Navigating Regional Insurance Challenges for Contractors with Miranda Fischer Part 1

In construction having the right insurance coverage is crucial for protecting your business, mitigating risks, and scaling successfully. In a recent video interview, industry expert Miranda Fisher shared valuable insights on navigating the complex landscape of construction insurance. From understanding regional challenges to working with the right broker, her advice can help contractors make informed decisions and avoid costly mistakes.

One of the key points Miranda emphasized was the importance of understanding the specific insurance challenges in different regions. For example, construction defects are a major concern in Florida, while recognizing claims on a montrose basis is a significant issue in California. To effectively address these challenges, brokers must have a deep understanding of the region and the specific work areas of their clients.

Miranda also discussed the need for creative solutions when it comes to managing insurance premiums and audits. By negotiating premiums based on factors such as sales, payroll, or sub-costs, and allocating costs per territory, contractors can find ways to optimize their insurance expenses. Additionally, having open conversations with brokers about business projections and risks is essential for maintaining a trustworthy relationship and ensuring that coverage remains adequate as the business grows.

Throughout the discussion, Miranda repeatedly emphasized the crucial role of having the right insurance broker on your team. A good broker should possess three key qualities: knowledge of coverages and appropriate markets, experience in understanding job provider requirements and limits, and specialization in construction.

Working with a broker who specializes in construction can provide access to valuable resources and leverage with markets. On the other hand, working with the wrong broker or not having a specialized broker can lead to costly mistakes, such as inadequate coverage or missed opportunities for savings.

Another important topic covered in the podcast was contractual liability with upstream and downstream parties in the construction industry. Miranda stressed the importance of thoroughly understanding the insurance requirements for different projects and assessing added costs and qualifications before bidding.

She shared a story about negotiating excessive insurance requirements at JFK Airport project to help clients avoid unnecessary expenses, highlighting the value of having a knowledgeable broker who can advocate on your behalf. Additionally, Miranda emphasized the need to assess the insurance policies of subcontractors and suppliers to mitigate downstream risks, finding a balance between winning bids and hiring reputable, insured subcontractors.

For growing contractors, understanding insurance is essential for protecting the business despite the perceived added cost. Miranda explained that working with the right broker, specialized in construction and knowledgeable about the specific region, is crucial for ensuring adequate coverage and avoiding potential breaches of contract.

She advised contractors to request full insurance policies and a list of endorsements from subcontractors to ensure they are properly covered for specific exclusions and potential risks. Additionally, utilizing resources such as technology, advisors, lawyers, accountants, and consultants to review and pre-qualify subcontractors can help contractors make informed decisions and protect their businesses.

To reach Miranda Fischer and learn more about how she can help you with your construction business insurance coverage, email her at miranda.fischer@alliant.com or call at 516-479-7603

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