Choosing the right insurance broker is an essential part of making sure that you will get the best service and end up buying the product that suits your needs. However, not everyone in the insurance industry offers a high-value service to tradies and people in construction.
When looking for tradesman insurance, you need to make sure you are talking to a broker who knows the industry and can get you the best deal on the right policy.
A survey by the US Department of Housing and Urban Development's Office of Policy Development and Research looked into the insurance industry for builders and tradesmen to find out what some of their concerns were when dealing with insurance brokers.
They found that if you chose the wrong insurance broker:
- Claims for forms of construction insurance by brokers could be delayed. Many insurance brokers are heavily influenced by a wish to reduce risks and avoid any possibility of large claims.
- You might find that there is not enough concern for the negative long-term impact claims had on reputations. Especially for the construction and tradesmen as an industry for things that may not be the fault of builders.
- Sometimes the insurance broker was difficult to find if there was an issue. Some builders felt that some brokers do not adequately defend builders against excessive claims.
- Timing of coverage could be a problem. There might be a significant time difference between the "occurrence" and "claims made" and what could be claimed for. Again, this was an effort to reduce risk and pay out as little as possible.
- Insurance companies do not sufficiently differentiate between builders and trade contractors. This included builders and tradies who do not understand whether their insurance offered coverage to a trade contractor in the first place.
Finding a insurance broker who understands the trades and building industry and who is an expert in insurance for these businesses is critical to getting the best policies in place to protect you, your business and your workers.