep in mind that your personal auto policy–or your employees’ personal auto policies–won’t cover your company vans or trucks if they’re damaged in a crash. You’ll need to have a commercial auto policy in your toolbox.

Do I have enough coverage?

Having enough coverage to protect your business against all that go wrong is crucial. If you aren’t sure if what you have is enough, AHI has got your back. Much of what we do is advise you in the way of coverage; we suggest where you might need to fill in your gaps by purchasing new coverage, plus we can identify where you can “trim the fat” a little. We can suggest modifications, limit increases, and more. Give us a call to find a great deal on your contractor insurance.

Protecting your home in the face of severe weather

Posted on by AHI Group

Extreme heat in the Southwest is causing powerful storms in the U.S. this week. Winds up to 80mph are expected, reaching across western Oklahoma, eastern New Mexico, and western Texas. The truth is the summer, despite its warm weather and fun activities, brings extreme storms that can cause serious property damage–and we’ve seen more of these damaging events in recent years than ever before.

Did you know that 2023 marked the U.S.’s costliest year on record for severe storms, surpassing $50 billion in insured losses, according to a study released by the Insurance Information Institute? This issue is impacting everyone, and it’s even causing your home insurance rates to increase.

Regardless of the type of weather your area might be facing, heed our advice for protecting your home (and other physical assets, like your car!) against storm season. Being proactive could even help you save money on your auto and home insurance.

How is severe weather affecting my insurance rates?

As climate change intensifies, the frequency and severity of natural disasters such as hurricanes, wildfires, floods, and tornadoes have increased.

Insurance providers are facing more claims as well as higher claim costs as a result of the extensive damage being done to property, including homes and vehicles. To ensure they can continue to pay claims, insurance companies are raising premiums across the board. Homeowners in high-risk areas are particularly affected, often experiencing substantial hikes in their insurance costs or, in some cases, finding it challenging to obtain coverage at all.

The unpredictability of severe weather events complicates risk assessment for insurers. This uncertainty leads to a more conservative approach in pricing policies, contributing to higher premiums nationwide. Insurers also need to factor in the cost of reinsurance—insurance for insurers—which, just like ordinary property and casualty insurance, has become more expensive due to the increased likelihood (and severity) of catastrophic events.

What can I do?

Climate change is such a complicated issue. While you can do your part in being a good eco-warrior, severe weather won’t hold off just because you use bamboo cutlery. To protect your property, you need to be proactive–and that starts by being a good homeowner.

Before the weather hits

Even before a storm is in the forecast, it’s good to take proactive measures and fortify your home’s defence. Come spring and summer, it’s likelier that you’ll start to see high winds, heavy rain, and hail–all of which can be seriously detrimental to your property.

Always ensure your home is well-maintained. Clean out eaves troughs and downspouts regularly, and ensure that your downspouts are always extending away from your home at least six feet. Alternatively, you can set up a rain barrel to collect water runoff from your roof.

Notice any cracks in your walkways, patios, or driveways? Seal those up! It’s a good time to also look for any leaks, seepage, or cracks in the foundation of your home, crawl space, or basement. Get these repaired before the weather hits, or severe weather could just as well worsen the issues you’re already seeing and seriously accumulate the cost of repairs.

If you are scheduled for a roof replacement, consider materials that may help to reduce damage to your home. Depending on the kind of weather you experience, you might consider a metal, asphalt shingle, clay, or even a tile roof! Remember as well: the age of your roof can impact your roof’s durability, so if your roof is getting too old then it might be time to consider a new one.

When the storm is coming

Severe weather in the forecast? Doing some last-minute preparations for your home can be the difference between small repairs and major restorations–sometimes even thousands of dollars. We recommend subscribing to your local weather alerts so that you’re aware when a storm is about to hit.

If hail or high winds are in the forecast, park your car somewhere indoors or take it to a public underground parking lot where it will be safe from the impact of flying debris or ice. Be careful if you do decide to take your vehicle to an underground parking lot, as odds are, many other drivers will have the same idea and the roads might be treacherous! Also, if the hail has already started and parking your car indoors is not an option, cover it with a thick blanket to reduce the impact.

Make sure you’ve cleared all loose furniture from outside your home or brought it inside. High winds can make something as insignificant as a lawn chair a very dangerous projectile.

After the storm

After the storm, if your home has sustained damage, it may be time to consider making a claim. If the damages are small enough that you can do the repairs yourself, i.e.: a broken window, a couple of dents, or some landscaping got thrown around, you may want to avoid claiming to reduce the chances of tarnishing your current insurance record. The more claims you make, the more your insurance will increase as you’re considered a slightly higher risk.

