Insurance is an important part of any business. Successful business owners know how to set up an insurance policy that, not only ensures that their employees will be properly covered in the event of an accident or medical need.
Protecting all of your company’s assets can be expensive, especially in the roofing industry. That is why we have come up with six ways for you to lower your company’s insurance costs without putting your employees or assets at risk of either lowering or removing benefits and coverage.
Classify your employees accurately
When a roofing company applies for an insurance quote, it is asked for a list of the people they employ as well as the their responsibilities for the upcoming year. This is just an estimate, the more important issue is calculating your correct rate based the individual employee’s classification.
A roofing company is considered one of the riskiest companies to ensure, so typically rates are already going to be on the high side. That is why we recommend that you create job responsibilities for each of your employees.
Any employee whose daily tasks require them to remain inside the building should be categorized as clerical. This classification is normally considered one of the lower rated risks for insurance.
A good rule of thumb for any employee who spends most of their day working behind a desk, handling the office administration, should be categorized as a clerical employee, not as a roofer.
Another typically missed classification has to do with salespeople vs. roofers. If an employee’s primary responsibility is as a salesperson, make sure you classify them specifically as an outdoor salesperson (there is a difference between inside and outside salespeople).
The classification of roofer should only be given to employees who install roofs, and who spend over 50% of their day on a roof. A Foreman should be classified as such, not as a roofer.
Assigning your employees the proper job classifications can greatly reduce your insurance policy payments.
Safety procedures in place
Having in place safety procedures will reduce your insurance rates. Your company is rated on how risky it is in your given market. By proving you take your employees safety seriously, with the proper documentation, will reduce your rates accordingly.
If you can prove that you not only have safety procedures implemented, but that you also strictly enforce them, the insurance company will lower your risk rating.
Maintain a healthy work environment
The overall health of your employees is a relatively new premium reduction. If you can prove that your company offers a wellness program, (gym membership, non-smoking program or an exercise incentive) to your employees, you may be eligible or an insurance discount.
Purchase insurance direct, not through a broker
Many companies purchase their insurance policy through a broker to make sure they have the proper coverage. The problem with this is brokers charge a lot for their services.
If you do your research and feel confident you know what type of coverage you need, you can save a lot of money on your policy by purchasing it direct from an insurance carrier.
Increase your deductible
Another great way to lower your insurance policy rates without reducing or removing coverage is to raise your deductible. This is a great idea for a company that has had a lower number of claims in the past, and are confident they will be able to easily cover the deductible if needed.
Insurance companies usually offer identical coverage, so don’t hesitate to shop around for the best price when looking for a policy. Just make sure, when comparing insurance carriers that they offer identical coverage and only the coverage you need.
There is no way around it, purchasing insurance for your roofing company will be expensive, but with some research, and following these six helpful tips, you can greatly lower your costs while still receiving the coverage you need.