Risk Misclassification: Why Your Carrier Might Be Costing You More

Not all insurance carriers understand the restoration industry — and that can cost you. One of the most common problems we see is risk misclassification.

Many restoration and environmental contractors get lumped into “general construction” categories. On paper, it might look close enough. In practice, it’s not even in the same ballpark.

When your carrier misclassifies your business:

• Premiums go up. You pay more because your work is seen as riskier or broader than it actually is.

• Coverage goes down. Your policy may exclude key services like mold remediation, asbestos handling, or emergency response.

• Claims get messy. If you file a claim that doesn’t align with the classification, denial or long delays are common.

For a restoration contractor, that’s more than an inconvenience — it’s a serious business risk. You need coverage that reflects the work you actually do.

At ARI Brokers, we specialize in helping restoration and environmental companies avoid this trap. Our team knows the nuances of your industry and works only with carriers who do too. That means your policies are classified correctly, your premiums reflect your actual risk, and your coverage will respond when it matters most.

Bottom line: If your carrier doesn’t understand restoration, you’re probably paying too much for too little.

Ready to make sure your business is classified correctly? Contact ARI Brokers today.