Welcome To:
A Contractor’s Guide to Protecting Your Business Without Wasting Money.
🎯 Class Objective
To help contractors understand the different types of business insurance, how to evaluate what coverage is truly needed, and how to avoid paying for policies or premiums that don’t align with their actual business risks.
📘 Lesson Summary
Business insurance is essential, but many contractors either buy too little or pay for too much. This class helps you identify which policies protect your business, clients, and assets — and which ones may be unnecessary. You’ll learn how to assess your risks, compare insurance providers, and build a smart coverage plan that grows with your business.
Video Explanation
Before shopping for quotes, understand what each type of insurance covers — and which are required by law or contract.
Action Items:
Review and document the five most common contractor policies:
General Liability Insurance – covers property damage and injury claims.
Workers’ Compensation – protects employees if they’re injured on the job.
Commercial Auto – covers vehicles used for business purposes.
Tools & Equipment Coverage – protects your gear from theft or damage.
Professional Liability (E&O) – protects against design or advice-related claims.
Check state licensing requirements to confirm which coverages are mandatory.
Make a list of which types apply to your business and which do not.
List your top five potential business risks (e.g., property damage, theft, injury, design error, vehicle accident).
Match each risk to the type of policy that covers it.
Remove any policy that doesn’t align with your business model.
Ask your broker to tailor limits and deductibles based on project size and location.
Get quotes from at least three insurance providers specializing in contractors.
Request each quote include coverage limits, deductibles, and exclusions in writing.
Ask about “audit-based policies” that adjust to your actual payroll or revenue.
Use an insurance comparison spreadsheet to track differences before deciding.
Bundle multiple policies with one provider to qualify for discounts.
Increase deductibles slightly to reduce monthly premiums.
Review your annual payroll and revenue before renewal — overestimating inflates premiums.
Reassess coverage yearly as your business grows or shifts.
Don’t buy “one-size-fits-all” insurance bundles that include unnecessary coverage.
Avoid letting policies auto-renew without reviewing updated business details.
Never underestimate payroll or misclassify employees — it can cause audit penalties.
Keep digital copies of all insurance certificates, policy numbers, and expiration dates in your Contractor Checklist System.
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Identify which policies your business actually needs.
Get three quotes and compare deductibles, limits, and exclusions.
Reassess risks annually and adjust coverage accordingly.
Bundle policies for discounts but avoid over-insuring.
Store all insurance documentation inside your Contractor Checklist System for compliance tracking.
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