Construction Insurance Myths
There are many myths about construction insurance in Texas. The myths may prevent construction companies in Texas from obtaining the protection needed to protect their assets. In order to understand the nature of these myths, one must first become familiar with the various types of general contractor insurance Texas. The purpose of this article is to provide an overview of the different types of general contractor insurance and the myths that surround them.
One of the most common myths is that it only covers natural disasters. This misconception is not true. Construction insurance provides coverage for a wide range of events that can negatively impact a construction project. One example would be a hurricane that causes extensive damage to buildings or structures. Other examples of events that may result in misperceptions are fires caused by electrical malfunction or vandalism.
Another common myth is that general contractor insurance in Texas does not cover liability. There are some lenders who do not offer liability coverage. This can be confusing for brokers trying to obtain insurance in Texas for their clients. Two examples of lenders who may require liability coverage include banks and real estate brokers. In September of 2021, a Texas law was passed that will require banks to provide at least $1 million liability coverage for all customers.
A third common myth is that a broker's attempts to get a higher deductible through a working relationship with a miller insurance agency could result in a lower rate. On the contrary, brokers can actually save money by seeking out lower rates through a miller insurance agency. In some cases, a broker's willingness to work with a miller insurance agency could lead to discounts of up to 50% on premiums. Brokers working with a smaller company may also be eligible for discounts based on their location. For example, if brokers live in states such as texas, they may qualify for a discount on their premium rates.
A fourth common myth is that the best way to find a quality miller insurance product is to purchase directly from a miller insurance agency. However, the internet has made it possible to purchase quality insurance products online at affordable prices. Several websites that sell both general insurance products as well as specialty insurance products have been created just for this purpose. By purchasing your insurance products online you can cut out the middleman and save yourself some money.
A fifth popular myth concerns the scheduling of projects. Many brokers believe that it is better to allow the client to manage their own projects, rather than allow a contractor to do so. While some brokers may not always have a preference, most understand that there are benefits to managing a project personally. Projects that are managed efficiently will have fewer interruptions due to miscommunication or unforeseen problems. Projects that are more time-sensitive often run into problems when scheduling has to be done around holiday seasons, major holidays, and other major celebratory events.
An important myth surrounding the construction industry is that it is better to work with only one insurance agency. Many clients want to know that if one broker is chosen they know that the insurance policy will be fair and competitively priced. However, working with more than one insurance agency actually allows the potential client to negotiate rates and discounts with multiple brokers that may otherwise never agree on a rate.
One final myth surrounds the importance of having a current construction insurance policy. Some people think that even if they do not own a construction business they should still maintain an insurance policy in case something happens. While it is true that you may not need to have a construction insurance policy every year, there are many situations where an insurance policy becomes vital. When purchasing materials and labor, workers compensation, or other insurance policies, clients should shop around for a carrier who offers competitive rates and sufficient coverage. Even if the occasional policy does not seem like a necessity, the value of a good policy can be well worth the nominal cost.
NEED A GENERAL CONTRACTOR INSURANCE?
CALL US NOW (702) 832-0220
Comments
Post a Comment