How Roofing Contractors Can Keep Insurance Premiums Low
As a roofing contractor, you know you need insurance. However, even if you don’t make a claim, you may find that every year, your premiums increase. While this is natural and normal to experience, you want to keep costs as low as possible without sacrificing precious coverage. To help do just that, check out these proactive opportunities.
- Know how your company is billed for premiums
Knowing how your carrier calculates your premiums is important. Typically, there are three methods carries use: gross sales, subcontractor costs, and payroll costs. If the majority of your business is from subcontractors and your premium is derived from gross sales, you could be being charged too much.
- Think about deductibles
Just like your auto and home insurance, the higher the deductible, the more you can save on your premiums. Since you take on more financial responsibility by raising your deductible, the insurer will reward you with lower premiums. Keep in mind, though, that this deductible should be an affordable out-of-pocket cost if the worst does happen.
- Buy in bulk
Some carriers offer a tiered rating system when you initially set up the policy. This means that you will receive a better rate if you anticipate more sales at the onset of the policy. It can be a bit of a balancing act, knowing that you’ll end up paying your share in the end but not more than necessary.
Have questions regarding your general liability insurance? Talk to the team at Nahai Insurance Services! We can help you secure the right coverage for your needs today.