If your home has been severely damaged, don’t re-enter until it’s safe to do so. Falling debris or roofing materials could be hazardous to you and your family members. Only re-enter when you’re allowed to. Take as many photos and videos as you can during this time, as evidence of your loss can help expedite your claim. And, finally, work with an agent! An AHI agent can guide you through this process. As stressful as making an insurance claim is, it’s that much easier with an expert in your corner.

Reinsurance rising: What’s happening to your home insurance rates

Posted on by AHI Group

On January 1, 2024, U.S. property catastrophe reinsurance rates rose by as much as 50%. To the average onlooker, this may seem like unimportant news; in the grand scheme of this, it’s just another of many figures going up. However, the status of reinsurance, and its price points, have a direct influence on the rates you’ll pay for your property insurance. Home insurance is just one example of a product that’s being impacted by the jump in reinsurance costs.

How exactly does reinsurance costs rising impact your home insurance? Let’s dig in.

What is reinsurance?

Suppose insurance is an agreement between the insured and the insurer. In that case, reinsurance is an agreement between an insurance company and another insurance company, wherein the latter agrees to cover the former if the former is obligated to cover a catastrophic loss beyond what their premium pool can pay out for. Reinsurers, aka insurance companies for insurance companies, are companies that sell insurance to your typical P&C or commercial insurance companies.

Insurance companies manage their own risk by buying insurance. If an area an insurance company sells home insurance to experiences a massive wildfire, they may find that their premium pool is insufficient in managing all the claim payouts. In this instance, they’ll turn to their reinsurance provider, whose contract states they’re obligated to cover the remaining losses. Having reinsurance also means that insurance companies need to have less capital on hand, which means they don’t have to charge as high of premiums and can invest excess capital elsewhere. Reinsurance also ensures insurance companies can take on more policies and business, as their risk is less overall.

How does reinsurance impact my insurance?

But, like any business in the insurance industry, reinsurance is impacted by things like climate change and inflation. The more losses there are, the more payouts there are. The more payouts there are, the more reinsurance providers are having to dig into their own pool of funds, thereby requiring more capital. They raise their rates, so insurance companies raise the rates for their insured to offset the increased expense.

The result? Higher insurance premiums. Of course, this is nuanced and the impact depends on where you live. Some areas are more exposed to losses and natural disasters than others. Florida’s reinsurance dependency has increased over the last couple of years due to frequent and severe weather-related losses, inflation, and other effects. This has caused some insurance providers to altogether exit the state, and new, high-risk providers have entered.

What are the benefits of reinsurance for policyholders?

Despite the rate increases, reinsurance isn’t a bad thing for policyholders. Quite the opposite, really. For one, it allows insurance companies to offer business in areas that they might not ordinarily consider due to the decreased risk. You may have found your preferred insurance company due to this reason.

Reinsurance also guarantees you receive your true and fair settlement following a loss, even if your insurance provider’s funds run dry. This risk is sometimes higher for smaller insurance companies. Reinsurance comes in to serve as an additional layer of protection for both yourself and your insurer. Your insurer receives the assistance it needs, and you get the compensation you’re entitled to.

Reinsurance also keeps rates down, in a sense. Because the risk is more spread between your insurance company and the reinsurer, your insurance company needs to keep less capital “on-hand” and therefore doesn’t need to charge more in premiums.

How do we find affordable home insurance amid rate increases?

Assessing your insurance needs during a hard market, like the one the insurance industry is currently faced with, is no easy task. At AHI, our agents are here to help you through these difficult times. When it seems like the cost of everything is on an endless rise, it can be overwhelming to find the right starting point! While raised rates aren’t ideal, we can still help you find a good deal.

Here’s what we might suggest:

Review your insurance needs with an agent

Your insurance needs will change year-over-year. Schedule a review with an agent and go over your insurance needs to see where adjustments may need to be made. Who knows? An agent may even be able to identify eligible discounts or highlight potential coverage gaps and vulnerabilities. They can even help you “trim the fat,” so to speak, and remove excess, unnecessary coverage.

Raise your deductible

Your deductible is your percentage of the risk your insurance company takes on, so you’ll be responsible for it when the time comes to make a claim. Roof damage worth $3,500? If your deductible is $1,000, you’ll be required to pay $1,000 towards the repairs before your insurer covers the remaining $2,500. Raising your deductible can qualify you for lower insurance premiums, but talk with an agent before choosing this option. This isn’t ideal for those who might struggle to pay the new deductible amount.

