- March 20, 2016
- Posted by: Richard S. McIntosh
- Category: Business Insurance
Buying Minnesota Contractors General Liability Insurance
Contractors looking to buy or obtain quotes on general liability insurance in Minnesota should understand a few of the basics first.
What is general liability insurance? It is basically bodily injury, property damage, medical payments, defense costs, personal & advertising injury coverage.
Policies vary so it is important to know what can or could be excluded. Be sure to explain to your experienced contractor’s insurance agent exactly what you do.
Make sure the financial rating of the company is A- or better. A solid insurance company is important.
Check the company and MN insurance agency you getting quotes from with the Minnesota Better Business Bureau. Check our Minnesota contractor’s insurance agencies A+ rating with the BBB: http://www.bbb.org/minnesota/business-reviews/insurance-companies/insuring-minnesota-in-lakeville-mn-96034468#sealclick
Choosing the wrong agent or broker can be a mistake. You might think this sounds strange, but if your agent does not work on Minnesota contractor insurance on a daily basis, he/she might be out of touch with a market that changes day to day. An experienced contractor’s insurance agent knows what you need to get your Minnesota contractor’s license. One of our plumbing clients told me they called 8 or 9 agents over a couple months and we were the only ones that knew what we were talking about.
Obtain several MN contractor insurance quotes. Using an agent that only offers a contractor insurance quote with one company might not have your best interests at heart. I believe using an independent insurance agency (like us) allows you to make one call and receive multiple quotes.
Buy insurance from an admitted carrier if at all possible. Non-admitted carriers charge fees and taxes on top of premiums. Plus admitted carriers generally have better contracts with fewer exclusions.
If you have requirements from a general contractor you will be working with, just forward that to your agent rather than guessing at what you might need. Most contractors and many agents for that matter do not understand words such as certificate holder, additional insured, waiver of subrogation, transfer of rights, primary and non-contributory wording, products and completed operations…
If your business requires a bond, make sure your agent handles that as it makes it easier to have everything in one place. Minnesota Contractors might need: Minnesota Mechanical Contractor Bond, Minnesota Master Plumber Bond, Minnesota Electrical Minnesota Bond, Minnesota Technology Systems Bond, Minnesota Water Conditioning Bond, Janitorial Bond, Surety Bond, License Bond, Performance Bond, Bid Bond
Some companies and agencies charge fees on accounts. On smaller contractor accounts this a very common as 50% of the policies cancel during the first year. Just make sure the fees are disclosed and including in your quote so that you can make an informed decision.
Be sure to ask about payment options. Many times paying in full can offer a premium savings. Even automatic monthly checking can cut down or eliminate installment fees.
Ask about the agencies response time on issuing certificates. Most of our certificates are issued within minutes or same day as long as we have the name, address and a way to get it there such as a fax or email address.
We insure all types of Minnesota contractors:
• Appliance Service
• Carpet Cleaning
• Flooring / Carpet
• General Contractor
• Heating / Air / HVAC
• Interior Decorator
• Lawn Service
• Snow Removal / Plowing
• Sprinkler / Irrigation
• Tile & Stone
• All Other Classes
I hope that you find this information about buying Minnesota Contractors General Liability Insurance helpful. Our motto is “if you help people, the business will come”.
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