At Dunn Solutions, we’re dedicated to providing trusted information and advice to support trade contractors and craftspeople throughout the greater Seattle area. While we often share insight on quality materials and building techniques, we also understand that there are countless other facets of your business required to keep things running smoothly—like insurance. 

From the basics of what contractor liability insurance is and how to read your policy to understanding policy exclusions and Washington laws that impact contractor liability insurance, there are a lot of factors to consider for your business. That’s why, for our Contractor Liability Insurance Series, we’re speaking to Shelli Lucus-Kennedy, owner and senior risk manager of Insurance Risk Services. With more than 40 years in insurance and risk management and a focus on the construction industry, Shelli is a wealth of knowledge, due to her extensive experience and customer-driven approach. 

According to Shelli, obtaining affordable contractor insurance rates might be as easy as “tooting your own horn.” Have you implemented processes to lower risk for your business? Do your contractors have special training or certifications? Whether you’re working on a new safety plan or your business has received an industry accolade, selling yourself well to an insurance underwriter matters. In this episode, Shelli shares factors that impact your rate and how you can put your best foot forward to get the best rate possible.

Watch our discussion in the video above or keep reading to get the highlights.

Tip 1: Understand how contractor insurance rates are calculated

When looking for contractor insurance rates, it’s important to remember that underwriters see your business as a stack of papers with no personal connection. While some factors are out of your control—experience credit or loss history—up to 40 percent can be judgment factors at the discretion of the carrier. It’s crucial to provide your agent with business details and documentation so they’re equipped to market you well. 

Tip 2: Highlight what sets your business apart

If you’re serious about your business, you tend to be safer, smarter, and naturally looking for ways to minimize your risk. What are you doing better than others? 

Shelli recommends highlighting things like:

  • Creating and implementing new safety plans, quality control programs, and employee retention programs
  • Working with a Risk Manager to keep your contracts up-to-date, implementing subcontractor controls, fleet programs, warranties, and other techniques that reduce risk
  • Highlighting management or employees with specific certifications or degrees, emphasizing education and rewarding completion
  • Receiving recognition as a leader in a particular area of work
  • Awards, articles, industry involvement, and volunteer work

All documentation of risk mitigation can factor into a lower rate. Even accolades, awards, or an association leadership role can also be significant as they show recognition within the industry and what you’re doing well. Industry impact adds credibility and improves how carriers view your business.

Tip 3: Don’t hide your mistakes 

Carriers look at everything—LinkedIn, Yelp, Google, your website—including a master system similar to a credit report that has information such as non-payment cancellations and claims history. 

It’s best to share problems with your agent up front because they will be found. This ensures your agent can prepare the paperwork to tell the story in the best possible way. What are you doing differently to avoid this issue in the future? Learning from mistakes and introducing steps to avoid a repeat can show your commitment to lowering risk potential. 

Do agents have the ability to discount a policy?  

Discounts can only be applied by the underwriter while agents are only able to negotiate and pass it through. However, the agent is your biggest advocate. They can suggest creative solutions to balance out what carriers see as a big risk and shop your business around to get the lowest rate possible.

Interested in other ways to protect your business? Don’t miss the other helpful episodes in our Contractor Liability Series, covering topics like what contractor liability covers and how to read a contractor liability insurance policy.