With an estimated $150 billion to be spent between 2017-2019, New York City construction costs are ranked amongst the highest in the world. While bidding for jobs in this competitive and fast-paced market, many contractors are looking for ways to keep their overhead down. When calculating the costs and expenses for upcoming projects, going for the cheapest insurance policy may be tempting, but this decision could leave your business in financial turmoil.
The New York Labor Law (NYLL) has made it harder to obtain insurance, but there are still many carriers offering comprehensive coverage. Be ready to pay a decent price for good coverage, and if you do go for the inexpensive, make sure your broker clearly lays out what’s not covered for your specific business. Again, choosing an insurance company based on price (say it with me) is a BAD business decision.
When purchasing property, you typically complete an inspection to get a full view of any hazards or potential liabilities. Why not treat your insurance the same? Always consult with your broker to review different coverages being offered by other carriers and discuss any hammer clauses, exclusions, and gaps that may exist in each program. If the insurance is cheap, it’s most likely an indicator that there are certain exclusions or conditions that could hurt your business in the long run.
Review your policies annually. Contractor’s insurance products are not one-size-fits all policies. Your business may have special risks that other general contractors do not. Make sure your broker is notified of any changes to the nature of your operations and that it is taken into consideration when reviewing the limits and exclusions in your policy.
A good broker will help you find ways to cut costs without cutting corners.
Are you worried that your cheap insurance policy may have gaps or exclusions that pose as a risk to your company? Call me today. I can help you determine what policy best fits your needs as a general contractor in New York.
Opinions expressed in this article are solely the author’s opinion, not intended to provide the reader with legal or any other professional advice. Should you need advice or opinion, consult with a qualified professional to address your specific needs.