The construction industry is laden with complexities, particularly when it comes to insurance. You might think insurance is solely about keeping premiums low, but the value of working with an adept broker specialized in construction offers much more.
Navigating Certificate of Insurance Requirements
Firstly, let’s talk about the challenges many face with insurance requirements, notably, the certificates of insurance. Often, generic insurance requirements are dispatched to all subcontractors. These can sometimes demand an exorbitant amount of coverage, like an umbrella insurance of $20 million, which might not align with the specific tasks a subcontractor is handling. Essentially, these blanket requirements don’t always fit every subcontractor’s scope of work.
However, with the guidance of an experienced construction broker, subcontractors can often have many of these misfit requirements waived. The broker liaises with the main contractor, ensuring that insurance requirements are tailored to the specific scope of work, ensuring fairness and accuracy.
Ensuring Correct Insurance Audits
Another crucial aspect to consider is insurance audits, especially workers’ compensation and liability insurance. Did you know that a staggering 70% of workers’ comp audits are incorrect? This is mainly because construction companies often fail to provide the necessary documentation, leading to an inflated bill. In fact, a majority of these audits are overpaid, resulting in a financial drain.
An expert broker plays a pivotal role here, guiding companies through these audits. They help in ensuring that only the rightful premium is paid by making certain the right documentation is presented and the audit process is accurately followed.
Comprehensive Support for All Insurance Needs
A specialized broker isn’t just about managing audits and insurance requirements. They offer platforms to handle certificates of insurance, which become indispensable during audits. Furthermore, when presented with insurance requirements for specific jobs, an experienced broker can instantly gauge if they’re reasonable. If they aren’t, they possess the know-how to request waivers for certain stipulations.
In summary, partnering with a proficient construction broker is akin to having a trusted ally, guiding you through the labyrinth of insurance requirements, audits, and other complexities. It’s not just about saving money, but also about ensuring that every insurance aspect of your business is accurate and fair.
Thank you for taking the time to read this. For more insights, do check out my other videos. Should you have queries on this topic, don’t hesitate to reach out via email or contact. Your peace of mind in construction matters is just a broker away!