Category: Commercial Insurance

Suppose you’ve ever shopped for business insurance as a professional before. In that case, you may have come across the term “E&O”. E&O, short for errors and omissions, outlines the kind of mistakes or misinformation that someone in a professional line of business could be accused of. E&O can be a big deal, sometimes resulting in tremendously costly lawsuits that can put you out of work for good.

E&O has always been a risk for professionals, but the new wave of AI has caused a surge of AI-related lawsuits over privacy infringement and copyright. Professional liability insurance, also called errors and omissions (E&O) insurance, is more important than ever to protect business professionals.

What is E&O insurance?

Errors and omissions insurance and professional liability insurance are the same thing, to summarize the topic shortly. However, businesses and insurers may use different names for similar/the same coverage, so it’s important to recognize that they refer to virtually the same policy. Whatever you call it, this type of insurance protects against claims of negligence, mistakes, or failure to perform duties that result in a financial loss to a client. Although it’s often referred to as E&O insurance, particularly in industries like real estate, insurance, and consulting, the term “professional liability insurance” is also widely used, especially in fields like law, medicine, and engineering.

E&O insurance is designed to cover the legal costs and any settlements or judgments that arise from claims of professional negligence. For example, if a financial advisor gives advice that leads to a client’s financial loss, the client might file a lawsuit claiming that the advisor’s guidance was flawed or incomplete. In such cases, E&O insurance would cover the costs of defending against the claim, as well as any damages awarded, up to the policy limits.

Why is E&O insurance also called professional liability insurance?

Errors and Omissions (E&O) insurance and professional liability insurance are terms often used interchangeably, but they essentially refer to the same type of coverage. The reason for the different names lies in the specific industries and professional practices where this insurance is most commonly utilized.

E&O insurance is a term frequently used in industries like real estate, consulting, and insurance. It emphasizes coverage for errors and omissions—essentially, mistakes or failures to perform certain duties—that could lead to a client’s financial loss. For example, if an insurance agent incorrectly processes a policy that results in a client being underinsured, the client could file a claim against the agent. E&O insurance would then cover the defense costs and any resulting financial liabilities.

On the other hand, professional liability insurance is a broader term that is commonly associated with professions such as law, medicine, and engineering. This term highlights the protection provided against claims of professional negligence or malpractice. For instance, a lawyer might be sued for providing poor legal advice that leads to a client’s loss in court. In this scenario, professional liability insurance would cover the associated legal expenses and any damages awarded.

Another name for E&O insurance includes medical malpractice insurance which, while it is technically also professional liability insurance, is more slanted towards medical professionals and the kinds of E&O claims that they may face.

The distinction in terminology often depends on the industry and the specific risks associated with it. However, medical malpractice, E&O and professional liability insurance serve the same fundamental purpose: to protect professionals from the financial consequences of claims alleging that their services or advice caused harm to a client. Whether referred to as E&O insurance, medical malpractice, or professional liability insurance, this coverage is a vital component of risk management for anyone offering professional services.

Who needs E&O insurance?

Any business or individual who offers a professional service or advice in exchange for monetary compensation could technically need or even be required to carry E&O insurance.

Here’s a list of some professionals who may benefit from or be required to carry E&O:

• Consultants
• Accountants
• Lawyers
• Therapists
• Social workers
• Nurses
• Chiropractors
• Physiotherapists
• Acupuncturists
• Advisors
• Architects
• Engineers
• Media and marketing professionals
• IT professionals

Note that this list is really finite, and your profession may fit the bill of a business that could benefit from–or even is required to carry–E&O/professional liability insurance.

Give us a call at AHI Group

Finding affordable coverage and understanding why it’s a need can be tough when you’re busy trying to build your business. That’s why insurance agencies like AutoHome Insurance Group exist!

If you’re a professional who is unsure of their insurance needs, has a policy but wants a better price, or wants to discuss the benefits of E&O insurance (or any of its variations), then you’ve come to the right place. At AHI, we help businesses that need affordable, comprehensive insurance protection. Give us a call to get started on insuring your professional business today.

