Month: July 2022

Construction is a high-risk industry. Many things can go wrong from simple theft to sudden catastrophic storms. Contractors need to purchase insurance to protect their business assets from unforeseen occurrences. However, with the wide range of business insurance policies on the market, it can be tough for contractors to choose the ones that are truly designed for their trade. Here are some essential types of insurance that contractors should consider.

General Liability

General liability insurance protects your business from liability in the event of an unlucky incident, thus it is sometimes referred to as business liability insurance or commercial liability insurance. General liability insurance comes into play when a third-party files a lawsuit for bodily injury or property damage against your operation. Any business that meets with clients in person or has access to a customer’s property should purchase general liability insurance to protect its assets. In addition, many established clients will only work with contractors that have general liability insurance.

Workers’ Compensation

Accidents can happen even in the safest workplaces. This is why workers’ compensation insurance is required by law in most states in the US. This insurance covers the medical costs and loss of income incurred by your employees if they get ill, injured, or become deceased due to an accident at the workplace. Companies are required to purchase workers’ compensation even if their employees have health insurance. Failure to do so can lead to fines or penalties from the state government.

Your workers are an important resource that deserve protection. But workers’ compensation is not only beneficial for employees. With a team member down, your business will have to pay for a temporary worker and struggle to maintain normal productivity. Insurance takes your injured employee’s medical costs and wages out of that equation so you have less to worry about. Furthermore, workers’ compensation insurance protects you from financial losses and liabilities if the accident results in a lawsuit.

Commercial Vehicles

Vehicles are central to a building business. Whether you are transporting employees, supplies, or equipment, a vehicle becomes a liability once you use it for work. You can suffer significant financial losses if a work vehicle is involved in an accident or gets damaged. Therefore, your business should consider commercial auto policies that cover medical bills, property damage, and legal fees. If your company leases vehicles or uses vehicle financing, you should also add gap coverage. This covers the difference between the actual value of your vehicle during the time of the accident and the outstanding sum that you owe.

Builder’s Risk

Construction is a risky business. Numerous events such as fire, inclement weather, vandalism, and theft can cause significant damage to your hard work before your building project is completed. With a builder’s risk policy, you are covered for a variety of losses including delayed completion, fire damage, structural damage, and loss of rental income. Some policies will also cover the cost of cleaning up the site. Builder’s risk policies are not standardized, so you should consult a contractor insurance broker for a comparison of the different policies available.

Excess Liability Insurance

Contractors who work on projects that are valued at over a million dollars need to get excess liability insurance to extend their coverage over the underlying liability limits. For example, if a contractor has a general liability policy that covers up to a million dollars for a project that is valued at two million, an on-site fire could leave them out of pocket for a million dollars even after insurance has been paid out. Excess liability is added in million-dollar increments and is an expected requirement for high-value projects.

Tools and Equipment

If you have company property in your vehicle at the time of an accident, it will not be covered by a commercial auto insurance policy. When your essential tools or equipment are damaged, you have to pay expensive replacement costs and still face financial losses from incurred delays. Therefore, contractors with high-value movable property need tools and equipment coverage to protect their assets from accidents, theft, or loss. Tools and equipment insurance covers tools in transit, mobile equipment such as forklifts, and computer equipment and data. You can also add additional cover for leased or borrowed assets and rental costs.

Specialist Contractors

On top of the standard contractor policies, there are also policies for specialized contractors.

For instance, roofing contractors face more challenges and higher risks than ordinary builders. Many occurrences can affect roofing operations such as water damage from heavy rain, fire damage from hot tar, and damages that result from alleged negligence during construction. Hence, roofing contractors need specific coverage and endorsements to protect their business assets from heavy financial losses.

Similarly, fire protection contractors require unique insurance coverage and endorsements. As they deal with the protection of lives, fire protection contractors can face liabilities that amount to hundreds of thousands or even millions of dollars. Coverage for fire protection contractors may include general liability, professional liability, waiver of subrogation, property damage, pollution liability, and stop-gap coverage.

