One of a builder’s greatest risks is a loss of your reputation. Why? Because your business depends on its reputation. A damaged or bad reputation can bring your contractor business to a halt.
You might be wondering why your reputation matters so much. In this article, we’ll take a quick look at the value of a contractor’s reputation. We’ll also answer the question: can Builder’s Risk Insurance add value to your reputation?
What do the pros say? Nielsen provides a market researching service. It includes insights into American consumer behaviors including shopping patterns, media trends, and lifestyle and demographic information. They’ve been doing this research for over 90 years.
Nielsen reports that “88% of people place the highest level of trust in word-of-mouth recommendations of from people they know. Also, they trust online reviews written by other consumers as much as they trust recommendations from personal contacts.”
What does this mean to your business? No matter what you spend on world-class marketing and advertising, your business reputation can be destroyed by word-of-mouth reviews.
Let’s start with the most common forms of contractor insurance:
Unfortunately, this leaves gaps in your insurance coverage.
Builder’s Risk Insurance is also known as course of construction insurance. This coverage is to protect your ground-up construction project, renovation, or remodeling project.
General Liability coverage protects your business from financial losses due to claims of libel, slander, violation of the right of privacy, and more. For instance, you use pictures of a client’s house in your promotional materials without their consent. If they sue your business, you have coverage.
But, this isn’t all you need.
Your contractor reputation relies on your business performance. This includes the quality of your workmanship. It also depends on whether you complete projects on time. A third contributor is your ability to solve problems.
Things go wrong on site. It is the nature of the construction industry. The thing is, does your construction business have the financial resources to keep working when this happens?
This is where Builder’s Risk insurance helps. It covers things like materials and equipment that will be used in the course of the project.
For the best advice and rates on your Contractor Insurance policies which include General Liability and Builder’s Risk Insurance, call us today. We can help. Contact one of our agents at (855)480-2184.