Lexie Haase provides her expertise on protecting your business
When you’re searching for the best insurance plan for your construction business, there are many details to consider. One of the most important and financially detrimental aspects to consider is the insurance coverage your business needs to protect yourself from unexpected events.
Lexie Haase, SECURA underwriting expert, understands how confusing selecting the right coverages can be. Her dad is an independent insurance agent, and she practically grew up in the insurance industry. She shares some tips below on selecting the right coverage to fit your needs.
Trade contractors
Trade contractors can span the gamut of the construction industry. Some of the most common types of businesses that Lexie helps are concrete, electrical, excavation, HVAC, janitorial, plumbing, and water well drillers. “At SECURA, we insure a lot of trade contractors, and we’re very familiar with the work, equipment, and coverages needed to protect contracting businesses,” said Lexie.
When she’s collaborating with an independent agent on a new quote for a trade contractor, there are a few coverages Lexie always recommends.
Errors and omissions (E&O)
Errors and omissions coverage protects against faulty workmanship or damages that result from your work. This added coverage also protects your business against labor and material costs associated with redoing work.
Equipment
Lexie can’t stress enough how important it is to have your equipment insured properly. “A contractor’s equipment can be scattered over numerous job sites, so we want to make sure all of your equipment is covered properly. Without equipment, you can’t complete your job to the best of your ability.”
Additional insured WRAP
WRAP is an insurance term that provides a blanket of coverage for specific types of businesses. Lexie shared, “SECURA’s Additional Insured WRAP is a huge time saver for business owners and agents. It provides the five most common forms and coverage requirements for most construction contracts, so there’s no need to endorse your policy every time you sign a contract.”
Commercial general contractors
The types of coverage needed for commercial general contractors differ from the needs of trade contractors. “Whether you’re remodeling or contracting new construction, there are so many moving pieces when you’re building a commercial space, like an office complex or a retail strip mall.” Lexie recommends making sure you have the following in place.
Subcontractor agreements
While not technically a type of coverage, a solid subcontractor agreement is a vital tool every commercial general contractor should have. It transfers financial and liability risk and defines who is responsible for the work and any claims against it. “Our risk management consultants are great resources for our agents and the businesses we write. They can help provide trade-specific tools like this agreement, as well as advice on other business concerns like job site safety and OSHA regulations.”
Certificate of insurance for subcontractors
If you hire a subcontractor or independent contractor, insist on receiving a valid certificate of insurance (COI) from them prior to work starting. The certificate should be kept on file so you can provide it to the insurance auditor when requested. This certificate proves the subcontractor has the proper insurance coverage, and typically applies to any businesses with General Liability and Workers’ Compensation coverages. Without this certificate, your insurance carrier may include an additional charge on your policy to account for the subcontractor.
Umbrella coverage
“In my opinion, an umbrella policy is something every business and individual should have,” said Lexie. “Umbrellas provide businesses with liability protection, above other policy limits. It’s added protection against the unimaginable, and it’s usually quite affordable. I recommend it to all commercial general contractors.”
An experienced independent agent
Whether you’re a trade contractor or general contractor, you’ll want to work with an experienced, knowledge insurance agent. SECURA works with a select group of independent agents. If you’re looking for insurance to protect your contracting business, click here to find an independent agent.
