Separate Business From Pleasure Anything that’s used in the execution of your business — your garage or home office, your vehicles, your employees’ vehicles — should be declared in your commercial coverage.
If your employees ever use their own vehicles for lumber runs, for instance, make sure that your commercial auto or general liability policy covers hired and non-owned autos, Kinsey advises. For very little money, this simple declaration will pay for your company’s defense if an accident occurs. If you don’t have a commercial auto policy, add it to your general liability policy by endorsement.
Similarly, if you use your car for sales calls, either declare it on your commercial auto policy or add “business use” to your personal auto policy. If you work out of your home, Kinsey says it’s “hugely critical” that both your homeowners’ and your commercial carriers insure that location.
Review Before Renewing The language of insurers is notoriously obtuse, but don’t gloss over the fine print only to learn too late about exclusions. “The absolute worst thing a contractor can do is to renew the policies as they are,” Kinsey says. Laws change and policies change, and failure to keep up can be costly.
Give yourself several months to review your coverage, and have your broker or agent walk through it with you. Inform him or her of any positive developments at your company, such as new safety programs, continuing education courses, or professional certifications, such as NARI’s Certified Graduate Remodeler.
The more professionally your company presents itself to insurers, the more favorably they’ll consider you.