Construction insurance is an essential protection every business needs to prevent a loss from negatively affecting the business. Have you ever stopped to consider what is your actual risk of sustaining a loss?
Your insurance is there to cover a loss should one occur; however, preventing one is the best protection for your business, employees, and insurance premium. A great way to do this is to perform a yearly review of your construction risk insurance to evaluate your risk level.
Determining Your Company’s Risk Level
As mentioned above, the best way to ensure you have the proper construction insurance policy in place is to yearly check the risk level of your company. A complete review of your current construction risk insurance policy should be done with the help of your insurance provider. Go over all details, such as coverage amounts, exceptions, conditions, limitations and premiums, and how well the current policy protects your company.
A review of your current policy and business details offers an important way for you, your interested stakeholders, and your insurance carrier to compare risks based on current projects and determine whether this coverage is still sufficient.
Yearly Risk Evaluations Are Important
A yearly risk assessment done at policy renewal time gives you a good idea of where the current policy may lack coverage and what must be done to fix that. It provides a chance to evaluate all worked projects from the past year, any risks the business faced, and what risks it may face in the future. Through this assessment of construction risk insurance, you have the opportunity to fine-tune your policy to have the best coverage going into the new policy year.
Studying loss numbers, types of losses, addition or removal of employees, and evaluating overall company performance is a valuable step. It makes it possible to determine whether the company is performing as expected, where to make improvements, and how to reduce risks. As a result, yearly evaluations are instrumental in finding new ways to lower operating costs as well as premiums for construction insurance.
Risk Evaluation Ensures Optimal Coverage
A risk evaluation can be a detailed process that does require some time to complete; however, the many benefits gained make it a worthwhile yearly endeavor. After assessing business risks, you will have a better understanding of your company’s actual coverage needs that provides you with necessary information to compare insurance carriers and policies to find the best fit. This information also plays a critical role in creating an effective risk reduction plan.
Before signing any construction insurance contract renewal, stop to consider whether it might be time for a risk assessment. Don't find out your construction risk insurance does not provide the protection you thought it did after a loss. Instead, plan ahead and work with your policy carrier on setting up a risk evaluation. An assessment can ensure your company has the essential coverage it needs heading into a new work year and offers great insight on how to make your business safer and more profitable!