New York contractors face the burden of paying high premiums for essential insurance policies, including General Liability and Umbrella Liability insurance. These policies often come at exorbitant rates due to the risks associated with the construction industry in New York. Moreover, when these policies are written through surplus and excess lines insurance companies, the premiums typically need to be financed, further increasing the financial strain. However, there are strategies to reduce the costs associated with financing premiums. Here’s how.
The Challenge of High Premiums
New York contractors are no strangers to high insurance premiums. General Liability and Umbrella Liability policies are crucial for contractors to protect against claims of bodily injury, property damage, and other liabilities. However, these policies can be incredibly costly, particularly when sourced from surplus and excess lines insurance companies. These insurers specialize in covering high-risk businesses and projects that standard insurers often reject, resulting in higher premiums.
Financing these premiums is often necessary to manage cash flow, but the interest rates charged by finance companies can be steep, sometimes reaching double digits. This can add significantly to the overall cost of insurance.
A Strategy to Lower Financing Rates
One effective strategy for New York contractors to reduce their premium financing costs is to negotiate the terms of the financing agreement. A simple yet effective approach is to ask the finance company to delay the release of funds for up to 25 days. This request can result in a lower interest rate, as finance companies are often willing to adjust their rates to accommodate the delayed payment.
Here’s how you can implement this strategy:
1. Discuss with Your Insurance Broker: Your insurance broker plays a crucial role in arranging the financing for your insurance premiums. Ask them to communicate with the finance company on your behalf.
2. Negotiate a Delay in Fund Release: Request the finance company to delay the release of funds to the insurer for up to 25 days. This delay allows the finance company to manage their cash flow more effectively, which can translate into lower financing rates for you.
3. Secure a Lower Rate: By agreeing to the delayed release of funds, the finance company is more likely to offer a reduced interest rate on the financing. This can lead to substantial savings over the life of the financing agreement.
The Role of BGES Group in Lowering Insurance Costs
Navigating the complexities of insurance financing can be challenging, but you don’t have to do it alone. BGES Group, a specialist in construction insurance, can assist you in finding the best solutions for your insurance needs. With a deep understanding of the New York construction industry and a focus on personalized service, BGES Group is well-equipped to help you secure competitive rates for your insurance premiums.
Why Choose BGES Group?
– Expertise in Construction Insurance: BGES Group specializes in insurance for the construction industry, ensuring that you receive tailored advice and solutions.
– Personalized Service: With a focus on individual client needs, BGES Group offers a boutique-like service experience, making sure that your insurance requirements are met with the utmost care.
– Competitive Pricing: By working closely with insurers and finance companies, BGES Group can help you secure the most favorable rates for your insurance premiums.
Contact BGES Group for Assistance
If you need help navigating the complexities of premium financing and wish to explore strategies for reducing your costs, contact BGES Group at 914-806-5853. Ask for Gary Wallach, a seasoned insurance expert with extensive experience in the construction industry. Gary and his team can provide the guidance you need to optimize your insurance expenses and ensure that your business is adequately protected.
BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health. Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges.
BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help! We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too.
If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538
email: bgesgroup@gmail.com
website: http://www.bgesgroup.com
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