August 2014 - Bradford PA Insurance - Williams Insurance Agency

LICA has shown Excavating Contractors how to earn dividends on their insurance premiums

August 14, 2014 in bradford, Bradford PA, Bradford PA LICA, business owner's insurance, contractor's errors and omissions, insurance, insurance dividends, lower costs on insurance, Pa LICA, united fire group

It is amazing how the government will say that the cost of living has not increased substantially. This is because they do not take into account three of the most expensive consumer products when calculating the rates: food, gas and non-core CPI measures. Instead of calculating the CPI by including home prices, housing costs are calculated by rental rates. For sure, it is complicated. But complicated or not, all contractors know that bids must be low in order to secure contracts and prices for goods and services are increasing. This is quite evident in the cost of fuel which can fluctuate from one week to the next depending on turmoil overseas and natural disasters here at home. A contractor can make an educated bid today but costs may increase next week and the whole project can be in the red.


Pennsylvania has chosen to give back to contractors by allowing insurance dividends to be paid on contractors’ policies. Some states have already had this program in place. It is not unusual to see a dividend of 16% and this is real money that the contractor can add back to the bottom line.


What this also means is that an excavating contractor can actually get the insurance he needs rather than what he can afford at one given time. We all know that general liability insurance is mandatory across the board. Some GC’s and property owners require a minimum amount of liability and the excavating contractor who has won the bid has just so much time to provide proof of insurance. If there is an excavating contractor who has jobs going simultaneously, it is advantageous to have a policy that covers all new work as it comes in – rather than having to write one policy for each job.


There are coverages that an excavating contractor may not know is available or that his insurance agent has not been proactive in describing. PALICA has a link on their website shows the benefits of becoming a member in addition to the dividend program and lower costs on insurance. It also give you a link to an agent with United Fire Group which underwrites every type of insurance for the excavating contractor.


Samples of the additional coverages that are available include:


Business Owner’s Insurance: For the excavating contractor this combines property, liability and crime protection. It includes a variety of enhancements that offer protection for many aspects of your business such as data processing, security breach and identity theft services, employee dishonesty, money and securities. Equipment breakdown covers the cost to repair or replace mechanical, electrical or pressure systems that suffer a breakdown.


Contractor’s Errors and Omissions: Customers depend on their jobs being completed on time and on budget. But, no matter how careful you are, mistakes can happen. You need the coverage to protect your business from losses caused by defective materials or faulty workmanship. These types of losses can have a devastating impact on your production, profitability and reputation.

The (E&O) offers unique coverage to protect you against four important coverage exclusions in a standard general liability policy: Product Exclusion, Work Exclusion, Professional Liability and Product Recall Exclusion.

Big insurance coverage for small companies

August 2, 2014 in broad liability coverage, broad liability coverage bradford pa, equipment breakdown coverage, hired and non-owned vehicles, insurance, united fire group

The term Excavating Contractor is a big, important term. The company deals with big jobs, big equipment, and the potential for just as big a mistake or accident as the giant companies. However, many excavating contractors are what you might consider a ‘one man band.’ This does not mean that one man does all the work – far from it! The small business owner will find a temporary staff of talented workers, probably leases all the equipment needed for a specific job and maybe even outsources all human resource functions. He may be a sole proprietor or LLC.


Just because you run a small business does not mean you do not need the same types and limits of insurance as the giants. This new program has a specialized plan just for this personal called the Small Contractor Program. If you are a member of PALICA, you will see a link to the program on their website.


Our new small contractor program is specifically designed for contractors who want broad liability coverage at a competitive price. It also offers important optional coverages to meet the unique needs of the excavating contractor.


Every business owner knows he needs general liability insurance. All contractors and property owners will want proof of insurance prior to the beginning of any excavating. In addition to general liability the contractor can have a Care Custody and Control Property Damage addition written into the policy. This added protection protects against damage to property in your possession for which you are legally liable. Claims are covered and are paid under this clause.


A Contractor’s Property Plus addition is something to really consider. It provides increased coverage for fire department service charge, pollution cleanup, newly acquired property, valuable papers, signs, outdoor property, accounts receivable, fire extinguisher recharge, data processing, and lock replacement.


One of the most valuable customized coverages for the small contractor is Equipment Breakdown coverage. This is not an insurance policy like auto insurance that covers accidents. You can enhance your policy to cover the cost to repair or replace mechanical, electrical or pressure systems that suffer a breakdown. Some costs your business may accrue due to a piece of equipment breaking down are also covered. These costs include coverage for business income, data restoration, service interruption, demolition and increased costs of construction, refrigerant contamination and perishable goods.


If the small contractor does not use his own vehicle in the day-to-day operation of the company, he can get coverage for Hired and Non-Owned Vehicles. This will cover any borrowed vehicles and even those that have been hired.


PALICA assists members with important information so that the small business owner can make an educated decision. Membership is not exclusive to the large companies only. Excavating contractors have three levels of membership in Pennsylvania and each has its own yearly dues. There is an Active Contractor Member with membership dates of November 1 through October 31 of each year. There is a less costly membership for a Company Associate Member. This is reserved for those who sell materials, services and equipment to contract members. And there is also a Supporting Member for those who are interested in the field. This membership has no voting privileges.