Shop around with an agent

Maybe your current insurer is no longer the best option for you. Ask an agent to help you shop around and find a better rate. You may be able to find a provider who better suits your needs, or one who offers a deal that you qualify for that overall gives you a better rate than your previous provider.

Ask about discounts

Some insurance companies will discount your home insurance if you bundle it with your auto insurance. Many will discount your auto insurance policy if you have multiple vehicles insured through the same policy. There’s plenty of other discounts out there, too. Claims-free, retiree, green home, and more. Ask your agent what discounts your insurer offers and how to qualify!

An agent is your best resource in hard times. Give us a call at 913-839-1478 or request a quote.

Do subcontractors need their own insurance?

Posted on by AHI Group

Did you know that there were 3,776,498 construction businesses in the U.S. as of 2023? This number wouldn’t be at all feasible without the support of the subcontractors who make it all happen.

Subcontractors help carry out difficult, sometimes very specific construction work. They may be exposed to a variety of liabilities as a result of the kind of work they do. Due to this, subcontractors, like general contractors, need insurance. The contractor insurance that your employer has may not include subcontractors in its terms; if this is the case, you, as the subcontractor, may need to buy your own insurance. An insurance policy can help protect you from unexpected lawsuit costs, workplace accidents, and even accidental property damage.

Can subcontractors be covered under their general contractor’s insurance policy?

Theoretically, if a general contractor’s insurance policy included subcontractors, then yes. Generally speaking, however, subcontractors are not automatically covered under a general contractor’s insurance policy, and most standard policies for general contractors won’t include subcontractors. However, there are nuances and specific conditions where some level of coverage may be extended.

It is recommended that subcontractors acquire their own insurance irrespective of the kind of insurance coverage their employer has, as oftentimes the extension of a general contractor’s insurance policy can be limited. An additional insured endorsement can be added to a general contractor’s policy, extending some of the policy’s protections to the subcontractor. This generally includes liability coverage, commercial auto, worker’s compensation, and so on.

Again, this can be limited. This endorsement generally only covers the subcontractor for claims arising directly from the subcontractor’s work on the general contractor’s project and typically does not cover the subcontractor’s independent activities or other projects.

What types of insurance do subcontractors need?

The specific types of insurance needed for subcontractors can vary based on the nature of the work, the industry, and contractual obligations. Here are some of the most common types of insurance that subcontractors should consider:

General liability insurance

General liability insurance is fundamental for subcontractors. It covers third-party claims of bodily injury, property damage, and personal injury. For example, if a subcontractor accidentally damages a client’s property or if someone is injured on the job site due to the subcontractor’s work, this insurance provides protection.

Workers’ compensation insurance

Workers’ compensation insurance is typically required by law if a subcontractor has employees. It covers medical expenses and lost wages for employees who are injured or become ill due to their work. Even if not legally required, having workers’ compensation insurance can protect a subcontractor from significant financial liabilities.

Commercial auto insurance

For subcontractors who use vehicles for their business, commercial auto insurance is necessary. It covers vehicles owned or leased by the business for damages resulting from accidents, theft, or vandalism. This insurance is crucial for transporting tools, equipment, and workers to job sites.

Equipment and tools insurance

Subcontractors rely heavily on their tools and equipment. Equipment and tools insurance, sometimes called inland marine insurance, protects against the loss, theft, or damage of these assets while in transit or at a job site. This coverage ensures that subcontractors can quickly replace essential tools and equipment if needed.

Bond insurance

While not technically insurance, bonding is often required for subcontractors, especially those working on public projects or large contracts. Performance bonds and payment bonds guarantee that the subcontractor will complete the project according to the contract terms and pay their suppliers and workers. Bonds provide assurance to clients that the subcontractor is financially stable and reliable.

The benefits of insurance for client-business relationships

Having contractor insurance, or any type of commercial insurance as a business, is crucial to fostering strong client-business relationships. For subcontractors, having comprehensive insurance coverage demonstrates professionalism, reliability, and a commitment to risk management. Clients feel more secure and confident working with subcontractors who are well-insured, knowing that potential risks and liabilities are adequately covered. This assurance can lead to increased trust and credibility, enhancing the subcontractor’s reputation in the industry.

Insurance can facilitate smoother project execution, as it ensures that any unexpected incidents are promptly addressed without financial strain on either party. Being properly insured not only protects the subcontractor’s business but also strengthens the overall client-business relationship, leading to more successful collaborations and long-term partnerships.

Get insured with AHI Group

Have questions about your insurance coverage? Interested in getting protected as a subcontractor? AHI Group has many options for contractors, from more general options to specialized artisan contractor insurance. Give us a call at 913-839-1478 or request a quote today.

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