Top 3 Biggest Construction Insurance Mistakes

As a contractor, you are juggling multiple projects with many moving pieces. Understandably, the nuisances of insuring your construction business can not only be confusing but an afterthought.

So, this week, we sat down with John Quinn, our construction guru, to set the record straight on some construction insurance mistakes many general contractors make.

Improper classification

Misclassifying your employees can cause you to overpay on your workers’ compensation premium. The risk level for an office worker is not going to be the same as someone out in the field. When in doubt, you should always check your payroll breakdown to proper classifications.

Skipping Builder’s Risk Insurance

If you own the building, a builder’s risk policy fills the gaps to some of the exclusions of a general liability policy. Having an ‘it won’t happen to me mentality’ is one way general contractors find themselves in a sticky situation when they need to file a claim. For example, if your work site is damaged in a fire and you don’t have builder’s risk as a part of your policy, you’re going to have to come up with the money to rebuild out of pocket. If the damage is severe, you may not have the means to pay for it and your business could go under altogether.

Outdated Policies

Life gets busy, business operations change, but not keeping your policies up to date is one of the biggest construction insurance mistakes contractors make. Be sure to contact your insurance agent should you move your home office to a new location, hired/fired employees, invested in new equipment, or expanded your services.

Do you have the current amounts for coverage for tools and equipment?

Have more questions that need answering? Contact John Quinn at 617-612-6533 or email him at jquinn@hkinsurance.com.

John began working at H&K Insurance in September 2017. With over 30 years’ experience in the insurance industry, John Quinn is armed with the knowledge and experience to fit your unique needs. He specializes in writing comprehensive insurance policies for general contractors, landscapers, and restaurant owners. Keeping your interests at the forefront of his mind, John works with insurance companies to create policies that fit the philosophy and scope of your business.  Affordable and detailed are two traits that aptly describe the policies he writes. In his spare time, he enjoys taking trips to the Cape and volunteering at his local animal shelter.