Getting into the commercial real estate game isn’t for the faint of heart. In the United States, there are around 5.9 million commercial buildings; landlords of these businesses, the owners, may be required to obtain real estate business insurance to protect their assets and ensure the smooth operation of the tenants within your business.

But how much does it cost? One of the most vital aspects to running any business is ensuring you have adequate protection, including commercial landlord insurance for those whose business is in renting out business property. Here’s the rundown.

What is commercial landlord insurance?

Commercial landlord insurance is a specialized type of business insurance that is designed to protect property owners who rent out commercial spaces, such as office buildings, retail stores, warehouses, and industrial properties. This insurance typically covers a range of risks and losses that are commonly associated with owning and leasing commercial real estate, including:

1. Property Damage: Covers the cost of repairs or replacement if the building or its contents are damaged by perils such as fire, vandalism, or natural disasters.
2. Liability Coverage: Protects the landlord against legal claims if someone is injured on the property or if the landlord is found liable for damage to a tenant’s property.
3. Loss of Rental Income: Compensates the landlord for lost income if the property becomes uninhabitable due to a covered event, such as a fire or flood, preventing tenants from occupying the space.
4. Legal Expenses: Covers legal costs associated with disputes, such as evictions or contract issues with tenants.

Commercial landlord insurance policies may be customized, in the same way any commercial insurance policy can be. Working with an agent can help you determine exactly the kind of coverage your business may need, while cutting away the fat (the coverage you don’t need) and saving you money.

How much is commercial landlord insurance?

The cost of commercial landlord insurance can vary widely depending on several factors, typically ranging from a few hundred to several thousand dollars annually. The specific cost will depend on the value of the property, the types of coverage included, and the risk profile of the business. Every insurance company is different, keep in mind. Some insurance companies will charge more or less for specific types, sizes, or locations of properties, all depending on how they weigh certain factors.

Generally, premiums are influenced by the location of the property, the type of building, its age and condition, the business activities conducted on the premises, and the level of coverage desired. However, it’s a lot more in-depth than that. Here’s a list of the factors that may influence the cost of your insurance:

Location

Where a building is located in a city, and what city it’s in, can have a significant influence on insurance premiums. Some cities see more crime, worse weather, and similar disastrous events, which could result in a building being more at-risk of a loss. The likelier the loss, the more expensive the insurance.

Property Value

The higher the value of a property, the more the insurance will cost. This is because, ultimately, that building will cost more to replace due to an accidental loss.

Type of Building & Age

Older constructions and unique constructions may be more vulnerable to potential losses than newer, structurally sound builds. Special features will also cost more to insure.

Business Activities

The type of businesses that are leasing your commercial space can impact risk, affecting insurance costs. For example, retail businesses operating in your commercial space may not cost as much to insure as if you leased to, say, an indoor arcade or axe-throwing facility.

Coverage Limits

The more coverage you buy, the more it will cost. The same goes for increasing limits, and also having a lower deductible–meaning the insurance company pays out more in the event of a loss–can increase your insurance rates as well.

Claims History

Having had previous claims can be an indicator of making claims again in the future. If you’ve had a lot of claims, or severe ones, your insurance rates could be higher.

Security and Safety Features

Properties with robust security systems, fire alarms, and sprinkler systems may benefit from lower costs.

Connect with AHI Insurance for lower commercial property insurance costs

At AHI Insurance, we understand the unique challenges and risks associated with owning commercial properties. Our experienced team is dedicated to helping you find affordable and comprehensive commercial landlord insurance tailored to your specific needs. We work with a variety of top-rated insurance providers to offer competitive rates and customizable coverage options. Whether you own a small office building or a large retail complex, AHI Insurance is here to provide you with peace of mind and financial protection. Let us help you secure the best coverage at the best price, so you can focus on managing your property with confidence.

Medical malpractice. That’s a scary word for any healthcare professional, and it’s why healthcare professionals–and why doctors take the Hippocratic Oath, to avoid going against their patients’ interests. But if all else fails, and something does go wrong, it’s good to know there’s insurance in place to help.

