A construction site is susceptible to various types of risks, which can mount from accident, theft, damage, legal claims and much more. Therefore, it is indispensable to go with a construction all risk insurance policy to get complete coverage for unforeseen situations.
Even most business contacts, as well as simple common sense, dictate that every contractor should carry construction all risk insurance policy. Still, there is no reason to pay an unnecessary high premium as there are various ways through which you can trim your construction all risk insurance policy premium rates.
1.Shop around: It is essential to spend some time and effort in comparing the costs which are offering by multiple insurers. To facilitate the process, you can take the help of SecureNow, a leading corporate insurance advisor, who can generate multiple policy quotes which you can compare to choose the best insurer. Together, you can weigh the total costs of various policies and choose that policy which suits your business. The best part about taking the help of SecureNow is that they advise you without a vested interest in selling the particular insurance product.
2.Review insurance coverage periodically= If you have bought the construction all risk insurance policy, review it at the time of renewal to make sure it reflects your current circumstances. As you would have to pay an extra premium to add extra coverages like interests of manufacturers, suppliers and sub-contractors, think twice before adding any additional covers. Choose only the relevant covers and discontinue those sections which you don’t require. In this way, you can trim your premium.
3.Increase deductibles: If you are comfortable assuming some additional risks on yourself and have sufficient resources to fall back, see how much you can save on premiums by increasing the deductibles on your policy. In the insurance field, the deductible is the amount that you would have to pay at the time of claim before the insurer settles the remaining claim amount. You can opt for the higher deductible limit and enjoy lower your insurance premium. However, be discreet while raising your deductible limit. There is no point in having the insurance policy if you would have to pay a substantial claim amount from your pocket.
4.Pay entire premium upfront: Your construction all risk insurance premium can be paid in installments but consider paying the entire premium up front. You can usually save a certain money by doing so as many insurers offer discounts if the entire premium is paid upfront.
5.Focus on your workplace safety: Safety on the job site is indispensable, but emphasizing its importance to workers, contractors and supervisors can actually affect your construction all risks insurance costs. As the premiums you pay are also based on your claim history, therefore, by offering the regular safety training and protective equipment; you can trim the risk of on-site accidents and thus, curtail the damages and injury claims. You can create a comprehensive risk management plan, which can include the following:
- A thorough training program for all your employees
- Invest in a security system
- Minimize hazards to your premise
- Strictly enforcing safety regulations
Also read: Construction All Risk Insurance Policy
Cut Construction All Risk Insurance Premiums Without Cutting Corners
Remember the purpose of construction all risk insurance is to give you utmost protection in the event of an accident and third-party liability, and therefore, don’t choose the policy merely on the basis of the premium. Go with the particular construction all risk insurance policy if it is offering comprehensive coverage and the insurer enjoys high claim settlement ratio, even if it means paying a slightly higher premium. There are many other areas in your business where you can save money, so think twice before reducing the coverage just to save premiums!
