What Factors Affect the Price of Civil Contracting Insurance?
As a civil contractor, it is essential to obtain an insurance cover that will cover for damages that occur in the course of your operations. Civil contracting projects are quite complex, and a lot can go wrong as you go about your daily activities. But you may be wondering how much you will pay for insurance and what the insurer will consider when calculating your premiums. Just like other forms of insurance, such as auto, homeowners and medical policies, various factors will determine the price of civil contracting insurance. Remember, the cost will vary from one individual to another. Below are some of the things that your insurer will evaluate before giving you a policy plan.
Nature of your work
Civil contractors are tasked with overseeing the technical work on construction sites. This kind of work exposes contractors to various risks as they are always present on the site. Your insurer will evaluate the nature of your work when calculating your policy price. What kind of civil contracting work are you usually involved in? Do you supervise the construction of residential or commercial buildings? Are you involved in public works civil contracting? The broader the scope of your job, the more risk you are exposed to, and this will mean that you will require a more comprehensive cover than if you only worked on residential projects.
How many civil contracting claims have you made in the past? Your new insurer will consider this when calculating your new premiums. So for example, if you have made multiple claims after suffering injuries on construction sites, you are likely to pay more than a contractor who has not yet made any claims. That's because insurance companies consider you as a high-risk client. In this case, you will be required to pay more to cover your level of risk.
Your work location is a critical factor when it comes to most types of insurance. Insurance companies in some states generally charge more for insurance as compared to others. For example, when getting auto insurance in New South Wales, you are likely to pay more as compared to another person taking the same policy in Queensland. These regional differences apply to civil contracting insurance as well. However, since a civil contractor can work across various states as long as they have the required licences and documentation, you can inquire with your insurer before accepting a policy.
Insurance is essential as it will cover medical expenses, liability and any damages incurred as you go about civil contracting work. Compare quotes from different companies before settling for one.