Navigating liability coverage can be challenging for contractors in New York, especially when policies are issued through surplus lines insurance companies. These policies are typically more complex, carry fully earned premiums, and offer limited payment flexibility—often putting financial strain on business owners who are juggling tight cash flows, payroll, and the ever-changing demands of job sites.
But there’s good news: A wave of new payment options has emerged that give contractors greater flexibility, improved cash management, and even the chance to turn their insurance spend into a financial advantage. These innovative solutions are helping contractors break free from rigid premium schedules and take back control of their cash flow.
Let’s dive into some of the standout payment strategies now available.
1. Fully Earned Premiums? No Problem with Zero Down, 11 Equal Payments
One of the most game-changing developments for contractors is the ability to finance fully earned premiums—regardless of which surplus lines carrier is providing the coverage. Traditionally, these premiums require large up-front payments, putting pressure on a contractor’s working capital.
Now, 100% financing is available with zero money down and 11 equal monthly payments. This program can be coupled with Pay-As-You-Go (PAYGO) options, allowing premiums to align more closely with payroll and actual exposure.
This kind of flexibility not only makes high-cost surplus lines coverage more manageable but also frees up capital to invest back into the business—whether that means buying materials, paying subs, or bidding on new jobs.
2. Down Payment Funding to Match Premium Financing
Even contractors who opt for premium financing often face one major hurdle: the down payment. For many, pulling together a 25% or more deposit upfront can cause cash flow disruptions or delay the binding of crucial coverage.
Now, there’s a solution for that too. Contractors can access funding specifically for the down payment—with zero out-of-pocket costs—and payments structured to match the premium finance plan.
That means no more scrambling to find funds just to get a policy started. With this option, policies can go into effect immediately, while payment schedules remain predictable and manageable.
3. Audit Premiums? Finance Them Too—with Zero Down
If you’ve been through a premium audit, you know how quickly an Audit Premium (AP) can sneak up and throw off your budget. These can be especially burdensome when they hit unexpectedly—and with short deadlines.
Now, there’s a way to handle that without draining your reserves. Contractors can finance their audit premiums with zero down and 11 monthly payments, just like with standard policies. Recently, a contractor faced an $83,000 AP due in just 10 days. Thanks to this new financing option, the AP was funded in just 48 hours, avoiding collections and protecting the broker’s commission.
This kind of quick-turnaround support is a lifeline for busy contractors who want to stay focused on building—not budgeting emergencies.
4. Turn Your Insurance into a Cash-Back Strategy
For contractors who can afford to pay premiums upfront—or who choose to use PAYGO—there’s another compelling option: leveraging a zero-interest business credit card.
This program offers zero interest for 12 months, plus a $750 cash bonus for spending $6,000 within the first three months. On top of that, contractors earn 1.5% cash back on all purchases.
Here’s the play: use the card to pay the carrier in full (often required with surplus lines policies), then let a payroll-based PAYGO system calculate, bill, and collect the premiums as they accrue—automatically remitting them to the credit card company. It’s a win-win.
Not only do contractors avoid interest charges, but they can also make even the most competitive insurance policies effectively $750 more affordable while continuing to earn rewards on their spend.
Putting Contractors in Control
These new payment solutions are part of a growing movement to modernize how contractors pay for liability coverage—especially in the tricky world of surplus lines. By offering more financing options, faster funding, and cash-back incentives, they empower contractors to protect their businesses without sacrificing liquidity.
Instead of choosing between full payment or high deposit premium financing, New York contractors now have tools that let them smooth out costs, respond quickly to audits, and even gain some financial perks from their insurance strategies.
Let BGES Group Help You Navigate the Options
At BGES Group, we specialize in working with New York contractors and understand the unique financial and operational pressures you face. We stay ahead of the curve to bring you smarter, more flexible insurance payment solutions—especially when dealing with complex surplus lines coverage.
Whether you’re a GC, artisan contractor, or construction firm looking for better ways to manage your liability premiums, we’re here to help you find the right program that fits your needs—and your budget.
Contact BGES Group Today – Gary Wallach
📞 Phone: (914) 806-5853
📧 Email: bgesgroup@gmail.com
🌐 Website: www.bgesgroup.com
Let’s build something better—together.