For executives of mid-sized and large construction companies, insurance is a significant business expense. When renewal time comes around, rising premiums can leave business owners, CFOs, and other decision-makers asking an important question:
Are we paying a competitive price for our insurance, and are we getting the coverage and service our company needs?
Many construction companies spend hundreds of thousands of dollars annually on insurance, yet they may not have a clear understanding of whether their current program is competitive.
At Contractors Risk Solutions, we understand these concerns. Reviewing your insurance program with a broker who specializes in construction insurance can help you better understand your coverage, pricing, and available options.
Why Construction Companies Should Review Their Insurance Programs
For mid-market construction companies, insurance expenses can represent a substantial portion of their operating costs.
Workers’ Compensation, General Liability, Commercial Auto, and Umbrella Insurance are essential components of a construction company’s insurance program. However, as premiums continue to increase, executives may begin to question whether their policies are still competitively priced.
Some companies may also feel that they are not receiving the level of service they expect from their current insurance broker.
Without a clear understanding of the insurance market, it can be difficult to determine whether higher premiums reflect current market conditions or whether better options may be available.
This is where an independent insurance program review can provide valuable insight.
What Does a Construction Insurance Program Review Involve?
An insurance program review involves having an experienced insurance broker evaluate your existing policies, coverage, and pricing.
For construction companies, this typically includes reviewing:
- Workers’ Compensation Insurance: Evaluating current rates and the company’s Experience Modification Rate (EMR or X-Mod).
- General Liability Insurance: Reviewing existing coverage and premium pricing.
- Umbrella Insurance: Assessing the additional liability protection included in the program.
- Commercial Auto Insurance: Examining coverage and pricing for company vehicles.
A broker who specializes in construction insurance understands the types of coverage construction businesses require and has insight into the carriers and pricing available in the marketplace.
At CRS, Matthew Rogers works with construction companies to help determine whether their current insurance programs are aligned with competitive market pricing.
In many cases, an initial review can provide a preliminary assessment within approximately 24 hours, depending on the information available.
The goal is to help executives understand whether their company is in a good position with its existing insurance program or whether certain areas deserve a closer look.
Do You Have to Change Insurance Brokers to Get a Second Opinion?
One concern many construction executives face is the possibility of disrupting an established relationship with their current insurance broker.
Perhaps you have worked with the same broker for years. You trust them, value the relationship, and appreciate the service they have provided.
However, you may still have questions about your insurance costs.
You might consider shopping your policies with other brokers, but doing so can potentially notify your current broker that you are exploring alternatives.
The good news is that you can request an insurance program analysis without immediately changing brokers or formally shopping your insurance policies.
An experienced construction insurance specialist can evaluate your existing program and provide an assessment of your current coverage and pricing.
If your insurance program is already competitive, that information can provide reassurance.
If the review identifies potential concerns, you can better understand your options before making any decisions.
Understanding Whether Your Insurance Rates Are Competitive
Insurance pricing can vary depending on several factors, including the type of construction work performed, Workers’ Compensation experience modification rates, existing coverage, and current insurance market conditions.
For construction executives responsible for managing substantial insurance expenses, having a knowledgeable broker review these factors can help clarify whether their company is paying a reasonable amount for its coverage.
At CRS, our focus is not simply on finding a lower premium.
We want construction companies to understand whether they are receiving competitive pricing, appropriate coverage, and the level of service their business requires.
An insurance program review can help identify potential areas of concern while providing a clearer picture of where your company stands in today’s insurance market.
Get a Second Opinion on Your Construction Insurance Program
If you are an executive, CFO, or business owner of a mid-market construction company and have concerns about rising insurance premiums, it may be time to have your insurance program reviewed.
You do not necessarily have to change brokers to gain a better understanding of your coverage and pricing.
At CRS, Matthew Rogers specializes in construction insurance and works with contractors to evaluate their insurance programs and help them make informed decisions about their coverage.
Whether your current program is already competitive or there may be opportunities for improvement, an experienced second opinion can provide valuable insight.
Have questions about your construction company’s insurance program?
Contact Matt Rogers at Contractors Risk Solutions to discuss having your existing coverage and rates reviewed.
CRS – Contractors Risk Solutions
Helping construction companies better understand their insurance programs and make informed risk management decisions.