Where To Buy Contractors Insurance (And Where NOT To)


As a contractor, managing risks is a fundamental part of your business. One of the most critical aspects of this risk management is choosing the right insurance. But with so many options and sources available, it’s easy to fall into the trap of selecting an insurance product that doesn’t fully align with your business needs. In this post, we’ll explore why it’s crucial to work with insurance professionals who specialize in contractors’ insurance, using a real-life example to illustrate our points.

The Pitfalls of Non-Specialized Insurance Providers:

Many contractors purchase insurance through the same organization that assists them with licensing. While this might seem convenient, it often leads to significant issues down the line. These organizations, while helpful in other areas, are not insurance experts. Their primary goal is to sell policies, often leading to a lack of personalized attention to the specific needs and risks of your business.

Case Study: A Roofing Company’s Insurance Misstep:

Let’s consider a real example from a roofing company that recently came on board with us. Initially, they were categorized as a remodeling company in their insurance policy, not as a roofing company. This misrepresentation significantly impacts risk assessment and policy effectiveness.

The Consequences of Underreporting Revenue:

This roofing company, projected to earn $3 million in revenue, was insured for just $100,000. Such underreporting leads to a rude awakening during annual policy audits, where undisclosed revenue comes to light, and hefty additional premiums are charged. In this case, the company faced a potential $30,000 bill for the $2.9 million in revenue not accounted for at the start of the year.

The Importance of Accurate Insurance Assessment:

Accurate insurance assessment at the outset is crucial. It allows for better budgeting and financial planning. By ensuring your revenue and business type are correctly represented, you can avoid large, unexpected end-of-year costs. Remember, insurance audits typically result in additional charges, not refunds.

Choosing the Right Insurance Partner:

The key takeaway for contractors is the importance of partnering with an insurance expert who understands the nuances of your industry. A specialized insurance professional can provide tailored advice and ensure that your policy accurately reflects your business, preventing costly surprises down the line.


Insurance is not just a formality; it’s a critical component of your business’s risk management strategy. As a contractor, working with an insurance expert can save you from unforeseen financial burdens and provide peace of mind.

At PrimeRisk Insurance Solutions, we specialize in helping contractors like you navigate these complexities. Contact us for personalized advice and solutions that protect your business effectively.

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Are you ready to save time, aggravation, and money? The team at PrimeRisk Insurance Solutions is here and ready to make the process as painless as possible. We look forward to meeting you!