With approximately 1 in 3 medical practitioners sued for medical malpractice in the US, it makes all the more sense why this coverage would be highly sought after. Explore what this coverage is, why it helps, and whether or not your clinic should have it.

First of all – what is medical malpractice insurance?

In short, medical malpractice insurance is another designation of professional liability insurance. It’s a subgroup of E&O and it covers more specific risks faced by healthcare professionals.

The longer definition of it is this: a type of professional liability insurance designed to protect healthcare providers against claims of negligence and errors. It’s crucial for doctors, nurses, and other medical professionals, as it helps cover the legal costs and settlements or judgments associated with lawsuits alleging mistakes in patient care. Claims covered by medical malpractice insurance can arise from various scenarios, including misdiagnosis, surgical errors, and improper treatment.

Even highly skilled and experienced practitioners can make mistakes, and the consequences can be severe, both for the patient and the healthcare provider. After all, malpractice claims can be financially devastating and damage a professional’s reputation and career—sometimes irreparably.

Is medical malpractice insurance required by law?

Unlike some other types of E&O insurance, medical malpractice insurance is almost always required by state law for medical clinics, particularly hospitals and is usually a prerequisite before obtaining certain kinds of medical licenses. Even if it isn’t required by your profession, it’s highly recommended. The cost of a lawsuit can be high, and the damage to your reputation even moreso.

Here’s a list of professions generally required to carry medical malpractice insurance:

• Nurse
• Psychotherapists
• Dentists
• Physiotherapists
• Psychiatrists
• Physicians
• Optometrists
• Social worker

State laws, however, vary. There’s no federal requirement for this type of insurance. Seven states presently require the acquisition of medical malpractice insurance for certain healthcare professionals (such as those listed above): Kansas, Massachusetts, Rhode Island, Colardo, Connecticut, New Jersey, and Wisconsin. Exact requirements vary by state, but the amount of coverage needed varies from $100,000 to $1 million per occurrence, and then $300,0000 to $3 million in annual “aggregate coverage.”

Some states have similar requirements, but instead of a hard mandate, it’s a minimum level of coverage for medical professionals to participate in state programs, which can limit the damages that a malpractice claim can bring or offer supplemental malpractice insurance. This includes New York, Pennsylvania, Wyoming, Nebraska, Indiana, Louisiana, and New Mexico. In California, it’s only required of physicians to have malpractice insurance if they do outpatient surgery.

In order to be exempt from insurance in Florida, doctors must have an escrow account, post a bond, or receive an irrevocable line of credit letter from a lending agency or bank. This cannot be used for legal fees. It also must be made known to patients they don’t carry malpractice insurance.

Why carry medical malpractice insurance?

Why should doctors and medical professionals carry malpractice insurance? Because it safeguards them against the financial and reputational risks associated with lawsuits alleging negligence or errors in patient care. This insurance, as part of an overall medical offices insurance plan, covers legal costs, settlements, and judgments, ensuring that practitioners can focus on providing quality care without the constant fear of potential litigation. Plus, depending on the state you’re in, it can be a requirement! Even if your state doesn’t require medical malpractice insurance, it’s greatly recommended.

How much does medical malpractice insurance cost?

It varies by profession, state, and coverage level. Professional liability insurance generally costs around $50-$100 a month for a small healthcare clinic, but keep in mind that other factors will influence your final pricetag:

• The size of your clinic
• Your daily operations – what you do, activities
• If surgeries are performed
• The location of your clinic
• Policy limits and deductible amounts
• Previous medical malpractice claims

Medical malpractice will not cover you against every business risk there is. Depending on your business’ specifics, you could benefit from having other policies, which also could be required. General liability, commercial property insurance, tools and equipment insurance, etc., are all coverages that can be of benefit to healthcare clinics.

AHI Group can help your medical office or healthcare clinic find the best medical malpractice insurance tailored to your specific needs. With a deep understanding of the unique challenges faced by healthcare providers, we offer personalized service to navigate the complexities of malpractice coverage. Our expert team evaluates various insurance options to ensure comprehensive protection at competitive rates. By partnering with AHI Group, your practice can benefit from customized solutions that provide peace of mind and allow you to focus on delivering exceptional patient care!

