Setting up and running a small business can be fun and exciting for those who want to enter the business field. But it is important to realize that along with the excitement comes with risks, particularly if you’re in the construction industry.
We never know when accidents will strike, so it’s very crucial that you protect yourself, your company, and your employees from any work-related mistakes. To do this, you need to ensure that you have proper insurance that will cover you and your business should any “what-ifs” happen on the workplace. In addition, it’s also important to ensure that your company is bonded to prove that you have the capability to complete the project satisfactorily. Most homeowners and clients will refuse to work with you until you get bonded.
To make sure that your new business is legally protected, you can follow the following steps:
Step 1. Determine what are your insurance and bonding needs.
There are different types of insurance protection and bonding. Before you start your search, identify first all kinds of service that you want to offer to your clients. In this way, you’ll know whether you need a policy that offers a basic protection or a more specialized type of coverage. Most bonding and insurance companies also based the amount of premiums that you’ll need to pay on the type of service performed, so gather all the information you need before proceeding.
Step 2. Find companies and compare prices.
Contact different insurance and bonding companies online and get quotes. Once you’ve chosen several companies that you think will work for you, set-up an interview in order to understand their terms better and make a better comparison about their offers. During the interview, it’s crucial that you ask everything that you need to know, including the years they are in the service, the types of coverage they provide, and the benefits that you’ll get from buying one. Also, figure out if the company that you’ll be working is properly licensed and reputable. Keep in mind that insurance and bonding prices vary widely, so shop around and compare prices. If you’re on a budget and looking for a cheap contractor’s bonding insurance, find a company that offers an affordable yet quality service.
Step 3. Complete the required paperwork.
Once you’ve chosen the right bonding and insurance coverage for your business, as well as the agents that will handle your policies, the next step is to complete all the necessary documents. Then, make any payments necessary to keep your policies up-to-date. It’s also important to keep all your documents, including contracts and receipts, organized so that you can easily accessed them when needed.
Step 4. Maintain your coverage.
Pay all your premiums on a regular basis. Depending on your policy, you can pay your premiums on a monthly, quarterly, semi-annually, or annually basis. But aside from paying your premiums regularly, it’s crucial to have your insurance and bonding policies reevaluated every few months in order to make sure that you’re maintaining compliance with the contract. This is particularly true when you hire new employees or you plan to expand your company. Each time you hire a new employee, you should contact your insurance and bonding agent, and add that employee to the policy.