In this episode of the Rocket Roof Show, we have our second discussion with Louis Rodriguez. We’re here to be a resource on where to go for commercial roofing tips and growth. Louis has been in the business since 2004 and is here to share his knowledge with us by talking about getting insurance, claims, and liability.
WATCH EPISODE ON YOUTUBE
https://www.youtube.com/watch?v=QdPFheptb2o
SUBSCRIBE VIA YOUR FAVORITE PODCAST DIRECTORY
http://www.buzzsprout.com/75529
For those starting out, whether commercial or residential, most are baffled with how to get good insurance coverage and what is required. Our first tip is that it will serve you well to speak to a few insurance agents and then work with the one that you trust. When you’re starting your process, look at the kind of business they do and find out if they are specialized in commercial insurance and contracting. We suggest working with an independent agent, as they have multiple company options that can be tailored to suit your needs.
When you’re in the research phase, here are some questions you should ask your potential agent:
- How long have you been in business?
- Do you handle other business similar to mine?
- Are you familiar with my needs?
- What information will you need me to provide?
There’s no one-size-fits-all policy, so do your groundwork in advance. Help your future agent fully understand the “ins and outs” of your business, or your business plan if you’re a new contractor, to ensure that you are properly covered. A good agent will anticipate some future issues that could pop up and guide you to the right policy, instead of just a basic one.
Once you’ve settled on an agent, you will want to know exactly what is covered by your policy. As a business owner, it’s understandable that you’re incredibly busy, but you should make sure you invest the time to properly insure your business. This is the time you should take to find out what is included and excluded from each policy.
Another important factor to many contractors is how much you will pay for insurance. Unfortunately, there is no simple answer because different policies will have different bases for their premiums. Some factors include sales figures, types of work, and payroll figures. Workers compensation insurance is figured by payroll figures and employee classifications. When you initially begin your policy, you’ll work with your agent to provide an estimate for each of these categories. What Louis recommends for start ups is to touch base with your agent every quarter to talk about where your payroll and sales figures are at, then adjust accordingly.
Something that is often misunderstood is if your subcontractors are covered by workers compensation. Many feel that when you hire a subcontractor, it transfers the insurance costs to them, allowing the business to not have to pay for it. While that can be true, the subcontractor has to provide proof to the contractor that they have General Liability and Workers compensation coverage elsewhere. Otherwise, the insurance carrier will add that amount onto payroll for the contractor to pay. This can substantially change the premium amount.
A good policy to have in place is to check the paperwork of a subcontractor before they are permitted to be on a jobsite. This should include verifying their insurance policies and having all their tax documents. You’ll want to make a note of when their policy ends so you can reach out to the insurance company (or subcontractor) to get the updated insurance certificate so there are no coverage gaps in your records. Small or large, catastrophic or not, if you don’t have the right paperwork in place, you’re putting your entire business at risk.
Keeping your business in mind, when many contractors start out they’ll want to save a few bucks by going with the cheapest option available. However, the safety of your financial future is at stake, so it’s worth the investment to have the proper coverage for all situations.
The biggest benefit that you can provide to your company is to constantly build a culture of safety. The owner and foreman should constantly be reinforcing the importance of safety. The cost of the claim doesn’t just end with the claim. It’s the tip of the iceberg. There’s the cost of morale, sales, damage to equipment, lost customers, etc. That’s why it’s important to plan a culture of safety, including equipment and procedures. It begins at the top and trickles down. Make sure your team knows what is expected of them, and make sure you’re practicing what you preach.
SPONSOR APPRECIATION
Special thanks to our sponsor Top Roof Marketing, a full-service marketing group that specializes in the commercial roofing industry.
JOIN US LIVE TWICE A MONTH
To be part of the real-time discussion with our live audience, like us on Facebook and tune in every 1st and 3rd Thursday of the month at 7pm ET: www.facebook.com/RocketRoofShow.
