It’s also a good idea to carry an umbrella policy on top of your general liability policy to cover any loss that goes beyond your coverage. Simmonds recommends between $2 million and $5 million in extra coverage, depending on how much you can afford in premiums.
“[Umbrella liability] is cheaper than general liability, and it provides coverage in other areas besides just general liability,” Simmonds says, noting that automobile liability and employer’s liability are also covered under the policy.
According to Simmonds, a comfortable amount of coverage would include a $1 million per occurrence limit, $2 million aggregate limit, and a $5 million umbrella policy on top.
FINDING AN AGENT There is some debate about whether it is more favorable to buy insurance through an agent or through an independent broker.
“Brokers have access to a variety of companies and can shop around for the best price and most appropriate product,” says Downs, a broker himself. An agent, however, has a more direct relationship with the carrier and may be able to resolve problems more quickly.
Regardless of the route you decide to take, the most important thing when searching for an agent or broker is to find someone familiar with the industry. “When clients call me with a lower quote, 95% of the time it’s not an apples-to-apples comparison,” Downs says. “Usually, the cheaper policy isn’t structured properly.”
As a starting point, Downs recommends turning to local association chapters for referrals. Many companies offer reduced premiums to remodelers who are involved in associations or who carry professional designations. Having safety programs in place is also a plus, Simmonds says, because it’s an indication of professionalism. “A well-run business will always have a better time managing insurance than a poorly run business,” he points out.
When Strobel set out in search of a new agent, he wanted someone who could not only find him a good price but who could guide him through the complexities of his policy. “As remodelers, clients hire us for counseling as well as building,” he says. “We don’t make the decisions, but we provide guidance and suggestions. Shouldn’t it be my agent’s duty to do the same?”