With the slowdown in the economy it’s hard for a contractor to stay in business, but that doesn’t mean you should skimp on business insurance coverage. Look we know with the price of gas, foreclosures, and no new houses being built means a major slowdown in growth and less of a need for contractors. So what’s the 1st thing you do to save money?
Lay-off all the highest paid employees, hire “new guy” at half the price and retrain him to do the job. After that you lower you prices and rates on whatever job comes along just to break even. Lowering your insurance premiums might be a bad idea at this point. If you are using new or low skilled laborers they might make mistakes, and those mistakes can ruin a business, a business that you have spent a lifetime building up.
We understand that if it comes between hiring “new guy” or, paying an insurance premium, most of us pick the “new guy”. I mean he is the one that is going to make money, and insurance falls into the “Just in case” loophole, and if the “new guy” does a good job and nothing goes wrong “all’s good” right?
Wrong, you just dodged a bullet “new guy” is a liability he is untested and still learning the job. “New guy” messes up measurements, and hides the mess up from you until the deck you just built falls over and the state inspector comes along and nails you with a “This was not built to code”. Then the client’s lawyer shows up at you business and serves you a lawsuit for punitive damages, rebuilding costs and state fines. Or “new guy” is a bit clumsy and absent minded he doesn’t pay attention and falls of the scaffolding and tumbles two stories breaking his arm, and your profit.
I know what you’re thinking, how can I pay the insurance bill if I can’t hire “new guy “at half the price of “old guy”. I can’t answer that question right now, because I don’t know the details of your business. Your best bet is to call a business insurance agency that specializes in your field. Talk to them, tell them your concerns, and remember they are a business too and need your business just as bad as you do. A good insurance agency specializing in contractors knows all the tips and tricks to the trade, and they will find a way to lower your insurance premiums without lowering coverage, so you don’t have to worry about …“new guy”.