Insurance is a necessity for contractors. If you are still unsure about which policies are most beneficial for your business, speak to a contractor insurance broker for expert advice and recommendations.

Having an idea for a startup business probably fills you with joy. Starting a new business is always an adventure, and it’s especially exciting when you have a great idea. But don’t let the initial excitement make you forget the basics. If you’re serious about launching a startup company, you’ll want to create one that lasts. Here are the key considerations you need to think about to develop a business that will stand the test of time.

The term ‘startup’ is used often these days, and it’s seen a trendy thing. Many people are inspired by the thought of creating a new and exciting business. A startup business is defined as a company or organization in its early stages, typically characterized by high uncertainty and risk. A startup’s success depends on its ability to solve a problem that people care about. But you don’t necessarily need to have a new invention or innovation to be have your own startup. Sometimes it’s the simplest ideas that will gain the most traction and success. Anyone considering launching a startup business should make the most of all the free startup resources out there to understand what it takes.

Ultimately, there are four key considerations for launching a successful startup business: product, team, business model, and funding. Here’s a closer look at each of these elements, and what you need to think about for each element to ensure you are creating a business that has the potential to last.

Product or Service

Starting with a great product is essential for any startup business. You need to have a strong offering that meets a need in the market and delivers value to your customers. Put the time and effort in to find a product or service that delivers something really well, or is truly innovative. Take inspiration from product design winners to see what works for others. You can find out more by talking to your target market and getting feedback early on.

Creating a great product is only part of the equation, however. You also need to think about how you’re going to get it in front of people who will want to buy it. This is where marketing comes in. This is something you should already be thinking about at the product stage. Marketing is vital for any business, but especially important for startups who are trying to get noticed and build an audience from scratch.

Team

It’s also important to have a great team in place to support your product. The right team will help you execute on your vision and bring your product to life. A good team will also be able to support you as you grow and scale your business. Assembling a strong team is essential for any startup, so take the time to find the right people. This includes finding a co-founder if you don’t have one already.

A co-founder can be vital for a startup business. They can provide the complementary skills and expertise that you might not have. They can also help with decision making, offer a different perspective, and provide support during difficult times. If you’re serious about launching a startup, it’s worth taking the time to find a great co-founder.

Other team members you’ll want to find early on depend on the nature of your business. However, you may need someone with product development expertise, someone with technical abilities, and someone with sales and marketing experience. It’s important to have a good balance of skills on your team, so take the time to find the right people to power your brand.

Business Model

Your business model is how your startup will make money. There are a lot of different ways to do this, so it’s important to choose the one that makes the most sense for your particular product or service. There are four main types of business models: subscription, transaction, marketplace, and advertising.

The subscription model is where customers pay a recurring fee to access your product or service. This could be on a monthly or yearly basis. The transaction model is where customers pay a one-time fee to purchase your product or service. The marketplace model is where you facilitate transactions between buyers and sellers. And the advertising model is where you make money by selling advertising space on your platform.

Once you’ve decided on a business model, you need to think about how you’re going to execute it. This includes figuring out your pricing, what channels you’re going to sell through, and how you’re going to reach your target market. All of these factors will play a role in your business model, so it’s important to have a clear plan for how everything will work together.

Funding

Finally, you need to think about funding. This is often one of the most difficult parts of launching a startup business. You need to have enough money to get your business off the ground and support yourself and your team until you’re generating revenue.

There are a few different ways to fund a startup business. You can use your own savings, take out loans, or raise money from investors. Each option has its own set of pros and cons, so it’s important to choose the one that’s right for you.

In particular, you should look into the pros and cons of loans versus investors. A loan will give you more control over your business, but it will also require you to make regular payments. An investor, on the other hand, will take an equity stake in your company, but they will also provide you with the capital you need to get started. Sometimes investors come with specific business expertise that can also positively benefit the startup.

There are a lot of different factors to consider when launching a startup business. However, if you take the time to plan and prepare, you can increase your chances of success.