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7 Steps Steel Contractors Can Take to Lower Insurance Premiums

Steel contractors, construction companies, and other steel-related businesses can reduce insurance premiums with a better knowledge of the renewal quoting process.

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Steel contractors and other steel-related businesses can achieve savings on insurance premiums with enhanced knowledge of the renewal quoting process. With an understanding of the relationship between brokers and insurance carriers, favorable terms and competitively priced insurance quotes may be attained in the marketplace. Charles Specht, President & CEO of Constructive Risk, provides insight on how to secure the best policies.

Problems Encountered When Gathering Insurance Quotes

One of the problems contractor’s face when obtaining insurance policy renewals is the assumption that the insurance quoting process works like the construction industry.

“Typically, a general contractor or project manager can request bids from multiple subcontractors and receive dozens of quotes. Whether unfortunately or fortunately, the insurance industry does not work this way,” says Specht.

Insurance carriers will only work with one broker per insured. “When a steel contractor allows Broker-A to submit to Carrier-X, Carrier-X will never accept a submission from any other brokers that year on your behalf,” says Specht. Therefore, it is important for contractors to become better informed of the subtleties of the process.

According to Specht, by matching steel-related construction companies with the proper brokers, up to 55% per year on combined annual insurance costs may be achieved.

DATCU steel framing truss

Steel contractors can save up to 55% per year on combined annual insurance costs.

7 Steps to Save Money on Renewal Insurance Quotes

Specht identified the follow steps to save money on insurance quotes:

  1. Thoroughly interview brokers before allowing them to quote an insurance policy renewal
  2. Assign the insurance markets to each broker used
  3. Set strict deadlines upfront on when to expect broker proposals
  4. Require that each broker provides a complete copy of the quote and written confirmation from the insurance carrier for declinations or refusals to quote
  5. Create a cost comparison spreadsheet for all received quotes
  6. Negotiate (important).
  7. Establish a required 12-month timeline of services with the brokers binding coverage

For additional detailed information on these steps, read 7 Things Steel Contractors Can Do To Lower Their Insurance Premiums by Up to 55%.

 

Savings with Cold-Formed Steel Framing

Non-combustible structures, like those built with cold-formed steel (CFS) framing, have a better loss history than combustible wood framing. This often translates into lower costs and broader coverages for many types of construction insurance.

Download the white paper, Insurance Savings with Cold-Formed Steel, to learn how to evaluate insurance related costs of a CFS structure in comparison with wood construction.

 

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