Confusing Exclusions You have a business to run. When your insurance policies finally arrive in the mail, you may never get an opportunity (nor desire) to read through the entire policy to identify questions or concerns. Insurance policies are long, complex and in many instances written in legal terms. Often times an exclusion within your policy is more restrictive than the title may lead you to believe. For instance, many “Subsidence Exclusions” contain wording that extends the definition to include any movement of earth. I can’t think of a more basic description of the average UTCA contractor than a “mover of earth”. Currently, there are insurers that are requiring this exclusion on every General Liability policy that they issue. All UTCA members should be on the lookout for that exclusion and other hidden pitfalls! Are you “Picture Perfect”? There is a certain level of discretion used during the pricing of your insurance program and your insurance carrier may not have the opportunity to visit your location, your job sites, or perform their
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own extensive investigation of your business. Intangibles such as a strong safety culture or low employee turnover are not included items on a typical insurance company application. It is up to your agent to “paint the picture” to your insurance carrier. That picture is how terms, conditions and pricing are determined. Even Workers Compensation policies where, “the rates are the rates” have opportunities for credits based on claims experience and safety practices. Many times opportunities for savings are missed because the carrier just wasn’t aware. How does your agent know what separates your business from the average contractor? What does your picture look like? Always empower your agent with this kind of information. You wouldn’t let your general practitioner perform heart surgery, so why entrust your commercial insurance program to an insurance generalist. These examples are just a few of the common mistakes we find in reviewing construction insurance programs. Be sure to speak with a construction specialist to maximize your protection and minimize your unnecessary expenses.