On April 2, 2025, former President Donald Trump announced a new round of tariffs that are already driving up material and operational costs for contractors across the country. With profit margins tightening, it’s more important than ever to reevaluate your insurance policies—including General Liability, Umbrella Liability, Business Auto, and Workers Compensation—to make sure you’re getting the best value without sacrificing essential protection.
Here are 10 actionable ideas to help contractors navigate this financial squeeze:
1. Bundle Your Policies
Insurers often offer package discounts when you bundle multiple policies, such as General Liability and Workers Compensation. Ask your broker about combining coverages under one carrier.
2. Increase Your Deductibles
Raising your deductible can lower your premiums. If you have a solid safety record and cash reserves to cover small losses, this can be a smart way to cut costs without losing coverage.
3. Reassess Payroll and Class Codes
Make sure your Workers Compensation policy accurately reflects your team’s job duties. Misclassified employees can drive up premiums. Adjusting codes to better fit the work being done can result in savings.
4. Review Subcontractor Agreements
Ensure your subcontractors carry their own valid insurance and name you as an additional insured. This can help limit your liability and reduce claims against your own policy.
5. Shop Around at Renewal
Insurance markets shift constantly. Even if you’ve been with the same carrier for years, it pays to get competitive quotes. A construction insurance specialist can do this for you.
6. Use Telematics in Business Vehicles
Installing GPS tracking and telematics devices in work vehicles helps reduce Business Auto premiums by promoting safer driving and offering usage-based insurance options.
7. Implement a Formal Safety Program
Insurers love proactive safety. Having a documented program—including safety training, toolbox talks, and proper PPE usage—can qualify you for discounts, especially on Workers Comp.
8. Reduce Claims Through Better Risk Management
Fewer claims mean lower premiums over time. Regular job site inspections, fall protection measures, and substance abuse policies are all proven ways to reduce incidents and costs.
9. Review Your Umbrella Policy Limits
Make sure your umbrella coverage is appropriate for your current operations. You may be able to adjust the limit up or down based on project size and risk exposure to better align with your budget.
10. Work with a Construction Insurance Specialist
Navigating these policies is complicated. A specialist knows the nuances of the construction industry and can find savings opportunities a general broker might miss.
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BGES Group—Your Construction Insurance Experts
If you’re a contractor in New York or the Tri-State area, BGES Group can help you protect your business while managing rising costs. We specialize in General Liability, Umbrella, Business Auto, and Workers Compensation coverage for construction businesses of all sizes.
Contact Gary Wallach
Phone: 914-806-5853
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com
Let BGES Group analyze your current policies and show you how to save—without compromising the coverage you need.