Consultants are specially trained or experienced individuals who are paid in exchange for providing professional expertise, usually to do with a specific project, industry, or topic. They often have strong relationships with their clients and successful consultants do well to invest in marketing and networking. What kind of insurance do they need, though? Is professional liability insurance a must for contractors, especially as most of their business revolves around giving advice?

The short answer here is: yes, consultants do need professional liability insurance (also called errors and omissions, or E&O for short.) Due to the potentially sensitive nature of the advice they offer, consultants may be more at-risk than other industries and professionals. Here’s how professional liability insurance (among other coverages!) can help protect you as a consultant.

Professional liability insurance for consultants

In a nutshell, professional liability insurance in the context of insuring consultants protects these professional individuals if they should ever make a mistake, forget something, or fail to offer their promised service to a client. Since the failure on the part of the consultant could cost the client a huge amount, it could result in a lawsuit. In the event of an error or omission, professional liability insurance would provide the consultant with the protection they need.

What kind of mistakes or claims made by a consultant would be covered by E&O?

Here’s a list of some of the kinds of mistakes or errors that professional liability insurance can cover:

Professional Negligence

A mistake or oversight in the consultant’s work, such as not accounting for a specific deadline or budget, could lead to significant financial loss for a client. The client could sue, leaving the consultant faced with hefty legal defence costs.

Legal Defense Costs

Any lawsuit pertaining to an E&O event may be covered by professional liability insurance, including the following expenses: attorney fees, court costs, and settlement expenses.

Misrepresentation

A consultant could be faced with a claim following an incident where the consultant provided misleading information or failed to provide important information to a client.

Breach of Contract

Professional liability insurance can cover claims that arise from a consultant not fulfilling contractual obligations as agreed upon in their consultant-client contract.

Failure to Deliver Services

If the consultant fails to deliver services as promised/either fails to provide services altogether or fails to meet expectations, they may be faced with serious trouble. Professional liability insurance could help in an instance like this.

Is professional liability insurance required for consultants?

Consultants certainly should have E&O insurance, given the extent of what could go wrong, but is it actually required? In some cases, certain insurance coverages are required by law. It depends on the state and industry, of course, but businesses can get in serious trouble if they’re found to be underinsured.

Professional liability insurance is not universally required for consultants, but technically its necessity depends on the industry, client contracts (some contracts will include conditions that the consultant carries their own insurance coverage,) and legal regulations in the consultant’s operating region.

Many clients, particularly larger corporations and government agencies mandate that consultants carry professional liability insurance as part of their contractual agreements. This requirement serves as a safeguard against potential financial losses resulting from mistakes, negligence, or inadequate work performed by the consultant.

While smaller clients might not always require professional liability insurance, having this coverage can significantly enhance a consultant’s credibility and professionalism. Insurance provides a safety net that protects consultants from the financial burdens of legal defense costs, settlements, and potential damages if a client files a lawsuit. In a field where reputation and trust are of the utmost importance, carrying professional liability insurance not only mitigates risk but also shows a commitment to a higher standard of service.

Is professional liability insurance required for consultants?

The cost of professional liability insurance for consultants varies widely based on several factors, including the consultant’s industry, the size and scope of their business, the level of risk associated with their services, and the coverage limits of the policy. On average, consultants can expect to pay between $500 and $3,000 annually for a basic professional liability insurance policy. For higher-risk industries or those requiring higher coverage limits, the cost can be significantly higher.

Like any commercial insurance policy, factors of your business will impact your rates. For example, a consultant in a field which much higher perceived risks, like financial advisory, could see higher premiums than those in less risky fields. Insurance premiums may also be impacted by geographical location (lawsuits being more expensive in some areas) and, of course, policies with higher coverage limits or add-ons will cost more.

To obtain the best rates, we recommend calling our agents here at AHI and discussing your needs today! We’ll go over your existing coverage and how to find you a great rate. After all, you give such great advice–why shouldn’t you get it back? Our tips and suggestions will guide you towards the ultimate policy that will grant you both peace-of-mind and great savings.

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.

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.

