It’s reasonable to expect the economic headwinds builders faced in 2023 to prevail in 2024. That ups the competition for bidding on new projects. One way to give yourself an edge is to get the insurance coverage you need for the year ahead sooner rather than later.
For many contractors, builders and renovation experts, the end of the year means their existing liability insurance policies are coming due for renewal or will be soon.
With the interest rate hikes initiated by the Bank of Canada now appearing to have the desired effect of slowing the economy – the construction industry contracted by an estimated 5.2 per cent in 2023 due to reduced residential building activity – the competition on bidding for new projects is likely to become increasingly fierce.
That highlights the benefit for contractors to explore their options for renewing their insurance policies and ensure they have adequate, yearlong coverage sooner rather than later.
Here are 10 advantages construction professionals can realize by shopping around for insurance coverage before or early in 2024 to be ready for the year ahead:
- Cost savings
Shopping around allows contractors and builders to compare quotes from different insurers, potentially leading to cost savings. Insurers often have different rates, and exploring your options can help you find the most competitive premium with maximum coverage.
- Customized coverage
Contractors should assess their evolving needs annually and get customized coverage to align with those specific requirements. For example, if your construction business uses artificial intelligence platforms for bidding, asset management and project designs, that should be accounted for in your policy. Remember, insurance is not a one-size-fits-all proposition. A tailored policy ensures your insurance adequately addresses the unique risks associated with the projects and operations you manage.
- Coverage enhancements
Insurance providers may introduce new coverage options or enhancements over time. By exploring your options, you can identify policies that offer improved or expanded coverage to get better protection against emerging risks.
- Initiates a risk management review
Exploring insurance options prompts a comprehensive review of your business’s risk management practices. Think about what’s changed or will change in your operations to help identify potential liabilities and ensure that your coverage aligns with that risk profile.
- Doing a claims history evaluation
Evaluate your claims history and consider how any claims you may have filed will impact your premium at renewal. Reviewing your previous claims can help identify areas for improvement in risk management practices, and potentially lead to more favourable insurance terms.
- Being aware of the shifting insurance landscape
Just as the construction industry evolves, so too does the insurance landscape. That means new market trends in the insurance world may impact your coverage options and pricing. Staying informed about developments in the insurance industry can ensure you’re making informed decisions based on the latest and projected market conditions.
- Leveraging competition
The competitive nature of the insurance market can work to your advantage. By obtaining multiple quotes from different insurers, contractors create competition among insurers, which may lead to you getting better terms, conditions, and a lower annual premium.
- Tapping into loss prevention strategies
Insurance providers often offer risk management services and loss prevention strategies. Contractors exploring their insurance options can take advantage of these services to gain insights into minimizing risks and improving overall operational safety. Insurers appreciate and recognize these efforts.
- Your contractual requirements
The contracts you sign for construction projects may come with varying insurance requirements. By exploring your insurance options, you can meet specific project needs and contractual obligations and avoid any potential compliance issues of disputes.
- Your relationship with a construction insurance broker
Contractors can leverage their relationship with a licenced business insurance broker to stay informed about new offerings and market trends. A broker can provide valuable insights to help you navigate the complexities of insurance.
Review before you renew
Reviewing your company and its operations, your existing policy that’s coming due for renewal, and assessing your needs for the year ahead can help you save money and ensure you get value for the money you invest in a construction liability insurance policy.
Getting in touch with a licenced business insurance broker to help explore your options can make the process easier and less time-consuming, so you can get a policy and a certificate of insurance quickly and turn your sights to bidding on future projects.
Jon Hogg is a licenced broker and senior team lead, renewals at Zensurance, Canada’s leading source for small business insurance. Get a free quote for your insurance needs by visiting Zensurance.com/DCN.
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