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Restoration Contractors have complicated risks that require specialized insurance coverages.


Obtaining the right insurance coverage for restoration contractors can be tough. The coverages are complicated, the risks are unique, and very few insurance professionals understand the industry.


Knowing whether your client is protected can be a nightmare as most restoration contractors will have at least 5-8 insurance policies through multiple insurance agencies.


Below we have compiled a few insurance questions to help Brokering agents and restoration contractors understand their unique insurance risks. As you glance through the questions, if any of them read like a foreign language or you have no idea what your policy provides, we recommend that you reach out to ARI to assist you with a policy review.

  • Combining Policies
    There are specialty insurance carriers that have put together package policies that will include all of the necessary coverages, including General Liability, Pollution Liability, Bailees, Professional Liability, and other coverages under one policy. Tip: Find a broker who specializes in restoration contractors so you can be certain you are aware of new insurance programs that may be available to your clients company.
  • Written Policies and Procedures
    Written policies and procedures can help reduce premiums as well. Knowing how your clients company will respond to various situations with written documentation is a vital, this is an often over-looked aspect that will lower premiums. Also, documented training procedures will help the underwriter feel comfortable with what employees are doing on the job and how they are being trained. Most Carries with require IICRC Certification. Tip: Provide your broker with a copy of their certification and procedures. This will allow the Underwriter to offer the most competitive pricing.
  • Staff Qualifications
    Providing written resumes of the owners and key employees is another way to save money. Your clients employees have the know-how and experience; however, the underwriter isn’t aware of their expertise. The ability to show management experience within the company will make insurance companies more comfortable with the risk. Consistently showing an underwriter that they have qualified individuals in the top positions will quickly translate into premium savings. Tip: Provide written resumes showing employee/owners management experience to your broker.
  • Risk Management
    Every company takes steps to avoid claims; however, very few of them document their procedures to demonstrate what they are specifically doing to prevent them. The trick is to make sure those procedures are recorded in a clear, concise fashion. This will help put your clients company in a better light. Your broker can help you discover additional areas where they have taken steps to avoid risk and didn’t even realize it. Tip: Work with a broker that has a specialty and expertise in your industry that can point out the potential risks your company faces and the proper way to avoid those risks.
  • Claims-Free
    Providing a claims history showing that they have been without claims will greatly assist in decreasing your premiums. Especially for companies that have been in business for more than 5 years. Most companies are going to have claims, and your ability to provide a written explanation of the claim along with the company’s response to avoid future claims is just as important. Tip: Provide a claims history and written explanation of any prior claims.
  • Know Your Property Values
    Properly insuring property is of vital importance, and is often a coverage we see overlooked by insurance agents. Many companies have inaccurate coverage limits for property. Taking a full inventory of property will assist them in two ways: 1. It will help avoid over-insuring the property and overpaying on premiums. 2. It will also help avoid underinsuring property, which could result in a coinsurance penalty for the Insured. Tip: Take an inventory of the property owned by the company and provide it to your broker.
  • Understand Premium Basis
    Knowing how a premium is calculated can help save as well. Typical liability premiums are based upon 1 of 4 things: Gross Revenue, Gross Payroll, Number of Employees, or Square Footage. Within each one of those areas, however, there are often portions that do not need to be included within the premium calculation. As you may suspect, the insurance company will seldom disclose where those savings can be found. In addition, you will want to utilize a non-auditable combined form when available. Unless you are using a broker that specializes in your type of risk, it can be very difficult to find out where you may have some hidden savings. Tip: Use a broker that specializes in restoration contractors.
  • Protective Safeguards
    Installation and maintenance of protective safeguards such as sprinkler systems, fire alarms, and burglar alarms will also decrease premiums, especially in buildings with high values or high occupancy. In fact, the installation of a burglar alarm and fire suppression system can help decrease property premiums. Tip: Work with a qualified loss control representative or broker that will help guide you in the purchase of the right type of safeguard for the building.


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