The role of the general contractor in construction cannot be understated. They oversee projects, manage subcontractors, and generally keep everything moving smoothly from initiation to completion.

With such duties comes a significant amount of risk, which is why it’s so critical for these professionals to have their own general contractor insurance. But, when managing all your different costs is so crucial to the success and growth of your businesses, where does the cost of insurance fit in? How much does general contractor insurance cost?

How much does it cost to buy general contractor insurance?

There’s no one true answer to this question. To find the approximate amount your general contractor insurance will cost, it’s better to ask an agent to find you quotes and compare between your different options. Policies for smaller businesses can cost as little as $1,000/year, whereas policies for larger businesses with specific risks may exceed $5,000/year or more.

The cost of general contractor insurance is not a one-size-fits-all figure. Various elements, or “factors,” contribute to the overall premium, each reflecting the unique aspects of the contractor’s business and the risks involved. Here are some of the factors insurers use to price general contractor insurance:

Business size

The size of a contractor’s business significantly impacts insurance costs. Larger companies with more employees, higher revenues, and extensive operations typically face higher premiums due to the increased risk exposure. Conversely, smaller businesses with fewer employees and lower revenue can often secure coverage at a lower cost.

Nature of contracts

The types of projects undertaken by a contractor play a crucial role in determining insurance premiums. High-risk projects, such as large-scale commercial constructions or those involving hazardous materials, generally attract higher insurance costs. In contrast, smaller, less risky residential projects may result in lower premiums.

Coverage types

The specific types of coverage included in the insurance policy affect the overall cost. General liability, workers’ compensation, and professional liability are common coverages for general contractors. The broader and more comprehensive the coverage, the higher the premium.

Location of operations

Geographical location is another important factor. Contractors operating in areas with higher construction activity or regions prone to natural disasters (such as earthquakes or hurricanes) may face higher insurance premiums. Local regulations and the legal environment also influence costs.

Claims history

A contractor’s claims history is a key determinant of insurance costs. Contractors with a history of multiple claims or significant losses are seen as higher risk by insurers, leading to higher premiums. Maintaining a clean claims record can help reduce insurance costs over time.

Business experience

Experience and a solid safety record can positively impact insurance costs. Contractors with many years in the business and a demonstrated commitment to safety are often rewarded with lower premiums. Implementing strong safety protocols and training programs can help improve a contractor’s risk profile.

How do I get more affordable general contractor insurance?

One of the best things to do for your business as a reputable contractor is to look for affordable general contractor insurance that doesn’t compromise on necessary coverage (or fall short of whatever contractual/state requirements that are expected of you!) Doing so is easier when you have an agent in your corner helping you out. While we do recommend giving one of our agents a call to discuss your needs one-on-one, we also have a few steps listed below on suggestions for more affordable general contractor insurance coverage:

Maintain a good claims history

A clean claims history is an asset when seeking affordable insurance. Contractors with fewer claims are viewed as lower risk by insurers, often resulting in lower premiums. Implementing robust risk management practices and safety protocols can help minimize incidents and maintain a favorable claims record.

Increase deductibles on coverages

Opting for higher deductibles on applicable coverages can lower premium costs. While this means paying more out-of-pocket in the event of a claim, it reduces the insurer’s risk, which is reflected in lower premiums. Contractors should assess their ability to cover higher deductibles, possibly with the assistance of an agent, before choosing this option.

Review and update coverages regularly

Regularly reviewing and updating insurance policies ensures that contractors are not overpaying for outdated or unnecessary coverage. As business circumstances change, adjusting coverage to reflect current needs can lead to cost savings.

Shop around and compare quotes

One of the most effective ways to find affordable insurance is to shop around and compare quotes from multiple insurers. Different insurance companies have varying pricing models and coverage options, so obtaining several quotes allows contractors to identify the best value for their specific needs. An agent can do this with you/on your behalf.

Give us a call

General contractor insurance is a not a one-size-fits-all, so it’s important as someone looking to continue their business for years to come to find a good fit. To find great coverage at a great price, work with AHI Group. Our commercial agents are experts in finding excellent coverage solutions for contractors. Give us a call or request a quote on our website.