Building under construction insurance can be a deal breaker. Potential clients are fussy about both your reputation and your contractor insurance. Does your business have a good reputation and the right insurance?
From your client’s perspective
When a potential client is finding the right contractor for their project, these are some of the deciding factors:
The contractor’s reputation
Just like anyone shopping around for a service or product, your potential client is likely to go by recommendations and reviews. This kind of silent marketing is called word of mouth. It is by far the most powerful form of marketing.
Word of mouth doesn’t just refer to recommendations from friends, family and peers. It also includes online reviews. Does your building company have 5 star reviews on your social media, website or third party sites?
The contractor’s price
An inexperienced contractor might think that the lowest quote wins every time. You will be tempted to lower your rates to get the job, even if this erodes into any profits you may make. This is an important strategy in the lean times, where any job is better than no job. For example, when you are starting out in the industry and have to build a reputation.
A more experienced contractor with an established reputation for quality work is less likely to do this. For many clients, it’s worth paying more if the contractor is going to solve all problems during the project. Do you have the financial resources to keep a project going even when materials are stolen? (Spoiler: You will with building under construction insurance.)
The contractor’s insurance
In most states the law requires that you invest in General Liability insurance and Workers Compensation. In fact, you are unlikely to be allowed onto a commercial site without these policies. This is because clients want to be sure that they won’t suffer financial loss if you damage their property or your work is the cause of third party bodily injury.
This coverage does 3 important things. Firstly, it may get you the job. Secondly, it protects your client’s investment. Thirdly, it protects your business from third party claims. But, does this coverage do enough to protect your business reputation? This is where building under construction insurance comes in.
The high price of reputational damage
Your reputation will be damaged by your inability to complete projects on time or, worse still, not at all. This is out of your control if you have not prepared financially. What if building material is stolen from temporary storage or in transit to the job site? Will you be able to replace it quickly and get on with the job?
Building under construction insurance is called Builder’s Risk Insurance. It provides coverage for expensive materials and equipment that will be used in the course of the project. With Builder’s Risk Insurance these items are covered while they are being stored or in transit to the job-site.
Building Under Construction Insurance
Your good reputation is one of your most valuable assets. Protect it by investing in building under construction insurance from Contractors Liability. We have a great reputation for taking care of our clients. Speak with one of our agents at 866-225-1950.